Luanda, Aug. 5, 2024 (Lusa) - Angola's minister of mineral resources and petroleum acknowledged on Monday difficulties in financing refineries but said that the government remains focused on the goal of self-sufficiency in refined products and that the projects will be carried out.
In the first edition of "Conversations without Makas", an initiative by journalist and economist Carlos Rosado de Carvalho, minister Diamantino Azevedo presented an exhaustive assessment of his two terms in office with the oil and mineral resources portfolios since 2017 and emphasised that mineral resources are "a blessing".
"Men can turn them into a curse, depending on their use. Oil has given a lot to this country," said the minister, speaking to journalists, considering that Angola should maximise the use of each barrel of oil by "doing things better and differently".
Diamantino Azevedo gave examples of sectors that Angola intends to develop, such as refining, petrochemicals, or fertilisers, which could be other uses for oil, the main engine of the Angolan economy. However, he said that to do so, "we need a well-defined strategy" and to implement work that he said should not be limited to the government but should also involve businesspeople.
Regarding the government's goal of stabilising production at around 1 million barrels a day, he said that it has managed to attract investment at a time when it is facing increasing challenges, such as competition from other producers, including in Africa, and the energy transition.
"What we have to do is be more attentive, work hard with investors, create a favourable environment for more investment to come in (...) It's a continuous job that we must continue every day," he said.
Regarding refineries, in addition to the one in Luanda, he said that other projects are underway in Cabinda, Soyo, and Lobito and recognised that there are some funding difficulties.
"The current international context causes difficulties, some endogenous, others exogenous, but we are here to face the challenges and bring the projects to a successful conclusion," he said.
In addition to the Luanda refinery, which began operating in the 1960s and whose capacity has since been quadrupled, the government has planned to develop a refinery in Soyo, which has been handed over to the US consortium Quanten but has not yet managed to raise the necessary funding.
The government has also faced difficulties with the Cabinda refinery, which was handed over to Gemcorp with Sonangol's participation. It has already had several inauguration dates, and production is expected to start early next year.
Diamantino Azevedo said that Sonangol has been "helping" with the financing, and he will eventually have a conversation with the promoter to review the conditions of participation (currently, it is 10%).
As for the Lobito refinery, the largest, with a capacity to process 200,000 barrels a day, but whose works have been interrupted several times, it currently belongs to state-owned Sonangol. It has not yet resolved the financing issues.
"We are open to partners who want to be shareholders and put up capital," he emphasised.
The oil minister also said that the Barra do Dande ocean terminal would be completed in the second half of this year and announced the intention to build a gas cylinder factory in the complex, which should also house part of the hydrogen project.
The minister said that the terminal, which will increase storage capacity by 300 cubic metres, is essential for implementing the country's energy security reserve law and will be complemented by "small storage facilities in the provinces."
RCR/ADB // ADB.
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