Luanda — Angolan oil company Sonangol has terminated a contract with Hong Kong-based consortium United Shine to build the Cabinda Refinery but plans to go ahead with other investors, state news agency ANGOP reported.
State oil company Sonangol canceled the contract due to “the failure (of the consortium) to submit additional technical, commercial and financial studies to support the project’s completion … and shortcoming in corporate capitalization,” the news agency quoted Sonangol as saying in a statement.
Sonangol has signed a memorandum of understanding with London-based investment firm Gemcorp Capital to finance and implement the 60,000 barrel per day (bpd) project and is also seeking other potential investors, ANGOP said.
Angola, a member of the Organization of the Petroleum Exporting Countries, imports 80% of its refined products despite producing around 1.5 million barrels of crude per day.
The country suffered some of its worst fuel shortages for years this spring, which led to the sacking of Sonangol chair Carlos Saturnino and prompted Africa’s second largest crude exporter to expand its domestic refining capacity.
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*Noah Browning; Editing: Edmund Blair & Susan Fenton – Hydrocarbon Processing