Botswana has opened discussions with Angola to acquire about a 30% stake in the $6.6 billion Lobito refinery project, which is currently under construction. The move forms part of Gaborone’s effort to strengthen long-term fuel supply security.
Minister of Minerals and Energy Bogolo Kenewendo told parliament that talks began after recent meetings with Angolan officials. She explained that she traveled with President Duma Boko to Angola to meet both the Angolan and Namibian presidents but chose not to disclose the discussions earlier to avoid premature announcements.
She said Botswana has formally started discussions to participate in the refinery’s development. According to her, Angola offered Botswana the opportunity to take up to a 30% stake in the project as part of the refinery’s expansion plans.
The Lobito refinery is designed to process 200,000 barrels per day and is expected to reach completion around 2027. At full capacity, it could refine about 73 million barrels of crude annually, making it one of the largest refineries in sub-Saharan Africa. Zambia already holds a 26% stake in the project.
Botswana consumes between 25,000 and 35,000 barrels per day of refined petroleum products, all imported mainly through South Africa. A 30% stake would give Botswana access to roughly 60,000 barrels per day of refining capacity, equivalent to about 21.9 million barrels per year. This volume would meet domestic demand and allow the country to trade surplus products within the region.
Kenewendo said the government is reviewing the opportunity as part of a broader plan to secure stable fuel supplies, especially as Botswana remains exposed to supply disruptions and price fluctuations in external markets.
She added that discussions are focusing on the refinery’s structure, investment requirements, and expected returns. The government aims to improve long-term supply stability, manage fuel costs, and expand participation in the petroleum value chain.
The negotiations also reflect wider efforts across the Southern African Development Community to improve regional energy security. Landlocked countries such as Botswana depend heavily on fuel imports transported over long distances, which increases exposure to logistics challenges and price volatility.
The Lobito refinery project has experienced several delays since it was first proposed in the 2010s, mainly due to financing challenges and changes in project structure. Development regained momentum in the early 2020s under Angola’s state oil company Sonangol.
Although Angola produces about 1.1 to 1.2 million barrels of crude oil per day, it still imports roughly 80% of its refined petroleum products because of limited domestic refining capacity. The Lobito refinery, together with the 60,000-barrel-per-day Cabinda refinery expected to start operations soon and the planned Namibe refinery with a proposed capacity of 400,000 barrels per day, aims to reduce the country’s reliance on fuel imports.
source: www.intellinews.com
African Energy Council