Name and Location
Sonaref oil refinery, Benguela, Angola.

Project Description
The project will involve the development of Angola’s Sonaref oil refinery, located about 8 km north of Lobito, in central Benguela. The unit will occupy an area of about 150 ha and is expected to complement current production at the only existing refinery in Luanda.

The facility processes local crudes, mainly from the Kwanza and Palanca oilfields, with most of the refined product going into the domestic market and surplus fuel oil, gas oil and jet fuel being exported to neighbouring countries.

The Sonaref refinery, as proposed, will be built in two phases to process 200 000 bbl/d of heavy acidic crude oil, which will be transformed into by-products, such as unleaded gas, diesel, jet fuel, illuminant oil, liquefied petroleum gas, as well as limited quantities of sulphur and oil coke.

The crude oil, from both onshore and offshore sources, will first be transported in oil tankers to a bridged platform at Lobito bay, to be stored in pipelines en route to the refinery.

Value
The project value is estimated at $8-billion.

Duration
First-phase production is expected in 2014.

Client
State-owned oil company Sociedad Nacional de Combustiveis de Angola (Sonangol).

Key Contracts and Suppliers
KBR (front-end engineering and design); Technip Angola Engenharia Limitada, a joint venture comprising Technip (60% share) and Sonangol (40% share) (project management).

Latest Developments
Sonangol has decelerated the construction of its Sonaref oil refinery, as it seeks a partner to help fund the $8-billion project. Detailed information regarding the type of partnership the company seeks has not been disclosed.

The company is expected to submit a revised proposal for the refinery to Cabinet later this year.

Meanwhile, it was reported, in late 2010, that Sonangol and South Africa’s PetroSA had signed a memorandum of understanding to step up cooperation in the energy sector, which could include the two companies establishing a joint venture to build the Sonaref refinery, although nothing has been agreed yet.

On Budget and on Time?
The Sonaref refinery has been stalled for years, as Sonangol has struggled to find a foreign partner to build the plant. The company, however, still maintains that the plant’s construction will start in 2011, with the exact date for completion not yet determined.

Contact Details for Project Information
Sonangol, +244 2 22 334448 or fax +244 2 22 391782 or email secretariageral@sonangol.co.ao.
KBR communications director Heather Browne, tel +1 713 753 3775 or email heather.browne@kbr.com.
Technip Angola Engenharia Limitada, tel +244 2 22 371635 or fax +244 2 22 371757.