Angola’s Sonangol in talks with China for $4.8 billion refinery loan
Angola's state-owned oil company Sonangol announced Wednesday it is negotiating a $4.8 billion loan with Chinese financial institutions to partially finance a new refinery in the Atlantic port of Lobito, marking the country's first such borrowing from China since 2017.
Sonangol, Angola’s state owned oil giant, is in advanced discussions with Chinese financiers over a proposed $4.8 billion loan aimed at funding the construction of a new oil refinery, according to reports.
The move underscores Angola’s ongoing efforts to expand its domestic refining capacity and reduce its heavy reliance on imported petroleum products, despite being one of Africa’s top crude oil producers.
For years, Angola has exported the bulk of its crude oil while importing refined fuel products a costly imbalance that has strained foreign exchange reserves and exposed the country to global price volatility.
The proposed refinery project is part of Luanda’s broader strategy to close that gap by processing more crude locally.Sonangol’s talks with Chinese lenders reflect the long-standing economic ties between Angola and China.
Beijing has historically been a major financier of infrastructure and energy projects in Angola, often through oil-backed loans and strategic partnerships.
If finalized, the $4.8 billion facility would represent one of the largest recent financing arrangements in Angola’s energy sector.
Officials say expanding refining infrastructure is critical to cutting down on fuel imports, which continue to weigh on the national budget.
A new refinery would not only serve domestic demand but could potentially position Angola as a regional supplier of refined petroleum products.
Energy analysts note that improved refining capacity could stabilize local fuel supply, create jobs, and stimulate ancillary industries tied to petrochemicals and distribution networks.
China remains one of Angola’s biggest trading partners and a major buyer of its crude oil.
The latest negotiations highlight the continued strategic alignment between both countries, particularly in energy development.
Over the years, Chinese financing has played a central role in rebuilding Angola’s infrastructure following decades of civil war.
However, the country has also faced scrutiny over rising public debt levels linked to large-scale external borrowing.
The outcome of these discussions will therefore be closely watched by investors and policymakers alike, as Angola balances its infrastructure ambitions with debt sustainability concerns.
The refinery financing talks come at a time when Angola is seeking to revitalize its oil sector amid fluctuating global energy markets.
Increasing local value addition through refining is seen as key to strengthening economic resilience.
While negotiations are still ongoing and no final agreement has been announced, the proposed $4.8 billion loan signals Angola’s determination to modernize its downstream oil industry and reduce structural inefficiencies in its energy supply chain.
Further details are expected as discussions between Sonangol and Chinese partners progress.
