Sonangol steps nearer
Sonangol, the Angolian national oil company, has signed
Dresdner Kleinwort Wasserstein as financial adviser on its $3.6
billion refinery project designed to process 9.75 million tonnes
per year (tpy) of crude oil. The diesel and gas produced will serve
the US markets.
Neither equity nor offtake agreements have been specified yet,
although Sonangol has contacted major oil players in regard to
this. Total project investment cost is estimated at around $3.6
billion. This would include the EPC contract, fees, development
costs and interest. This a major project for Angola, whose oil
exploration and production output is huge, estimated at over
750,000 barrels per day. Sonangol entered the market in 1976. It
was made sole concessionaire for exploration, and production in
Angola two years later. This new project is still in very early
stages, and DrKW says it is covering preparatory work on
structuring the deal, although it is known that it will be a
multi-sourced financing comprising ECAs, MLAs, lenders and
insurers. International commercial lenders will be sought over the
next few months. It is an onshore project and therefore more risky.
Although the Angolan civil war has recently ended, the perceived
risks still abound, and insurers will be expecting intense cover.
There is only one other current onshore project in the region,...
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