Angola’s Sonangol in Talks for $4.8bn Chinese Loan to Fund Lobito Refinery

Angola’s state oil firm, Sonangol, is negotiating a $4.8 billion loan from Chinese lenders to help finance the $6.2 billion Lobito refinery project, a major initiative aimed at boosting the country’s refining capacity and energy security.

The refinery, planned for the coastal city of Lobito, is expected to reduce Angola’s reliance on imported refined fuels, despite its status as one of Africa’s leading crude oil producers.

The project is central to the government’s plan to expand domestic value addition in the oil sector, lower fuel import costs, stabilize local supply, and generate jobs across manufacturing and logistics.

Officials say the financing approach signals a move away from traditional oil-backed loans toward more diversified funding sources. China remains a key economic partner for Angola, particularly in infrastructure and energy development.

Once operational, the Lobito refinery is projected to process substantial volumes of crude for both domestic use and regional export.

While final financing terms and construction timelines have yet to be announced, negotiations are ongoing as the government pushes to advance one of its most significant energy investments in recent years.