Sonangol, Angola’s state-owned oil firm, is seeking a $4.8 billion loan from Chinese lenders to finance construction of the Lobito refinery, a strategic project aimed at strengthening the country’s domestic fuel production capacity, according to Reuters.
The proposed financing forms part of the broader $6.2 billion Lobito refinery development, which the Angolan government has prioritised to reduce reliance on imported refined petroleum products. Sonangol’s Chief Executive, Sebastião Gaspar Martins, said the company is in discussions with financial institutions in China, with further negotiations expected to take place in Beijing in the coming months.
Notably, the loan would not be secured against oil cargoes, marking a departure from past resource-backed borrowing arrangements that characterised Angola’s earlier financing deals with Chinese institutions. If finalised, the agreement would represent Sonangol’s first major borrowing from China in several years.
The Lobito refinery is expected to significantly expand Angola’s refining capacity, support local energy security, and position the country as a stronger player in regional fuel supply markets. MarketScreener says the deal also signals renewed financial engagement between Angola and China amid evolving global energy and infrastructure financing dynamics.
