GABORONE, Mar 31 – Botswana is in preliminary discussions to take up to a 30% stake in Angola’s Lobito Oil Refinery, as the landlocked southern African nation moves to address longstanding vulnerabilities in its energy supply chain
Minerals and Energy Minister Bogolo Kenewendo disclosed the development to Parliament following President Duma Boko’s visit to Angola, where talks were held with both the Angolan and Namibian presidents.
Botswana produces no crude oil and relies entirely on imports of refined petroleum products petrol, diesel, paraffin and liquefied petroleum gas most of which transit through South Africa.
“Angola has petroleum, crude oil, refinery and they have now given us an opportunity to at least take 30% of the refinery,” Kenewendo told the National Assembly. She cautioned that negotiations remain at an early stage, with due diligence still under way to determine the full scope and cost of the investment.
President Boko confirmed the offer at a press conference in Gaborone, saying it was extended during his visit to Angola. The Lobito Refinery is valued at approximately $6 billion and is designed to process up to 200,000 barrels of crude oil per day.
The project, led by Sonangol, Angola’s state-owned oil company, restarted development in December 2023 after being stalled for nearly a decade.
Sonangol is contributing approximately $950 million of its own capital, primarily for infrastructure, while seeking to bridge a remaining funding gap of around $4.8 billion through engagement with major banks
The refinery’s chief executive has indicated mechanical completion is targeted for early 2027
Beyond the equity stake, Kenewendo disclosed a second arrangement under discussion. President Boko held talks with Angolan President João Lourenço for Sonangol to include Botswana in its fuel procurement when purchasing for domestic supply an arrangement that could give Gaborone access to refined products through Angola’s state energy apparatus
Angola’s credentials as a supply partner are substantial. The country extracted approximately 1.13 million barrels of crude oil per day in 2024, making it one of sub-Saharan Africa’s leading producers.
Sonangol oversees the country’s upstream and downstream energy operations. The company is also advancing a broader programme to raise Angola’s total refining capacity to 445,000 barrels per day through three new facilities, complementing the existing 65,000-barrel-per-day Luanda refinery
