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Russian companies to build $12bn refinery complex in Angola

Staff Writer |
Angola has given two Russian companies the green light to build a major refinery complex and railroad that will help the African country – a major oil exporter – finally cut its dependence on imported petroleum.

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The $12bn mega project is being put forward by companies Rail Standard Service and Fortland Consulting Company, which have set up a consortium with local partners.

Their aim is to build a 400,000-barrel per day refinery in the southwestern city of Namibe (its port pictured above). The work will also include a rail link to the newly refurbished Benguela railroad.

An order signed by Angolan President José Eduardo dos Santos on 9 March gives the Russian joint venture permission to develop 10 square kilometres of land, and commits the Angolan government to buying 364,000 bpd of petrol and other fuels as production increases over an 11-year period, reports Portuguese news site, Negocios.

The investors will benefit from eight-years of tax exemptions and will be allowed to repatriate their profits.

The first phase of this project will be a petroleum desalination unit to be built over three and a half years.

The project is Angola’s latest attempt to set up a refining and petrochemical industry to extract more value from its oil production, presently the largest in Africa at 1.7 million bpd.


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