Botswana is moving to secure a stake in a multi-billion-dollar oil refinery project in Angola, at a time when tensions surrounding the Strait of Hormuz are raising concerns about potential disruptions to the global fuel supply, prompting countries to bolster their energy security and prepare for similar shocks in the future.
As tensions between the United States (U.S.) and Iran intensify, countries are increasingly seeking to secure their energy supplies by forging new alliances and making strategic investments to protect their economies from geopolitical shocks.
Botswana is among the countries adjusting its approach. The landlocked Southern African nation, which produces no crude oil, relies entirely on imports of refined products, including gasoline, diesel, paraffin, and liquefied petroleum gas, most of which transit through South Africa.
In response, it is moving forward with plans to invest in a refinery project in neighboring Angola, marking a shift from years of heavy reliance on diamonds, a sector that is now beginning to show signs of slowing down.
Botswana in talks to acquire a stake in the Lobito refinery
According to local media reports, Minister of Minerals and Energy Bogolo Kenewendo informed Parliament that Botswana had been offered a stake of up to 30% in a refinery project in Angola, following President Duma Boko’s visit to the country last week.
The project in question is the Lobito Refinery, a major infrastructure project being developed by Sonangol, according to industry sources.
The refinery is expected to have a processing capacity of approximately 200,000 barrels per day and is valued at around $6 billion, although projections indicate that the figure could rise due to financing and construction issues.
“Angola has oil, crude oil, a refinery, and has now given us the opportunity to acquire at least a 30% stake in the refinery,” the minister told Parliament.
Angola’s production capacity strengthens the case for the partnership
Angola is one of Africa’s leading oil producers, with estimated production of between 1.1 and 1.2 million barrels per day. The country exports most of its crude oil to major international markets, including China, India, and parts of Europe.
The state-owned energy company, Sonangol, oversees upstream and downstream operations and leads efforts to expand domestic refining capacity through projects such as the Lobito project.
Additional supply agreements under consideration
Kenewendo also revealed that Botswana is exploring fuel procurement agreements with Sonangol.
“When we were in Angola, President Boko held talks with Angolan President João Lourenço to ensure that when Sonangol procures fuel for Angola, it can also include Botswana,” Kenewendo assured.
He indicated that discussions on this agreement are ongoing, with further updates expected as negotiations progress.
Source: Business Insider Africa
