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Angola’s state-owned oil company Sonangol announced Wednesday it is negotiating a $4.8 billion loan with Chinese financial institutions to partially finance a new refinery in the Atlantic port of Lobito, marking the country’s first such borrowing from China since 2017.
CEO Sebastião Gaspar Martins told reporters the company is in talks with “financial institutions in China” to secure funding for a project phase estimated at $6.2 billion, with support from a Chinese contractor.
A Sonangol team will travel to Beijing in April for meetings.
The financing terms do not include oil as collateral—a shift from past practices.
Shift in Chinese lending
Angola reduced exposure to resource-backed loans from China in 2017 amid volatile commodity prices.
Chinese lending to Africa peaked in 2019 but declined sharply during the pandemic, leaving projects like a Kenyan railway unfinished.
However, Beijing maintains it supports African investment and trade. Angola’s oil-backed debt to China fell nearly a quarter last year to $7.73 billion.
Refinery timeline
The Angolan government considers the Lobito refinery “strategic,” with refined petroleum production expected by December 2027.
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