Angola has invited Namibia to acquire an equity stake in its planned 200,000 barrels per day (bpd) Lobito oil refinery, offering its southern neighbour a potential role in a major downstream energy project designed to reduce fuel imports and supply regional markets.
President João Lourenço made the proposal on October 19 during talks in Luanda with Namibian President Netumbo Nandi-Ndaitwah, who was making a two-day state visit to Angola, Voz de Angola reported.
The refinery, under construction in Angola’s Benguela province, is expected to begin producing refined products in December 2027, with full completion scheduled for 2029. It is designed to produce diesel, gasoline, liquefied petroleum gas, aviation fuel and other petroleum products, according to Angola’s Ministry of Mineral Resources, Petroleum and Gas. The ministry said in August that construction was about 25% complete.
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Priority supply for shareholders
Lourenço said Angola wanted to expand domestic refining capacity while developing a regional market for petroleum products, with neighbouring countries that become shareholders receiving priority access to supplies.
The invitation comes as Namibia prepares to develop its offshore oil discoveries and considers how to build infrastructure and commercial partnerships to support a future petroleum industry. Namibia has made significant offshore discoveries but has yet to begin commercial oil production. TotalEnergies (Euronext Paris: TTE; LSE: TTE; NYSE: TTE), operator of the Venus discovery, is preparing a final investment decision on the project and continues to target first oil around 2030.
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Angola has been sharing its experience in petroleum exploration, production and marketing with Namibia, and Lourenço said participation in the Lobito project could deepen that cooperation.
The Angolan government has not announced an equity percentage, investment amount or binding commitment from Namibia under the latest proposal. An invitation to join the refinery’s shareholder structure does not constitute an agreed investment.
Botswana and Zambia also courted
The proposal also forms part of Angola’s wider effort to attract regional partners to the project. In September, Lourenço said during a visit by Botswana President Duma Boko that Botswana could join the refinery’s shareholder structure. Botswana’s energy minister had told parliament in March that the country had been offered up to 30% of the project, and Boko said Botswana would decide how much of that to take. Zambia has a memorandum of understanding with Angola on participation in the refinery. Sonangol has said Angola will retain a 51% majority in any restructuring.
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See IntelliNews: Botswana in talks to take 30% stake in Angola’s $6.6bn Lobito oil refinery
Import bill and financing gap
Angola’s state oil company Sonangol has sought investment partners to help develop, own and operate the Lobito refinery. The project is intended to increase domestic processing of crude oil and reduce the country’s dependence on imported refined fuels despite its position as a major oil producer.
Angola spent $1.79bn importing 1.74mn tonnes of refined petroleum products in the first half of 2026, an increase of 36% in expenditure despite a 0.6% decline in import volumes, according to figures reported by PetroAngola in August. The fuel-sector regulator IRDP put Angola’s dependence on imported fuel at 82.7% in the first quarter, reflecting its limited domestic refining capacity. The government now projects fuel subsidy spending of up to AOA3.8 trillion ($4.16bn) this year, more than twice the amount budgeted.
See IntelliNews: Angola’s 2026 fuel subsidy bill could hit $4.16bn, more than twice budgeted amount
Financing remains a major challenge for the Lobito project, which Sonangol has valued at $6.6bn. The company said in February that it was in talks with Chinese financial institutions for about $4.8bn to fund the next construction phase, and a Sonangol spokesperson said in June that those talks were continuing, underscoring Angola’s interest in attracting additional regional investors.
Adding value at home
Lourenço argued that oil-producing countries needed to capture more value from their resources rather than continuing to export crude and import finished products.
Nandi-Ndaitwah similarly called for greater local processing of natural resources, saying Angola and Namibia should move away from exporting raw materials without adding value domestically.
The two presidents’ discussions accompanied the signing of eight bilateral cooperation instruments covering sectors including fisheries, tourism, sport and culture.
For Namibia, a stake in Lobito could offer access to future refining capacity without immediately requiring construction of a large domestic refinery. For Angola, bringing neighbouring countries into the project could help attract investment and establish long-term markets for refined fuels.
However, the scale of any Namibian participation, its financing arrangements and potential supply entitlements remain to be negotiated. The proposed benefits will depend on the refinery’s completion and the commercial terms agreed between the parties.