Angolan national oil company, Sonangol, has suspended building work at the Lobito Refinery and the Ocean Terminal of Barra do Dande to reassess the project, the state company said in a statement issued Friday in Luanda.

The document adds that these projects are of paramount importance for the country, but Sonangol considers the measure a necessity due to the new reality facing Angola, particularly in the oil sector, which requires a thorough review of its development, phasing and financing.

The public company pledged to continue to meet its contractual obligations to date and reiterated its commitment to a sustainable fuel supply to the Angolan market, taking into account improved efficiency and the company’s cost structure.

The Lobito Refinery, which was due to occupy an area of 3,805 hectares, was expected to be completed in 2018, after the first stone was laid in 2012 with an estimated cost of US$5.6 billion.

The refinery is designed to process 200,000 barrels of oil per day and produce fuels such as gasoline, diesel, jet fuel (Jet A1) and other derivatives.

In February 2015 Sonangol announced completion, this year, of the Barra do Dande Sea Terminal, costing US$1 billion, but in March said the work would be concluded in 2017.

Source: macauhub