Transafrica Fund I, managed by Singapore-based TransafricaCapital, and Sonangol Refinação e Petroquímica (SRP) have signed an agreement of principles to jointly develop the Zaire Petrochemical Project in Soyo, Angola. Signed at Sonangolheadquarters in Luanda on November 12, the agreement establishes a two-phase development plan, beginning with a modular refinery designed to process more than 20,000 barrels per day (bpd).
The African Energy Chamber (AEC) sees the agreement as an important step toward advancing Angola’s downstream ambitions. The partnership stands to expand domestic refining capacity and reduce dependence on imported petroleum products.
The agreement was signed by Joaquim Kiteculo, Executive Director of Sonangol’s refining company Sonaref, and Roman Cheung, representing Transafrica. Angola’s Secretary of State for Oil and Gas, José Alexandre Barroso, and SonangolChairman Sebastião Gaspar Martins attended the ceremony.
Phase I will establish a modular refinery in Soyo, Zaire Province, processing Angolan crude into diesel, gasoline and LPG, primarily for domestic consumption. The products will meet AFRI-5 specifications, limiting sulfur content to 50 parts per million. Modular construction will allow processing units to be prefabricated off-site while civil works proceed simultaneously in Soyo, with construction estimated at approximately 18 months following FID.
Phase I investment is expected to reach hundreds of millions of dollars, with the final amount dependent on feasibility studies and the procurement process. The EPC contractor will be selected through a public tender. According to Transafrica, companies within the China National Petroleum Corporation group have provided technical support during project preparation, bringing additional engineering expertise to the development.
The partnership also includes a proposed human capital development program, with Transafrica offering to fund 100 scholarships for young Angolan university graduates. Participants would receive specialist training in China covering petrochemical engineering, construction and project management. The partners also intend to prioritize the recruitment and professional development of Angolan workers throughout the project’s implementation, strengthening domestic participation in the downstream sector.
Phase II would expand total refining capacity to approximately 110,000 bpd, supported by additional processing facilities and infrastructure. Planned studies include deep conversion of heavy residues, while supporting infrastructure could encompass a marine terminal, oil pipelines and dedicated water and electricity networks. Investment could reach billions of dollars, subject to feasibility assessments, regulatory approvals and FID.
The longer-term objective is to develop Soyo into an integrated petrochemical industrial park modeled on Singapore’s Jurong Island. Shared infrastructure and interconnected industrial facilities would allow outputs from individual plants to become feedstock for other operations, supporting greater domestic value addition and industrial development.
The AEC views the agreement as an opportunity to move Angola’s downstream sector toward greater self-sufficiency and industrial capacity. Progress will depend on completing feasibility studies, securing financing and advancing the EPC tender. The Chamber supports the partnership and encourages continued cooperation between Sonangol, international investors and technical partners to bring the Soyo refinery into development and strengthen Angola’s domestic energy supply.
“Angola has the resources to become a major refining and petrochemical hub, but achieving that ambition requires investment, technology and strong partnerships. The Transafrica-Sonangol agreement represents an important step toward unlocking Soyo’s potential, expanding domestic fuel production and creating opportunities for Angolan businesses and professionals,” says NJ Ayuk, Executive Chairman, AEC.
