Angola’s government has described the Lobito refinery as a “strategic” project, expected to begin producing refined petroleum products in December next year, Reuters reported.

Sonangol, the state oil company, is engaging with financial institutions in China to secure 4.8 billion US dollars for one phase of the 6.2 billion US dollars refinery project, CEO Sebastiao Gaspar Martins said at a news briefing.

The proposed financing would be Sonangol’s first borrowing from China since 2017, when the oil producer reduced its exposure to resource-backed loans.

Martins confirmed that the company is approaching Chinese lenders with the support of the project’s Chinese contractor. “The next phase is estimated at 4.8 billion US dollars, and we are contacting Chinese institutions with the support of the contractor, who is also Chinese, in order to obtain this financing,” he said.

A Sonangol delegation is expected to visit Beijing in April for discussions with Chinese financial institutions. The company stated that the loan terms do not include the use of oil as collateral.

Last month, the Angolan finance ministry suggested that China Development Bank could provide the funding, although further details were not disclosed. Sonangol did not reveal the specific institutions it is negotiating with.