Mozambique has taken a significant step towards energy independence and regional influence with the signing of an agreement to develop a 240,000 barrels-per-day (bpd) oil refinery, backed by Nigerian energy firm Aiteo.
The agreement, formalised during a signing ceremony chaired by Mozambican President Daniel Chapo, sets in motion the construction of what is projected to be one of the largest refineries in Southern Africa. The deal represents a strategic collaboration between Aiteo US Corporation and Mozambique’s state-owned oil company, Petromoc.
Deerfield Energy Services LLC, an American engineering and construction firm, has been awarded the contract to handle engineering, procurement, and construction (EPC) works. The refinery will be developed in phases, beginning with an initial 80,000 bpd processing unit, before scaling up to its full capacity of 240,000 bpd.
Officials say the project aims to reduce Mozambique’s dependence on imported refined products and position the country as a key supplier to neighbouring nations. Once operational, the plant is expected to produce petrol, diesel, jet fuel, and naphtha for both domestic use and regional trade.
In a statement, Aiteo described the project as a “milestone” that will contribute to job creation and economic growth in Mozambique. “It will reduce import reliance, create jobs, and lay the foundation for Mozambique to become a leading hub in the region’s downstream energy sector,” said Dr Ransome Owan, the company’s Group Managing Director for Infrastructure.
The development of domestic refining capacity forms a central part of Mozambique’s broader industrial strategy, which prioritises energy access, economic diversification, and infrastructure development. Government officials highlighted the potential of the project to expand access to cleaner fuels and support clean cooking initiatives through liquefied petroleum gas (LPG) distribution.
Construction of the first phase of the refinery is scheduled for completion within 24 months. Upon completion, the facility is expected to be one of the largest in the Southern African Development Community (SADC), bolstering fuel supply security in the region.
The agreement underscores the Chapo administration’s efforts to attract foreign investment in strategic sectors, while also strengthening Aiteo’s position as a regional energy player beyond its Nigerian base.
Although the refinery promises economic benefits, analysts have cautioned that such large-scale energy infrastructure projects typically face risks related to financing, environmental compliance, and execution timelines. No project financing details were disclosed at the ceremony.
This development marks Aiteo’s latest expansion in African downstream infrastructure, as the firm seeks to broaden its footprint beyond upstream oil operations in Nigeria.
