Angolan President Jose Eduardo dos Santos is expected to make a state visit to South Africa by the end of the year, with one STRATFOR source putting the dates at Dec. 14-15. The main topic of discussion will probably be a 200,000 barrels per day (bpd) oil refinery project located in the Angolan coastal town of Lobito. As Angola's lone refinery currently only produces around 40,000 bpd, the Lobito project would not only cover Angola's own refined fuels consumption, but also would turn the country into a net exporter. The main problem is financing, as Angola is reticent, if not unable, to cover the $9 billion price tag alone. South Africa could potentially be of assistance, as it is in need of refined fuels itself despite already having four crude oil refineries and plans in the works for a fifth. South Africa and Angola recently held talks over the possible creation of a joint venture that would engage in offshore oil exploration and the construction and management of refineries in Angola between their respective state-owned oil companies, PetroSA and Sonangol. Dos Santos' visit will thus be a barometer of relations between the two countries, both of which are looking to expand their influence in the region.
