Nigeria’s indigenous oil company, Aiteo Eastern Exploration and Production Company has signed an Engineering, Procurement, and Construction (EPC) agreement with U.S.-based Deerfield Energy Services to commence the construction of a 240,000 barrels-per-day (bpd) refinery in Mozambique.
The Memorandum of Understanding (MoU) for the refinery project was initially announced at the 11th Mozambique Mining and Energy Conference and Exhibition in May as a 200,000 bpd facility.
The project is a joint venture between Aiteo (one of Nigeria’s leading independent oil operators) and Petromoc, Mozambique’s state-owned oil company. It will be launched in two phases.
The first phase, with a capacity of 80,000 bpd, is expected to be completed within two years, with total capacity ultimately scaled up to 240,000 bpd.
The government says the project will use low-complexity modular technology to accelerate execution and ensure operational stability.
Once completed, the refinery will be one of the largest in the Southern African Development Community (SADC) and will supply petrol, diesel, jet fuel, and naphtha for both local consumption and regional export markets.
“This EPC contract marks a defining milestone for Aiteo and Mozambique’s energy future,” said Ransome Owan, Aiteo’s Group Managing Director.
“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,” Owan added.
Meanwhile, Namibia and Botswana are also in talks to jointly construct a refinery as the Southern African region seeks to boost local processing capacity.
A look at Mozambique’s refining sector
For decades following the collapse of Portuguese rule, Mozambique has operated without a functional oil refinery.
The country’s first fuel processing facility in Matola Municipality ran between the 1960s and 1980s before it was decommissioned.
Today, however, Mozambique is aiming to revive its refining industry—starting with this modular plant.
Given Mozambique’s strategic location, the project is expected to reshape the region’s energy landscape.
“The project reflects the administration’s efforts to attract high-impact energy investment and expand industrial infrastructure across the country,” the government stated.
Mozambique, rich in natural gas and oil, already earns billions in annual revenue from energy activities.
Major players like Eni, TotalEnergies, and ExxonMobil are actively developing the country’s vast offshore gas reserves.
The refinery project is expected to benefit from technical partnerships with these global energy firms and private sector collaborators such as Aiteo.
“This is a transformative project that will position Mozambique as a relevant player in the liquid fuel value chain, with a positive impact on job creation, especially for our youth,” said President Daniel Chapo in May, during the project’s unveiling.
