ANGOLA/ZAMBIA OIL PIPELINE MAY COST USD TWO BILLION

 Luanda - Construction of the oil pipeline linking Lobito (Benguela, Angola) and Lusaka (Zambia) may cost over US$2 billion, in an investment without resort to public funds.

Implementation of the AZOP-Angola-Zambia Oil Pipeline project, whose Memorandum of Understanding was signed on the evening of Thursday, 29 March, will only be carried out after feasibility studies, which will be carried out over a two-year period by technical teams from both countries.

The Memorandum of Understanding was signed by the Angolan Minister for Mineral Resources, Oil and Gas, Diamantino Azevedo and by the Zambian Energy Minister, Mattheu UKuwa.

Sonangol and the company to be indicated on the Zambian side will soon carry out feasibility studies on economic, technical, financial, environmental aspects and other issues.

Following the signing of this instrument, the conditions will be created so that the components inherent to the study can be carried out.

After two years of the feasibility study, which will be carried out, the results will be submitted to the governments for a final decision on this project, suggested by the Republic of Zambia.

If implemented, the initiative is expected to create 8,000 to 12,000 jobs in the two countries during the construction phase, according to Zambian Minister Matthew UKuwa, speaking to the press after signing the Memorandum.

"Once implemented, the pipeline project, which will have several lines, could create up to 4,000 permanent jobs in Angola and Zambia," Matthew Nkuwa said.

According to the Minister for Mineral Resources, Oil and Gas, Diamantino Azevedo, Angola's role in this project is crucial, despite the responsibility of both countries.

According to the Angolan minister, the Memorandum of Understanding sets out guidelines for the two countries, but before that it will be necessary to wait for the studies of these instruments signed by the two countries and the results that will determine the viability of the project and benefits.