In a major stride toward energy self-sufficiency and industrial development, Aiteo, one of Africa’s leading energy companies, has signed an engineering, procurement, and construction (EPC) agreement to develop a 240,000 barrels-per-day (bpd) refinery in Mozambique.
The agreement, which was formalized during a signing ceremony chaired by President Daniel Chapo, signals the start of a strategic joint venture between Aiteo US Corporation and Mozambique’s state-owned oil company, Petromoc. U.S.-based engineering firm Deerfield Energy Services LLC will handle the EPC responsibilities for the ambitious project.
The refinery is expected to significantly reduce Mozambique’s dependence on imported fuel, increase domestic refining capacity, and position the country as a key energy supplier within the Southern African Development Community (SADC) region.
Describing the project as a “defining milestone,” Dr. Ransome Owan, Aiteo’s Group Managing Director for Infrastructure, said the refinery would “reduce import reliance, create jobs, and lay the foundation for Mozambique to become a leading hub in the region’s downstream energy sector.”
Designed for phased development, the facility will begin with an initial 80,000 bpd processing train and scale up to full capacity of 240,000 bpd. It will utilize low-complexity, modular technology to ensure rapid deployment and long-term operational efficiency. The refinery will produce gasoline, diesel, jet fuel, naphtha, and liquefied petroleum gas (LPG), meeting domestic needs and supporting regional trade.
President Chapo, who has championed industrialization and energy independence as core pillars of his administration’s economic agenda, welcomed the project as a “transformative step” for Mozambique.
“This refinery is not just a project—it is a statement of intent,” the president said during the signing ceremony. “It reflects our determination to build a stronger, more self-reliant economy powered by strategic partnerships and sustainable energy solutions.”
Officials say the refinery will expand access to cleaner fuels, including LPG, contributing to efforts aimed at increasing affordable energy access and supporting clean cooking initiatives for households across the country.
Construction of the first phase is expected to be completed within 24 months. Upon completion, the facility will rank among the largest refineries in the SADC region, adding substantial processing capacity to the southern African energy landscape.
The agreement underscores Mozambique’s broader efforts to attract high-impact infrastructure investments, stimulate industrial growth, and create employment opportunities. For Aiteo, the deal represents a continuation of its commitment to long-term infrastructure development and regional energy integration across Africa.
Industry observers say the project’s scale and strategic importance mark it as one of the most significant downstream developments in the region in recent years.