The Strait of Hormuz oil pressure pushes Botswana to a 30% stake in Angola worth $6 billion.

As tensions between the United States and Iran escalate, countries are scrambling to secure energy supplies, pursue new alliances and strategic investments to prevent their economies from becoming politically entrenched.

Botswana is one of those setting the trend. The landlocked southern African country, which does not produce crude oil, is entirely dependent on exports of refined products, including petrol, diesel, kerosene and liquefied petroleum gas, most of which go through South Africa.

In response, Botswana is investing in a refinery project in neighboring Angola, from years of heavy reliance on diamonds, a sector that is now showing signs of a slow recovery.

According to local media reports, the country’s Minister of Minerals and Energy, Bogolo Kenewendo, told Parliament that Botswana has contributed 30 percent to Angola’s cleanup project after President Duma Boko’s visit to the country last week.

“Last week we went with President Boko to Angola to hold talks with the President of Angola and the President of Namibia but I didn’t want to say this ahead of time. So we started talks with Angola to participate in building ​​​​their cleaning project,” Kenewendo announced.

The project is understood to be the Lobito Oil Refinery, a major facility being developed by Sonangol, according to industry sources.

The refinery is expected to have a capacity of about 200,000 barrels per day and is estimated to cost about $6 billion, although estimates show that number could rise due to financing and construction considerations.

“Angola has petroleum, crude oil, a refinery and now they have given us the opportunity to take at least 30% of the refinery,” he told Parliament.

Kenwendo warned that the negotiations are still in the first stage.

“Discussions are continuing to see if we understand exactly what this project is, how much it needs. Therefore these discussions are continuing as we want to ensure that Botswana’s future in the petroleum sector is covered,” he said.

Angola is one of Africa’s leading oil producers, with oil production estimated at between 1.1 million and 1.2 million barrels per day. The country exports most of its products to major international markets, including China, India and parts of Europe.

Its state-owned energy company, Sonangol, oversees upstream and downstream operations and is leading efforts to expand domestic refining capacity through projects such as Lobito.

Kenewendo also revealed that Botswana is also evaluating fuel purchase arrangements with Sonangol.

“When we were in Angola, President Boko discussed with the President of Angola that when SONANGOL buys its fuel for Angola, it includes Botswana,” Kenewendo said.

He noted that discussions about this provision are ongoing, and further developments are expected as the discussions continue.