Nigerian energy company Aiteo Eastern Exploration and Production Company has signed a strategic partnership with Mozambique’s state-owned petroleum firm, PETROMOC, to develop a 200,000 barrels-per-day oil refinery. The project marks a major step in regional energy cooperation and is poised to become the first refinery of its kind in Mozambique.
The proposed refinery is expected to process crude oil into a range of refined products including petrol, diesel, naphtha, and aviation fuel. It will play a key role in reducing Mozambique’s reliance on imported refined products and is also designed to serve regional export markets in Southern Africa.

The announcement of the partnership was made during a major energy conference in Maputo, where government officials and energy sector stakeholders praised the initiative for its potential to strengthen energy security and support industrial growth. The refinery is scheduled for completion within two years and is expected to generate thousands of direct and indirect jobs during construction and operation.
In addition to the main refinery, the project will include large-scale fuel storage infrastructure. This includes facilities for 160,000 metric tonnes of liquid fuels and 24,000 metric tonnes of liquefied petroleum gas. These components are aimed at boosting supply chain resilience and supporting the domestic market, which has seen increased demand in recent years.
Mozambique’s government has welcomed the partnership as a critical milestone in its long-term energy development strategy. Officials highlighted that this project aligns with the country’s ambitions to attract more investment into its growing energy sector, which includes significant offshore gas reserves and renewable energy initiatives.
For Aiteo, the collaboration expands its footprint in the African downstream oil and gas industry. Known primarily for upstream operations in Nigeria, this project signals the company’s interest in refining and energy infrastructure. By investing in a modular refinery in Mozambique, Aiteo positions itself as a regional player in energy supply, leveraging its expertise to support broader continental needs.
The refinery is also expected to have significant fiscal and economic benefits. It will reduce the foreign exchange spent on fuel imports, lower domestic pump prices in the long term, and enhance the trade balance for Mozambique. Furthermore, the anticipated job creation will extend to local contractors, engineers, technicians, and support services, thereby spurring local content development.
Industry analysts have described the partnership as a forward-thinking move that exemplifies the value of intra-African collaboration in energy development. Rather than rely on foreign firms, this model of South-South cooperation strengthens African capabilities, increases investment in local industries, and fosters knowledge transfer within the continent.
With execution plans already in motion, the refinery is being positioned as a transformative infrastructure project that will serve as a catalyst for broader economic activity in Mozambique and beyond. It also reflects the growing role of indigenous African companies in reshaping the continent’s energy future.
As the world continues to transition toward cleaner energy sources, large-scale refineries like this will play a transitional role in meeting current fuel demands while countries develop more sustainable energy frameworks. The Aiteo-PETROMOC refinery project is expected to strike a balance between addressing today’s challenges and planning for tomorrow’s energy needs.
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