Seoul: Angola is set to provide South Korea with increased crude oil supplies as part of an effort to address supply challenges arising from the crisis in the Middle East. This initiative could lay the groundwork for longer-term bilateral energy cooperation between the two nations, according to Angolan Ambassador to South Korea, Sianga Kivuila Samuel Abilio.
According to Yonhap News Agency, Ambassador Abilio shared these insights during an interview in Seoul, emphasizing the importance of diversifying Seoul's energy supply chains due to the ongoing Middle Eastern conflict. He noted that the spot market could aid in the short term if disruptions occur in shipping through the Strait of Hormuz, allowing South Korean refineries to turn to Angolan spot cargoes to meet immediate needs.
The ambassador highlighted the possibility of directing sales specifically to Korea, which would help satisfy the country's energy needs and position Angola as a complementary supplier. This approach is crucial given Angola's constraints related to committed production, export capacity, and logistics. Discussions have already taken place between Angola and Seoul's foreign ministry, with expectations that the South Korean government will facilitate connections between Korean firms and Sonangol, Angola's state-owned oil company.
While Angola is sub-Saharan Africa's second-largest oil producer, much of its oil sector is developed through major Chinese financing, with a significant portion of its crude production tied to long-term supply commitments linked to loan repayments to China. Furthermore, Angola's abundance of critical minerals, including lithium and rare earth elements, presents another avenue for cooperation between the countries.
Ambassador Abilio emphasized Angola's efforts to diversify its economy beyond oil and diamonds through major investments in the critical minerals sector. He also urged South Korean companies to actively participate in the Lobito Corridor project, a major railway and logistics network connecting Angola's Atlantic port of Lobito with mineral-rich regions in the Democratic Republic of the Congo and Zambia.
The ambassador highlighted the potential for South Korean companies to contribute to the project, leveraging their strengths in rail systems, ports, construction, digital infrastructure, and industrial equipment. This involvement could lead to securing long-term mineral offtake agreements and refining partnerships, particularly for essential materials like copper and cobalt used in EV batteries, electronics, and renewable energy systems.
As the Korea-Africa Foreign Ministers' Meeting approaches, scheduled for June 1-2, Ambassador Abilio called on Seoul to take more decisive steps towards market opening to expand economic cooperation with African countries. He pointed out concerns from several African governments regarding customs tariffs and trade barriers imposed by South Korea on African products, advocating for tariff reductions, greater market access, technology transfer, and increased investment in strategic sectors.
Since establishing diplomatic relations in 1992, South Korea and Angola have strengthened cooperation as mutually complementary partners, especially in resources and technology. Angolan President Joao Lourenco has identified South Korea as one of Angola's key cooperation partners, recognizing Korea's potential and valuable experience in development, industrialization, and technology, which are crucial for Africa's progress.