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Sonangol Group

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Sociedade Nacional de Combustíveis de Angola E.P.
Sonangol
Company typeStatutory corporation
IndustryOil and gas industry
Founded1976 (1976)
Headquarters
Luanda
,
Angola
Key people
Sebastião Gaspar Martins (Chairman and CEO)
RevenueUS$ 10.9 billion (2023)
OwnerGovernment of Angola
Number of employees
13,000 (2022)
WebsiteSonangol.co.ao

Group Sonangol (Portuguese: Grupo Sonangol) is a parastatal that formerly oversaw petroleum and natural gas production in Angola.[1] The group consisted of Sonangol E.P. (Portuguese: Sociedade Nacional de Combustíveis de Angola, E.P.) and its many subsidiaries. The subsidiaries generally had Sonangol E.P. as a primary client, along with other corporate, commercial, and individual clients. In 2023, Sonangol produced 202 thousand barrels of oil with an income of 10.9 billion dollars.[2]

History

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Foundation

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On the eve of Portuguese Angola's independence from Portugal following the Carnation Revolution and the election of a democratic government in Portugal in 1976, the company ANGOL (ANGOL Sociedade de Lubrificantes e Combustíveis SARL), founded in 1953 as a subsidiary of Portuguese company SACOR) was nationalized and split in two, forming Sonangol U.E.E. and Direcção Nacional de Petróleos. Directive 52/76 instituted Sonangol as a state-owned company with a mandate to manage the country's substantial petroleum and natural gas. Using the extant remains of Texaco, Total, Shell and Mobil's oil works, Sonangol obtained the assistance of Algerian Sonatrach and of Italian Eni.[2]

Expansion

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As the company grew it had a need to obtain services, such as telecommunications services, retail network support, trucking, shipping, data management, scientific, engineering, seismic, and others. The company created subsidiaries to meet these needs. Sonangol and its many subsidiaries have continued to expand into other lines of business.[3]

Oil giant Marathon Oil announced in September 2013 that it had agreed a deal in principle to sell a 10% stake in its offshore Angolan oilfield to Sonangol.[4]

In December 2013, Sonangol acquired the exploration rights to five onshore oil blocks in Angola, which could be tendered for development at a later date.[5]

Graft under the dos Santos family

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Centro de Convenções de Tatalona

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Starting in 2006, Sonangol financed the construction of the Centro de Convenções de Talatona (CCTA), a convention center which was opened in December 2009 by President José Eduardo dos Santos. The CCTA included the five-star[6] Hotel de Convenções de Talatona (HCTA), and in total cost Sonangol over 200 million US$. Despite being the sole financier, Sonangol only held a 30% stake in the CCTA, which was majority held by Simaroco and also partially by Oil International Supply Services S.A. (OISS) and a Chinese investor. Simaroco was founded in 2005 by José Carlos de Castro Paiva, then chairman of Sonangol London and Sonangol's representative on the board of the Banco Africano de Investimentos. OISS was owned in part by Alberto Cardoso Severino Pereira, Sonangol's former financial director, and lawyer Domingos de Assunção de Sousa de Lima Viegas, who was also employed by Sonangol and was Sonangol’s representative on the auditing committee of the BAI. In effect, this transferred millions of dollars worth of assets held by a state entity into private hands.[7][8]

A ten-year, 12 million US$ contract for management of the CCTA was then awarded to Dream's Leisure, a company created thirteen days prior to the issuing of the contract, which was owned by Manuel Vicente, then Chairman of the Board of Directors of Sonangol; Francisco Maria de Lemos, Financial Director of Sonangol; and Orlando Veloso, Director of the Engineering Department. The terms of this contract stipulated that Sonangol would compensate Dream's Leisure for any net losses incurred through management of the hotel. Furthermore, the contract forbade Sonangol to transfer any third-party rights without approval from Dream's Leisure. In the opinion of Rui Verde, a lawyer and legal expert of anti-corruption watchdog Maka Angola, "the contract clearly encourages Dream's Leisure to inflate costs and declare losses, in order to plunder the State as much as possible."[6][8]

Unaccounted for billions

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In December 2011, Human Rights Watch said that the Government of Angola should explain the whereabouts of US$32 billion missing from government funds linked to Sonangol. A December 2011 report by the International Monetary Fund (IMF) said that the government funds were spent or transferred from 2007 through 2010 without being properly documented in the budget.[9] The IMF was assured that most of $32 billion was being used for "legitimate government reasons" and considered to be "found".[10]

Isabel dos Santos

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In June 2016, President dos Santos removed the entire board of Sonangol, and installed Isabel dos Santos as chairwoman of the company, to "ensure transparency and apply global corporate-governance standards".[11] This led to many accusations of corruption and nepotism. One year later, Maka Angola reported that Isabel dos Santos demanded, with threat, that the Ministry of Finance inject three billion US$, claiming it was necessary to rescue Sonangol from immediate bankruptcy, though this was not granted.[12]

In November 15, 2017, the new President of Angola, João Manuel Gonçalves Lourenço, dismissed Isabel dos Santos and named Carlos Saturnino Guerra Sousa e Oliveira as the Sonangol chairman.[13] An internal audit later revealed that after she had been dismissed, Isabel dos Santos had transferred US$38 million of the company's funds to a Dubai based company.[14] Isabel dos Santos fled to Dubai to avoid arrest in Angola, and in 2022 Interpol issued a red notice towards her.[15]

Privatization and streamlining

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In February 2019, the National Oil, Gas and Biofuel Agency (ANPG) was created to take over regulation and promotion of the Angolan petroleum industry from Sonangol. ANPG was given the power to supervise Sonangol, and became the new national concessionaire. In this regard, ANPG now controls who wins licenses to explore for petroleum, and awards contracts for production.[16]

In July 2019, President Lourenço canceled the Dream's Leisure contract, returning control of the Talatona Hotel to the state.[8]

In April 2020, the Ministry of Finance began conducting a pruning of Sonangol's other functions, including a selling of its peripheral businesses such as its ventures in aviation, banking, hotels, real estate, and shipyards, many of which were built during the regime of the dos Santos family. Sonangol will refocus on its core business: the prospecting, drilling, and sale of oil. Finally, Sonangol is to make 30% of shares of itself available for purchase by 2027. These reforms are aimed at transforming Sonangol from being both regulating body and oil producer into a corporate entity overseen by a separate state entity, though it will remain majority state owned.[17][18]

Sonangol sold its stake in Puma Energy, an energy trading firm, to Trafigura in April 2021 for $600 million. Sonagol also purchased Puma's assets in Angola for $600 million. The assets included the Pumangol chain of gasoline stations and airport and marine terminals.[19]

Organization

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Operations and Subsidiaries

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Sonangol Group has operated in offices around the world and owned outright or owned sizable shares of dozens of subsidiary and joined venture companies around the world. As of 2024, the company is currently in the process of selling off many of its non-core assets.[20] It owns or has owned the following:

Corporate and trading offices

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  • China Sonangol International Holding Limited, joint holding company in Hong Kong[21]
  • Sonadiets corporate infrastructure[22]
  • Sonangol Africa headquarters in Luanda
  • Sonangol Asia trading office in Singapore[22]
  • Sonangol Cabo Verde, S.A[23]
  • Sonangol Limited based in the Merevale House in Kensington, London, UK[22]
  • Sonangol USA (Sonusa), located in the Energy Corridor of Houston, Texas[24][22][25]

Energy, oil, and petrochemicals

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  • Empresa de Serviços e Sondagens de Angola (ESSA)[26]
    • Sonadrill Holding, 50/50 joint venture with Seadrill, controls Sonangol-owned drillships Sonangol Quenguela[27] and Sonangol Libongos,[28] as well as Seadrill-owned West Gemini[29]
  • Esperaza Holding BV holding company[30]
    • Amorim Energia, holding company with shares in Galp[31]
  • OPS Production, Ltd.[23]
  • Petromar offshore oil platform construction[22]
  • Pumangol, network of retail gas stations formerly belonging to Puma Energy, including the Terminal de Combustíveis da Pumangol em Luanda (TCPL) facility in Luanda Bay[32]
  • Sonagas natural gas exploration[22]
  • Sonamer oil recovery; deep drilling[22]
  • Sonangalp, Lda.[23]
  • Sonangol Distribuidora downstream petroleum products including gasoline/petrol[22]
  • Sonangol Pesquisa e Produção (Sonangol P&P) Oil exploration[22]
  • Sonangol Pesquisa e Produção Iraq Oil production in Qaiyarah and Najmah oil fields in Iraq[33]
  • Sonangol Starfish Brasil P&P oil exploration and production in Brazil[22]
  • Sonawest seismic data service[22]

Construction and shipyards

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Logistics, shipping, and freight

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Real estate and finance

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  • Banco Angolano de Investimentos, S.A. relaunched as Banco Económico in 2014[41]
  • Dirani Project[42]
  • Sociedade de Desenvolvimento Imobiliário (SODIMO) real estate management[43]
  • Solo Properties Nightbridge, Ltd. through China Sonangol[23]

Technology and telecommunications

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Tourism and hospitality

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  • Atlântida Viagens e Turismo, tourism agency[20]
  • Centro de Convenções de Talatona (CCTA) convention center[7]
  • Hotel da Base do Kwanda[23]
  • Hotel de Convenções de Talatona (HCTA) five-star hotel[6]
  • Hotel Florença three-star hotel in Luanda[44][45]
  • Hotel Rio Mar hotel in Benguela[45]
  • Hotel Suíte Maianga hotel in Luanda[45]
  • Miramar Empreendimentos owning company of Hotel Intercontinental Luanda Miramar[46]
  • WTA Internacional S.A. travel agency[20]

Technologies

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Sonangol USA, Sonangol London, and Sonangol Asia are the main trading and operations offices for the crude and product cargoes sold on behalf of Sonangol E.P. Sonangol Starfish has been located in Rio de Janeiro, Brazil, since 22 March 2010.

References

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  1. ^ Heller, Patrick R. P. (2011), Victor, David G.; Hults, David R.; Thurber, Mark C. (eds.), "Angola's Sonangol: dexterous right hand of the state", Oil and Governance: State-Owned Enterprises and the World Energy Supply, Cambridge University Press, pp. 836–884, doi:10.1017/cbo9780511784057.022, ISBN 978-0-511-78405-7
  2. ^ a b "Sonangol celebrates 48 years with focus on onshore exploration". Embassy of the Republic of Angola in South Africa. Retrieved 2024-08-14.
  3. ^ a b c "Winne.com - Report on Angola - Angola's tormented path to petro-diamond led growth". World INvestment NEws. Archived from the original on 2023-06-03. Retrieved 2024-08-13.
  4. ^ Marathon Oil to sell stake in Angolan field for $590 million, International: Reuters, 2013, archived from the original on 2021-05-16, retrieved 2021-07-05
  5. ^ Sonangol secures oil exploration rights in five onshore blocks in Angola, Africa: Oil Review Africa, 2013, archived from the original on 2013-12-12, retrieved 2013-12-12
  6. ^ a b c Morais, Rafael Marques de (2019-07-17). "Sonangol e o Saque no Hotel de 200 Milhões de Dólares". Maka Angola (in European Portuguese). Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  7. ^ a b Morais, Rafael Marques de (2012-05-22). "Hotel Talatona and the Scavangeing of Sonangol". Archived from the original on 2024-03-03. Retrieved 2024-08-14.
  8. ^ a b c "Estado recupera Hotel Convenções de Talatona". Novo Jornal (in Portuguese). 2019-07-31. Archived from the original on 2022-05-13. Retrieved 2024-08-14.
  9. ^ Human Rights Watch - Angola: Explain Missing Government Funds Archived 2011-12-21 at the Wayback Machine retrieved 21 December 2011
  10. ^ Wroughton, Lesley (2012-01-25). "IMF finds most of Angola's missing $32 bln". Reuters. Archived from the original on 2014-08-16. Retrieved 13 August 2012.
  11. ^ "All in the family: Angola president picks eldest daughter to head state oil firm, western firms scramble for contracts". MG Africa. 2016-06-03. Archived from the original on 2017-02-16. Retrieved 2016-06-03.
  12. ^ Morais, Rafael Marques de (2017-06-01). "Sonangol on the Brink". Archived from the original on 2024-02-27. Retrieved 2024-08-14.
  13. ^ Exonerado Conselho de Administração da Sonangol, Angola: Angop (Agência Angola Press), 2017, archived from the original on 2017-11-15, retrieved 2017-11-15
  14. ^ "Angola's Isabel dos Santos denies graft allegations by oil firm chief". Reuters. 2018-03-05.
  15. ^ "Interpol confirms red notice for Angolan billionaire Isabel dos Santos". Reuters. November 30, 2022. Archived from the original on 2023-06-09. Retrieved 2024-08-13.
  16. ^ "Angola's National Oil and Gas Agency is now official". Energy Capital & Power. February 8, 2019. Archived from the original on May 25, 2022. Retrieved May 7, 2022; "Presidential Decree No. 49/19 creating the National Agency for Oil, Gas and Biofuel (ANPG). FAOLEX Database". FAO.org. 2022. Archived from the original on May 8, 2022. Retrieved May 7, 2022.
  17. ^ Ayuk, NJ (2023-07-04). "Angola's Sonangol's Journey Towards Partial Privatization and Shifting Mission - African Energy Chamber". African Energy Chamber. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  18. ^ Almeida, Henrique; Mendes, Candido (2022-09-01). "Angola Plans to Sell Stake in National Oil Firm Sonangol by 2027". Bloomberg.com. Retrieved 2024-08-13.
  19. ^ Payne, julia (April 16, 2021). "Trafigura to buy Sonangol's Puma Energy stake for $600 million". Reuters. Archived from the original on May 16, 2021. Retrieved May 7, 2021.
  20. ^ a b c d e Cativelos, Pedro (2022-03-02). "Angola: Sale of Sonangol Assets Yields US$84M • 360 Mozambique". 360 Mozambique. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  21. ^ Burgis, Tom; Sevastopulo, Demetri (2014-08-08). "China in Africa: how Sam Pa became the middleman". Financial Times. Retrieved 2024-08-14.
  22. ^ a b c d e f g h i j k l m n o p q r Stephens, Sian (1 March 2016). Sonangol: Angola’s Charm Offensive. Natural Resource Governance Institute. Archived from the original on 13 August 2024. Retrieved 13 August 2024.
  23. ^ a b c d e f g h i PricewaterhouseCoopers. "Target Companies". PwC. Archived from the original on 2024-08-14. Retrieved 2024-08-14.
  24. ^ "1177 Enclave Pkwy. Archived 2012-03-24 at the Wayback Machine" Energy Corridor. Retrieved on 6 August 2011.
  25. ^ "Contact Information Archived 2011-07-20 at the Wayback Machine." Sonangol USA. Retrieved on 6 August 2011. "1177 Enclave Parkway 2nd floor Suite 200 Houston, TX 77077 "
  26. ^ "Seadrill signs new JV with Sonangol, Angola". www.worldoil.com. 2019-02-06. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  27. ^ Limited, Seadrill. "SDRL - New Angola Contract for Seadrill Joint Venture Quenguela Drillship". www.prnewswire.com. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  28. ^ "Angola: Sonadrill Wins 12-well, $402,500 Per Day Contract for Libongos Drillship". Offshore Engineer Magazine. 2022-11-03. Archived from the original on 2023-03-25. Retrieved 2024-08-13.
  29. ^ "West Gemini booked for long-term drilling campaign offshore Angola". Offshore. 2022-04-25. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  30. ^ Rani, Archana (2021-07-28). "Angola's Sonangol declared as sole owner of investment in Galp". Offshore Technology. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  31. ^ "Angolan oil firm Sonangol to keep stakes in Galp, Millennium bcp". Reuters. January 4, 2023. Archived from the original on 2023-01-12. Retrieved 2024-08-13.
  32. ^ "Sonangol will take over Puma Energy's assets in Angola". Mobility Plaza. 2024-08-20. Archived from the original on 2024-08-14. Retrieved 2024-08-13.
  33. ^ "SONANGOL P&P IRAQ". Archived from the original on 2024-08-14. Retrieved 2024-08-14.
  34. ^ "Serviços – Porto do Lobito" (in European Portuguese). Archived from the original on 2024-03-21. Retrieved 2024-08-14.
  35. ^ "Angola's Sonangol begins selling assets in firms". Reuters. April 25, 2020. Retrieved August 13, 2024.
  36. ^ "Angola's Sonangol begins selling assets in firms". Reuters. April 25, 2020.
  37. ^ "Quem Somos – Manubito, Lda" (in European Portuguese). Archived from the original on 2024-08-14. Retrieved 2024-08-14.
  38. ^ Newsroom, APO Group-Africa; Power, Energy Capital & (2024-05-10). "Angola's Infrastructure Supports New Concessions, Ahead of 2025 Bid Round". energycapitalandpower.africa-newsroom.com. Archived from the original on 2024-08-14. Retrieved 2024-08-13.
  39. ^ "SONASING XIKOMBA LTD". directory.marinelink.com. Archived from the original on 2024-08-14. Retrieved 2024-08-14.
  40. ^ "FPSO Xikomba | Soapro". Soapro Group. Retrieved 2024-08-14.
  41. ^ Morais, Rafael Marques de (2018-10-23). "Angola's Path to Justice: Prosecuting the Guilty and Recovering the Stolen Billions". Archived from the original on 2024-03-03. Retrieved 2024-08-14.
  42. ^ grxnet.com. "Jornal de Angola - Notícias - Privatização de activos ronda os USD 130 milhões". Jornal de Angola (in Portuguese). Archived from the original on 2023-03-07. Retrieved 2024-08-13.
  43. ^ "Ilha Dourada | Transparência Internacional Portugal" (in European Portuguese). 2022-01-22. Archived from the original on 2024-08-13. Retrieved 2024-08-13.
  44. ^ Costa, Tatiana (2020-08-31). "Sonangol is going to alienate Hotel Florence". VerAngola. Archived from the original on 2024-08-14. Retrieved 2024-08-13.
  45. ^ a b c "Sonangol opens public tenders to privatize hotel units". VerAngola. 2021-09-24. Archived from the original on 2024-08-14. Retrieved 2024-08-13.
  46. ^ "Miramar Empreendimentos moves into the State sphere". VerAngola. 2020-10-29. Archived from the original on 2024-08-13. Retrieved 2024-08-13.

Further reading

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