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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 US$ 10.9 billion.[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 industry. 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 Limited in London and Sonangol's representative on the board of directors 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 HCTA 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 his daughter 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]

Isabel and her inner circle were paid salaries, described in one indictment as "exorbidant renumerations," that cost Sonangol over $13 million in 14 months between 2016 and 2017, with her own monthly salary set at more than US$50,000.[13]

In November 15, 2017, the new President of Angola, João Manuel Gonçalves Lourenço, dismissed both Isabel and the entire board of directors under her and named Carlos Saturnino Guerra Sousa e Oliveira as the Sonangol chairman.[14][15] An internal audit later revealed that after she had been dismissed, Isabel had transferred US$38 million of the company's funds to the Dubai based company Ironsea (later renamed Matter),[16] which was only created by herself and her friend, Mário Leite da Silva, earlier that year. In total, Ironsea/Matter charged Sonangol more than US$130 million.[17]

Isabel fled to Dubai to avoid arrest in Angola, and in 2022 Interpol issued a red notice towards her.[18] She is accused of crimes including abuse of power, abuse of trust, embezzlement, forgery of documents, influence peddling, money laundering, and tax fraud.[17] She was convicted of embezzling €52.6 million from Sonangol in June 2023.[19]

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.[20]

In May 2019, Carlos e Oliveira was sacked[21] and replaced by Sebastião Gaspar Martins as head of the company.[22]

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 undergo a partial privatization, making 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.[23][24]

Organization

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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.

Main headquarters

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Sonangol's main corporate headquarters are in the Sonangol Building located on Rua Rainha Ginga, No 29-31 in the commercial Baixo neighborhood of the Ingombota district in Luanda. The Sonangol Building was built in 2005, designed by Chinese architect Sung-ho Hang. 2,000 people are employed in the building.[25]

Trading offices

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Sonangol Asia Limited

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Sonangol Asia Limited (Sonasia)[26] is a subsidiary trading company headquartered in Singapore which has been in operation since 2005.[27] Its head offices are located in the Centennial Tower in Singapore's Downtown Core.[28][29]

Sonangol Limited

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Sonangol Limited is Sonangol's European trading subsidiary in the United Kingdom. Its 9,000 square foot head office is located on Brompton Road in the Knightsbridge district of London.[30][31]

Sonangol USA

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Sonangol USA, or Sonusa, is Sonangol's trading company in the United States.[30] since November 12th, 1997.[32] Its 40,000 square foot headquarters are on Enclave Parkway in the Energy Corridor of Houston, Texas.[32]

Holding companies

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  • China Sonangol International Holding Limited, joint holding company in Hong Kong[33]
  • Empresa de Serviços e Sondagens de Angola (ESSA)[34]
  • Sonadrill Holding, 50/50 joint venture with Seadrill, controls Sonangol-owned drillships Sonangol Quenguela[35] and Sonangol Libongos,[36] as well as Seadrill-owned West Gemini[37]
  • Esperaza Holding BV holding company[38]
    • Amorim Energia, holding company with shares in Galp[39]

Infrastructure and support

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Sonadiets Limitada

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Sonadiets is a Luanda-based joint venture between Sonangol (30% stake) and international energy firm Dietsmann (70%).[40] Sonadiets provides operational and maintenance support for the petrochemical industry, as well as workforce training. Its clients include Sonangol subsidiaries as well as Total, ExxonMobil, and Eni.[41]

Energy, oil, and petrochemicals

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ENACOL

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ENACOL is owned by Sonangal (32.5%), Petrogal (32.5%), the government of Cape Verde (29.3%), and other minor partners. It markets, stores, and distributes petrochemicals in Cape Verde.[26]

Pumangol

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Pumangol is a network of 79 retail fuel stations and airport and marine fuel terminals formerly belonging to Swiss oil company Puma Energy. Sonangol acquired Pumangol and other assets in April 2021 when it sold its stake in Puma Energy to Trafigura in April 2021 for $600 million, then purchased Puma's assets in Angola for the same amount. Pumangol owns 79 fuel stations and the Terminal de Combustíveis da Pumangol em Luanda (TCPL) in Luanda Bay.[42]

Sonagas

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Sonagas develops and distributes natural gas.[30]

Sonamer

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Sonamer is an oil and natural gas well drilling company established in 1998 between Sonangol (49%) and Pride Foramer (51%), specializing in deep and ultra-deep waters.[26][30]

Sonangalp, Lda

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Sonangalp is a fuel and lubricant distribution company formed in 1994 in partnership with Petrogal.[43]

Sonangol-Congo

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In 1998, Sonangol incorporated a subsidiary in Kinshasa in the Democratic Republic of the Congo[44] as a 60-40 joint venture with Zimbabweancompany COMIEX,[45] with the Congolese Minister of State, Pierre-Victor Mpoyo, as its first CEO.[46] Sonangol later increased its stake to 75%.[44] Sonangol Congo focuses on the importing, marketing, storage, transportation of refined oil products in the DRC.[26] It is Angola's largest commercial enterprise in the DRC.[47]

Sonangol Distribuidora

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A Sonangol gasoline station on Don João II Ave in Luanda, likely operated by Sonangol Distribuidora.

Sonangol Distribuidora is a downstream petroleum product distribution subsidiary of Sonangol. It operates numerous retail gasoline stations.[30]

Sonangol Pesquisa e Produção

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Sonangol Pesquisa e Produção (Sonangol P&P) is an oil exploration and production arm of the Sonangol group.[30]

Sonangol Starfish Brasil P&P

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Sonangol Starfish Brasil P&P produces and explores for oil in Brazil.[30]

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 Cabo Verde (BAICV)[57]
  • Banco Angolano de Investimentos, S.A. relaunched as Banco Económico in 2014[58]
  • Dirani Project[59]
  • Sociedade de Desenvolvimento Imobiliário (SODIMO) real estate management[60]
  • Solo Properties Nightbridge, Ltd. through China Sonangol[48]

Technology and telecommunications

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Tourism and hospitality

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  • Atlântida Viagens e Turismo, tourism agency[52]
  • Centro de Convenções de Talatona (CCTA) convention center[7]
  • Hotel da Base do Kwanda[48]
  • Hotel de Convenções de Talatona (HCTA) five-star hotel[6]
  • Hotel Florença three-star hotel in Luanda[61][62]
  • Hotel Rio Mar hotel in Benguela[62]
  • Hotel Suíte Maianga hotel in Luanda[62]
  • Miramar Empreendimentos owning company of Hotel Intercontinental Luanda Miramar[63]
  • WTA Internacional S.A. travel agency[52]

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
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  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.
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  35. ^ 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. {{cite web}}: |last= has generic name (help)
  36. ^ "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.
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  63. ^ "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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