Sonangol Group Business Operations and International Presence

Sonangol Group is a leading player in the Angolan oil and gas industry, with a diverse range of business operations that span across the globe.

The company operates in multiple sectors, including exploration and production, refining, and marketing of oil and gas products.

Sonangol Group has a significant presence in Africa, with operations in several countries including Angola, Brazil, and South Africa.

With a strong focus on international expansion, Sonangol Group has established partnerships with major international companies to enhance its global reach and capabilities.

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The Sonangol Group is a major player in the Angolan oil industry.

It was established in 1976 as the state-owned oil company of Angola, with the primary goal of managing the country's oil resources.

Sonangol has a significant presence in the global energy market, with operations in various countries.

Its headquarters is located in Luanda, the capital city of Angola.

The company has a diverse portfolio of activities, including exploration, production, refining, and marketing of oil and natural gas products.

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Sonangol's main corporate headquarters are located in the Sonangol Building on Rua Rainha Ginga, No 29-31 in the commercial Baixo neighborhood of the Ingombota district in Luanda.

The Sonangol Building was designed by Chinese architect Sung-ho Hang and was built in 2005.

Approximately 2,000 people are employed in the building.

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Isabel Dos Santos was appointed as chairwoman of Sonangol in June 2016 by her father, President dos Santos. He claimed it was to "ensure transparency and apply global corporate-governance standards", but many accused him of nepotism.

Her monthly salary was set at over $50,000, and she was paid exorbitant renumerations, costing Sonangol over $13 million in 14 months between 2016 and 2017. She demanded the Ministry of Finance inject $3 billion into the company, claiming it was necessary to rescue Sonangol from bankruptcy.

Isabel and her inner circle's salaries were described as "exorbidant renumerations", costing Sonangol over $13 million in 14 months between 2016 and 2017. Isabel was dismissed as chairwoman in November 2017, along with the entire board of directors under her.

She transferred $38 million of the company's funds to the Dubai-based company Ironsea (later renamed Matter), which was created by herself and her friend earlier that year. Ironsea/Matter charged Sonangol more than $130 million.

Isabel fled to Dubai to avoid arrest in Angola, and in 2022, Interpol issued a red notice towards her. She is accused of crimes including abuse of power, abuse of trust, embezzlement, forgery of documents, influence peddling, money laundering, and tax fraud.

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Sonangol has been expanding its operations and services over the years. The company created subsidiaries to meet its growing needs, such as telecommunications services, retail network support, trucking, shipping, data management, scientific, engineering, seismic, and others.

Sonangol's international presence began in 1983 with the opening of its first international subsidiary, Sonangol Limited, in London. This marked the company's entry into the global market.

In 2013, Sonangol made significant deals, including a 10% stake in Marathon Oil's offshore Angolan oilfield and the acquisition of exploration rights to five onshore oil blocks in Angola.

Here are some key milestones in Sonangol's expansion and development:

Sonangol's ongoing development projects, such as the Lobito refinery, demonstrate the company's commitment to growth and expansion.

The Lobito refinery project has seen significant developments in recent years. Sonangol has confirmed renewed activities on the project, including updating an earlier-executed FEED study for the refinery.

The FEED update works included preparing technical deliverables, defining the proposed refinery's 3D model, and preparing the project's early-FEED book. Sonangol also prepared an official preliminary project cost estimate and an invitation-to-bid package for a main EPC contractor.

Sonangol began unidentified structural works at the proposed refinery's site during 2022. The company also signed contracts with OECI SA and Dar Al-Handasah Consultants Shair and Partners Holdings Ltd. for preliminary EPC works.

In June 2023, Sonangol awarded a formal contract to China National Chemical Engineering Co. Ltd. (CNCEC) for delivery of EPC on the refinery. This contract is expected to take 40 months to complete from the start of construction.

As of February 2023, physical execution works on the Lobito refinery had reached 2%. Sonangol is also in the process of consolidating technical studies for possible integration of petrochemicals at the project.

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Sonadiets Limitada and Sonadiets Services Limitada were Luanda-based joint ventures between Sonangol and international energy firm Dietsmann.

They provided operational and maintenance support for the petrochemical industry, as well as workforce training. Their clients included Sonangol subsidiaries, as well as Total, ExxonMobil, and Eni.

Sonangol sold its 30% stake in Sonadiets Limitada and 51% in Sonadiets Services in 2022.

In February 2019, the Angolan government launched its Propriv privatization program, creating the National Oil, Gas and Biofuel Agency (ANPG) to regulate and promote the petroleum industry.

ANPG took over regulation and promotion from Sonangol, and was given the power to supervise Sonangol, becoming the new national concessionaire.

In May 2019, Carlos e Oliveira was replaced by Sebastião Gaspar Martins as head of the company.

Sonangol will refocus on its core business: the petroleum industry, and will sell its peripheral businesses such as aviation, banking, hotels, and real estate, many of which were built during the regime of the dos Santos family.

By 2027, Sonangol will undergo a partial privatization, making 30% of its shares available for purchase.

Here are some of the businesses that Sonangol is selling:

In February 2019, the Angolan government launched the Propriv privatization program, which aimed to transform the state-owned oil company Sonangol.

The program created the National Oil, Gas and Biofuel Agency (ANPG) to regulate and promote the Angolan petroleum industry, taking over from Sonangol.

ANPG now controls who wins licenses to explore for petroleum and awards contracts for production.

Carlos e Oliveira was sacked as head of Sonangol in May 2019 and replaced by Sebastião Gaspar Martins.

The Ministry of Finance began conducting a pruning of Sonangol's other functions in April 2020, including the sale of peripheral businesses such as aviation, banking, hotels, and real estate ventures.

Sonangol will refocus on its core business: the petroleum industry.

A partial privatization of Sonangol is planned, with 30% of its shares available for purchase by 2027.

The reforms aim to transform Sonangol from a regulating body and oil producer into a corporate entity overseen by a separate state entity.

Here are some of the hotels and other businesses that will be sold:

Sonangol, the Angolan state-owned oil company, has been involved in a series of privatization and restructuring efforts that have led to significant financial losses for the state.

Between 2005 and 2008, Didier Keller, the CEO of SBM Offshore, paid key Sonangol officials a total of US$ 6.8 million in bribes.

The construction of the Centro de Convenções de Talatona (CCTA), a convention center in Angola, was financed solely by Sonangol but resulted in a 30% stake being held by private companies, including Simaroco and Oil International Supply Services S.A.

A ten-year, US$ 12 million contract for the management of the Hotel de Convenções de Talatona (HCTA) was awarded to Dream's Leisure, a company created 13 days prior to the contract, owned by Manuel Vicente, then chairman of the board of directors of Sonangol.

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The contract stipulated that Sonangol would compensate Dream's Leisure for any net losses incurred through management of the hotel, which encouraged Dream's Leisure to inflate costs and declare losses.

In July 2019, President Lourenço canceled the contract, returning control of the Talatona hotel to the state.

Between 2007 and 2010, the government of Angola spent or transferred US$32 billion from government funds linked to Sonangol without proper documentation in the budget.

The International Monetary Fund (IMF) was assured that most of the US$32 billion was being used for "legitimate government reasons" and considered to be "found".

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Sonangol Group operates a joint venture called OPS, which manages a fleet of five FPSOs, including Kuito, Mondo, Sanha, Saxi Batuque, and N’Goma.

The Luanda refinery has seen significant upgrades, with a new platforming unit installed to increase gasoline production by 162% from 2022, resulting in a $242-million reduction in Angola's product imports.

Sonangol is also working on the construction of a 60,000-b/d greenfield refinery on the Malembo plain, with physical execution works for the first 30,000-b/d phase standing at 49% as of February 2024.

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The Sonangol Group is a vast and complex organization, often referred to as "an economic octopus". It operates in offices around the world, and owns, owned, or shared dozens of subsidiary and joined venture companies.

The group's reach is truly global, with operations in Africa, North America, Latin America, Europe, and Asia. This extensive network allows Sonangol to tap into diverse markets and resources.

Sonangol's organization is structured into various sectors, including upstream, midstream, and downstream operations. This allows the company to manage every stage of the petroleum industry, from exploration to distribution.

As of 2024, the company is currently in the process of divesting of many of its non-core assets. This strategic move aims to streamline operations and focus on core business areas.

Here are some key subsidiaries of the Sonangol Group:

Angolan refining operations have seen significant updates in recent years. Sonangol completed installation of a new platforming unit at its Luanda refinery, increasing gasoline production for the domestic market by 162% from 2022.

This move resulted in a substantial $242-million reduction in Angola's product imports. The new unit was installed last year and is expected to have a lasting impact on the country's refining capabilities.

Construction of Phase 1 of the greenfield refinery on the Malembo plain is ongoing, with a target completion date of yearend 2024. As of February 2024, physical execution works for the Cabinda refinery's first 30,000-b/d phase stood at 49%.

Development of a 100,000-b/d grassroots refinery in Soyo, Zaire Province remains ongoing. Negotiations are underway with KBR and unidentified technology licensors for execution of the Soyo project's FEED study.

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Sonasurf was a joint venture between Sonangol and Surf S.A. that operated ships for the oil industry since its founding in 1999. It was a significant player in the Angolan oil industry.

Sonangol held a 50% stake in Sonasurf Angola and 49% in Sonasurf International until selling both in 2022 under Propriv. This sale marked a significant shift in the ownership structure of Sonasurf.

Sonasurf's operations were diverse, with the company owning several other businesses, including Atlântida Viagens e Turismo, a tourism agency, and Miramar Empreendimentos, the owning company of Hotel Intercontinental Luanda Miramar.

Here are some key facts about Sonasurf's operations:

Sonangol Distribuidora is a downstream petroleum product distribution subsidiary of Sonangol that operates numerous retail gasoline stations.

In 2018, the company employed 910 workers. This suggests a significant workforce dedicated to fuel distribution.

An unnamed former CEO of Sonangol Distribuidora was charged with taking bribes from Trafigura and its CEO Mike Wainwright during the dos Santos presidency, gaining the latter profits of US$ 143.7 million between 2009 and 2011. This highlights the importance of ethical business practices in the industry.

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Sonangol's shipping operations are a significant part of their business. They have a fleet of tankers bearing the Sonangol name that transport crude and refined oil to destinations worldwide.

Sonangol Shipping Holdings Limited, a company registered in Nissau, Bahamas, owns this fleet of tankers. Their subsidiaries, including Sonangol Shipping Angola, manage the individual ships.

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The tankers are registered in Malta, indicating a complex ownership structure. This setup allows Sonangol to operate globally while complying with local regulations.

Sonangol also has a joint venture with SBM Offshore called OPS Servicos de Producao de Petroleos Ltd. This joint venture operates and manages a fleet of FPSOs, including the Kuito, Mondo, Sanha, and Saxi Batuque.

OPS is a joint venture between Sonangol and SBM Offshore that operates and manages a fleet of five FPSOs owned by Sonasing.

The fleet includes Kuito, Mondo, Sanha, and Saxi Batuque, as well as N’Goma, which was previously named Xikomba prior to a major refit.

OPS Servicos de Producao de Petroleos Ltd is a joint venture between Sonangol and SBM Offshore, showcasing the importance of partnerships in the oil industry.

The company's experience in managing FPSOs is a testament to the effectiveness of joint ventures in achieving complex tasks.

Sonangol's involvement in OPS highlights its commitment to expanding its operations and exploring new opportunities in the sector.

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The fact that N’Goma was previously named Xikomba before a major refit demonstrates the company's ability to adapt and evolve in response to changing circumstances.

OPS's operations and management of FPSOs are a crucial aspect of the oil industry, and its partnership with SBM Offshore is a key factor in its success.

Sonangol Group has a significant international presence, with operations in several countries.

The company has a strong presence in Africa, with a focus on the oil and gas industry.

Sonangol's international presence is driven by its ability to adapt to local markets and regulatory frameworks.

Its operations in Africa are supported by a network of subsidiaries and partnerships that enable it to respond quickly to changing market conditions.

TotalEnergies is teaming up with Sonangol to explore the offshore Kwanza Basin, a vast oil field located 150 kilometers southwest of Luanda, Angola's capital.

Sonangol, the national oil company of Angola, has signed a framework agreement with TotalEnergies to develop the first offshore drilling project in the Kwanza basin.

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Angola is one of the world's largest petroleum exporters, producing between 1 to 2 million barrels of petroleum every day.

The country's abundant oil reserves have made it an attractive destination for foreign investment, with companies like Chevron already working on a major project with Sonangol.

Chevron is collaborating with Sonangol to construct a refinery in Soyo, which is projected to become the largest foreign investment in Angolan history.

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Sonangol Asia Limited, also known as Sonasia, has been in operation since 2005.

Headquartered in Singapore, Sonasia is a subsidiary trading company with a significant presence in the region. Its head offices are located in the Centennial Tower in Singapore's Downtown Core.

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Sonangol has a significant presence in the Democratic Republic of the Congo, where it operates a subsidiary called Sonangol Congo.

In 1998, Sonangol incorporated Sonangol Congo as a joint venture with COMIEX, a Zimbabwean company. The Congolese Minister of State, Pierre-Victor Mpoyo, was the first CEO of Sonangol Congo.

Sonangol later increased its stake in Sonangol Congo to 75%. This subsidiary focuses on the importing, marketing, storage, and transportation of refined oil products in the DRC.

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Sonangol Group has a significant presence in the energy sector, particularly in downstream petroleum and power companies. It owns a 30% stake in these companies, which is slated for divestment.

SonaGás, a subsidiary of Sonangol, is a major player in the natural gas industry. It has a 22.8% stake in Angola LNG, a major liquefied natural gas plant near Soyo.

SonaGás has also established itself as a reliable supplier of natural gas, becoming the exclusive supplier of butane and liquid natural gas to ENCO, the national gas company of São Tomé and Príncipe, in 2017.

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Sonangol owns a 30% stake in downstream petroleum and power companies, which is slated for divestment.

SonaGás, a subsidiary of Sonangol, has a 22.8% stake in Angola LNG, a major liquefied natural gas plant near Soyo.

In 2017, SonaGás became the exclusive supplier of butane and liquid natural gas to ENCO, the national gas company of São Tomé and Príncipe.

SonaGás owns a 10% stake in the AMUFERT fertilizer factory in Soyo, which is planned to be opened by Afreximbank in July 2024, and is responsible for supplying gas to the factory.

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Angoflex is a joint venture between Sonangol and Technip Angola, established in 2002. Sonangol holds 30% of the company, while Technip Angola holds 70%.

Angoflex is a manufacturer of submarine umbilicals and pipelines for the oil industry. The company has completed over 24 projects for clients like BP, Chevron, Eni, ExxonMobil, and Total.

Angoflex celebrated a significant milestone in 2019, marking its 500th kilometer of umbilicals produced.

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The Sonangol Group has its roots in the nationalization of ANGOL in 1976, which led to the formation of Sonangol U.E.E. and Direcção Nacional de Petróleos.

This pivotal moment marked the beginning of Sonangol's journey as a state-owned company, with Directive 52/76 giving it a mandate to manage Angola's petroleum industry.

Sonangol obtained assistance from Algerian Sonatrach and Italian Eni to help it get started, leveraging the existing oil works of Texaco, Total, Shell, and Mobil.

In 1992, Sonangol P & P was founded as a subsidiary focused on prospection and production.