Angola set to privatise 30 per cent of national oil company Sonangol by 2022

Angolas Minister of Mineral Resources and Petroleum H.E. Diamantino Pedro AzevedoAngola’s Minister of Mineral Resources and Petroleum Diamantino Pedro Azevedo said in London on 21 January that the government had made significant progress in its efforts to restructure the oil and gas sector

Initial successes include significant cost reductions at the national oil company (NOC) Sonangol that have led to the government deciding to list up to 30 percent of the company. The government believes that this will enable the company to not only to raise money for investment, but will also increase its competitive edge.

Further reforms include the privatisation of Sonangol subsidiaries that do not belong to the NOC’s core business of exploration and production. This privatisation process offers significant opportunities for new entrants into Angola’s oil and gas sector. Initial projections point to foreign direct investment flows of up to US$10bn in the next three years, as external players move in to take over from Sonangol in major support service roles previously fulfilled by the NOC.

In an effort to continue promoting the ongoing reforms in the sector, The Ministry of Mineral Resources and Petroleum has partnered with Africa Oil & Power, the continent’s premier platform for energy investment and policy, to promote and attract foreign direct investment in what is one of Africa’s biggest economies.

As part of this, the Angola Oil & Gas (AOG) Conference & Exhibition will return for a second year as the highlight of an international investment drive aimed at bringing new deals to the table and signing up new entrants to Angola’s oil and gas sector. The next edition will be held 16-17 June, in Talatona. Surrounding the conference will be a global drive to present opportunities to a targeted audience of relevant investors.

“Thanks to the President’s sweeping reforms, Angola has embarked on an ambitious drive to attract foreign direct investment,” said James Chester, acting CEO of Africa Oil & Power. “Africa Oil & Power is proud to support those ongoing efforts with a global promotional campaign. The AOG Conference & Exhibition, which has become an unmissable, unrivaled investment event, will provide a strong anchor point for the 2020 initiative.”

Capital inflows into bankable projects will be a primary objective of the 2020 effort. Ongoing initiatives being promoted include the 2020 oil and gas licensing round, marginal field development, gas monetisation, and attractive projects across the value chain, including the international tender for the Soyo refinery and the ramp-up of the Cabinda and Lobito refineries.

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