Sonangol Group

The Sonangol Group, also known as Grupo Sonangol, was a state-owned entity responsible for overseeing petroleum and natural gas production in Angola. It consisted of the main company, Sonangol E.P. (Sociedade Nacional de Combustíveis de Angola, E.P.), and its numerous subsidiaries. These subsidiaries primarily served Sonangol E.P. but also catered to other corporate, commercial, and individual clients.

Angola, endowed with substantial offshore and coastal petroleum reserves exceeding 5 billion barrels (790 million m3), experienced a significant surplus of discoveries compared to its consumption, with a ratio of approximately 5-to-1.

In February 2019, the Angolan government transferred the regulatory functions of the petroleum industry from Sonangol to a newly established governmental agency called the National Oil, Gas and Biofuel Agency (ANPG). This transition included the authority for awarding contracts related to fossil fuel exploration, development, and production. This move marked a significant shift in the industry's governance structure.

On the brink of Portuguese Angola's independence from Portugal in 1976, following the Carnation Revolution and the establishment of a democratic government in Portugal, the company ANGOL (ANGOL Sociedade de Lubrificantes e Combustíveis Sarl) was nationalized and divided into two entities: Sonangol U.E.E. and Direcção Nacional de Petróleos. This restructuring resulted in the creation of Sonangol as a state-owned company, tasked with the management of Angola's substantial petroleum and natural gas resources. Leveraging the existing infrastructure of oil companies like Texaco, Total, Shell, and Mobil, Sonangol collaborated with Algerian Sonatrach and Italian Eni.

In September 2013, Marathon Oil announced a preliminary agreement to sell a 10% stake in its offshore Angolan oilfield to Sonangol, solidifying the company's role in the Angolan oil sector.

In December 2013, Sonangol expanded its portfolio by acquiring exploration rights for five onshore oil blocks in Angola, with plans for future development.

In June 2016, President José Eduardo dos Santos implemented a major change by replacing the entire Sonangol board and appointing Isabel dos Santos as the chairwoman. This decision aimed to enhance transparency and corporate governance standards but was criticized for potential corruption and nepotism. Subsequently, in November 2017, the newly elected Angolan President João Manuel Gonçalves Lourenço removed Isabel dos Santos from her position and appointed Carlos Saturnino Guerra Sousa e Oliveira as the new chairman. It was later revealed that dos Santos transferred $38 million of company funds to a dubious Dubai-based entity after her dismissal.

In February 2019, a new governmental agency named the National Oil, Gas and Biofuel Agency (ANPG) assumed regulatory control and promotion responsibilities over Angola's petroleum industry, taking these functions away from Sonangol. The ANPG gained authority over awarding licenses for petroleum exploration, development, and production, effectively overseeing Sonangol's activities in this sector.

Sonangol executed a significant transaction in April 2021, selling its energy trading firm, Puma Energy, to Trafigura for $600 million. Simultaneously, Sonangol acquired Puma's assets in Angola for the same amount, including the Puamngol chain of gasoline stations, as well as airport and marine terminals.

By 2021, Sonangol demonstrated notable financial growth, with a 38% increase in revenues, totaling $8.5 billion in turnover compared to the previous year's $6.1 billion. The company employed a workforce of around 13,000 individuals.

Sonangol Group's mission was to manage and maximize the value of Angola's petroleum and natural gas resources. It aimed to ensure sustainable exploration, production, and distribution while fostering economic growth, energy security, and social development for the nation and its people. The company pursued innovation, transparency, and responsible practices in the energy sector to create lasting benefits for Angola's present and future generations.

Sonangol Group's vision was to become a leading global player in the energy sector, recognized for its excellence in managing petroleum and natural gas resources. The company aimed to leverage its expertise, partnerships, and technological advancements to contribute significantly to Angola's economic diversification, energy self-sufficiency, and overall development. Through innovation, sustainable practices, and responsible operations, Sonangol aspired to be a driving force in shaping a prosperous energy future for Angola while maintaining its commitment to environmental stewardship and social progress.

Sonangol Group offered a comprehensive range of products and services within the energy sector, focusing primarily on petroleum and natural gas. Its diverse portfolio encompassed:

Exploration and Production: Sonangol was involved in the exploration, development, and production of petroleum and natural gas resources in Angola. It utilized advanced technologies and strategic partnerships to locate, extract, and bring these valuable resources to market.

Refining and Distribution: The company operated refineries to process crude oil into refined petroleum products such as gasoline, diesel, and jet fuel. It played a crucial role in ensuring a stable supply of these products to meet domestic and international energy demands.

Retail and Distribution: Sonangol managed a network of retail outlets, including gasoline stations, to distribute petroleum products to consumers. This network contributed to fulfilling the energy needs of individuals, commercial enterprises, and transportation services across Angola.

Logistics and Infrastructure: The group managed critical infrastructure, including terminals, pipelines, and storage facilities, which were essential for transporting and storing petroleum and natural gas products efficiently and securely.

Technology and Innovation: Sonangol invested in research, innovation, and technology to enhance its operational efficiency, optimize resource recovery, and promote sustainable practices within the energy industry.

International Partnerships: The company engaged in collaborations with international energy companies, leveraging expertise and resources to foster development and growth within Angola's energy sector.