Angola to complete privatisation of Africa’s giant oil company

The Angolan government has said plans are underway to complete the privatisation of its national oil company, Sonangol.

The firm, which is the second largest oil producer in Africa, will be privatised by 2026, the Institute for Management of State Assets and Stakes (IGAPE) said on Wednesday.

IGAPE chairperson Patricio Vilar said Sonangol’s privatisation will take a bit long to finalise because of its “vast heritage in the world.” Sonangol produces almost 2 million barrels per day.

“The privatisation will not be finalised this year. However, the process, which is in its second phase, will end by 2026,” Vilar said during a press briefing in the capital Luanda on Wednesday.

IGAPE says it received audit reservations about some operations at the firm. Vilar said that the highlighted concerns will be addressed before the company’s eventual sale.

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Representatives of IGAPE visited Sonangol's head office on Wednesday to “understand the dynamics of the company.”

Sonangol chairperson Sebastiao Martins says the firm is open to scrutiny and regulation by the government as the privatisation process continues.

The sale of government shares in the company began in 2021, when the state placed 30 percent of its stake on offer.

In October 2021, the Angolan government said Sonangol’s privatisation would “create a lean and internationally competitive oil and gas operator.”

Sonangol was created in 1976 following the nationalisation of Angol. The company is the sole dealer in liquid and gaseous hydrocarbons in Angola.

The firm, with 13,000 employees, has an asset value of $51.5 billion, according to the Sovereign Wealth Fund Institute.