Sonangol

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Type Parastatal
Founded 1976
Headquarters Luanda, Angola
Key People Manuel Vicente (President)
Revenue US $34 billion (2011)[1]
Net Income US $3.2 billion (2011)[2]
% change over previous year +32%[3]
Website www.sonangol.co.ao

Global Snapshot

Sonangol U.E.E was established in 1976 following the nationalisation of "Angol", the oil group that Angola's new rulers inherited from the Portuguese following independence. Sonangol U.E.E. became Sonangol E.P. in 1999.[4][5] The company claims that, despite having the government as its sole shareholder, Sonangol has always been governed as a private company and is under strict performance standards to ensure efficiency and productivity.[6]

Sonangol E.P. engages in research, exploration, and production of oil and gas. Its activities include prospecting, development and refining of hydrocarbons and their derivatives. The company also operates a network of gas and service stations and operates an airline, which provides air transportation to the oil industry through a fleet of airplanes and helicopters in Africa and internationally.[7] It also has an expansive portfolio of interests in everything from infrastructure, banking and real estate to a football team.[8]

In 2012 Sonangol was producing around 100,000 barrels per day (bpd) but was looking to increase this fivefold to 500,000 bpd.[9]

According to a 2011 Organisation for Economic Co-operation and Development (OECD) report, the revenues earned from oil and gas sales have made Sonangol the second largest company in Africa in terms of turnover and profits. The report also claims that Sonangol has also been behaving like a sovereign wealth fund (SWF), using oil-based funds for investments in other countries, such as investments in West African iron ore mines.[10] Transparency watchdog Revenue Watch has criticised the complexity and secrecy of Sonangol, which does not divulge all financial relations and sub-contracting procedures for assigning work.[11]

Official Accreditations and Global Perceptions

EITI Supporter Status

As of December 2011, Sonangol was not a supporting company of the EITI.

UN Global Compact

As of December 2011, Sonangol was not a participant in the UN Global Compact.

CSR Review

According to Sonangol's official website, the following are the highlights of the company's corporate social responsibility activities:

  • Over 36 social projects implemented in Cabinda province. In 2003 more than $6 million was spent in areas related to public health, education, culture, sports and agriculture.
  • Sponsorship of the 'Sonangol Literature Award'
  • Since 2002 the company has allocated $2 million and 2000 employees to the implementation of their QHSE (Quality, Health, Safety and Environmental Impact) policy.[12]

External Coverage

  • In December 2011 CEO Manuel Vicente was re-elected for another term, quashing media speculation that he may succeed Angolan President Jose Eduardo dos Santos. During the 12 years Vicente serves as CEO, Angola more than doubled its output and was expected to boost oil production to over 2 million barrels per day (bpd) by 2012 and possibly overtake Nigeria's spot as the continent's largest producer.[13]

Global Operations by Country

Iraq

Main article: Sonangol Operations in Iraq

References

  1. Sonangol: An economic octopus”, Sonangol, 18 July 2012.
  2. Sonangol’s $3.2bn profit shows NNPC’s model as broken”, Business Day, 12 December 2012.
  3. Sonangol’s $3.2bn profit shows NNPC’s model as broken”, Business Day, 12 December 2012.
  4. Our History”. Sonangol, retrieved 19 December 2011.
  5. Sonangol: An economic octopus”, Sonangol, 18 July 2012.
  6. About Sonangol EP”. Sonangol, retrieved 19 December 2011.
  7. Sonangol EP”. Bloomberg Business Week, retrieved 19 December 2011.
  8. Sonangol: An economic octopus”, Sonangol, 18 July 2012.
  9. Sonangol: An economic octopus”, Sonangol, 18 July 2012.
  10. “OECD Sonangol EP”. OECD Publishing, 3 May 2011, p70.
  11. Angola: Transparency Snapshot”, Revenue Watch Institute, retrieved 19 December 2012.
  12. Society and Environment”. Sonangol EP, 19 December 2011.
  13. “OECD Sonangol re-appoints Vicente as CEO for another term”. Reuters, 13 December 2011.

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