Africa Oil & Gas: Sonangol secures only 85% of revenues target in 2017

Sonangol buildings
SONANGOL Headquarters

Angolan oil company Sonangol has secured about € 5.750 million in tax revenue from crude oil exports in 2017, equivalent to 85% of the target set by the government.

According to data from the Ministry of Finance’s monthly reports on revenues from oil sales compiled by Lusa, between January and December Angola exported 595,604,870 barrels of crude oil, about 70 million barrels below that estimated in the General State Budget ( OGE) of 2017.

In terms of tax revenues from the sale of oil, the Angolan government had to raise 1,695 billion (9,100 million euros at the exchange rate on December 31) and secured 1,615 billion kwanzas (8,670 million euros at the rate of exchange rate as of December 31) in 12 months, which is why the budget target, for example, was also missed by around 400 million euros.

Specifically for Sonangol, which was led by Isabel dos Santos between June 2016 and November 2017, the Government stipulated in the OGE a forecast of matching with tax revenues of 1.216 trillion kwanzas (6,527 million euros at the exchange rate of 31 of December), as concessionaire rights.

However, this revenue collected by Sonangol, according to the latest data from the Ministry of Finance, was around 1.063 billion kwanzas (5.750 million euros at the December 31 exchange rate).

Sonangol thus failed to meet the government’s target of almost 800 million euros.

On November 16, Angolan President João Lourenço asked the new administrators of Sonangol, after the exoneration of Isabel dos Santos, to “take good care” of the state oil concessionaire, as Angola’s “golden egg hen” .

Less than 24 hours after the Chief of Staff announced the exoneration of the board of directors of the National Fuel Company of Angola (Sonangol), the head of state inaugurated the new state oil company team on that day led by Carlos Saturnino.

“Continue to be, for our economy, the chicken of golden eggs. That is why we make this appeal, so that they take good care of it,” said João Lourenço.

Angola is currently the second largest oil producer in Africa, behind Nigeria, with 1.6 million barrels of oil, a product that weighs more than 95% on Angolan exports.

The former Petroleum Secretary Carlos Saturnino was appointed as the new chairman of the Sonangol board of directors. In that position, the head of state took over Paulino Jerónimo, who until September was president of the executive committee of Sonangol.

 

 

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