ANGOLA - Oil & Gas History.

From the nationalisation of ANGOL in 1976, two companies were formed: Sonangol UEE and Direccao Nacional de Petroleos. ANGOL Sociedade de Lubrificantes e Combustiveis Sarl, which was founded in 1953 as a unit of the Portuguese company SACOR, marketed and distributed fuels, lubricants and LPG in Angola. Decree 52/76 instituted Sonangol as a state-owned company whose mission was the management of hydrocarbon resource E&P in Angola. Despite having the government as the sole shareholder, it says, "Sonangol has always been governed as a private company and is under strict performance standards to ensure efficiency and productivity".

After the incorporation of Sonangol, a management committee was established to create the necessary infrastructures for the company to start developing its business. The management committee was later converted into a board of directors.

In the aftermath of independence several oil firms abandoned Angola for one reason or another, leaving behind infrastructures and former employees. Sonangol bought the premises of Texaco, Fina and Shell and through an agreement acquired those of Mobil. Sonangol absorbed former employees of oil companies which once operated in Angola. The following is a chronology of the main events:

1976: Establishment of Sonangol UEE.

1983: Institution of the first international unit, Sonangol Ltd in London, England.

1991: Attribution of the first oil concession in deep waters on Block 16.

1992: Establishment of Sonangol P&P as an oil company.

1999: Sonangol UEE becomes Sonangol E&P.

2003: Sonangol begins operating as an oil company with the grant of offshore Block 3.

Lack of qualified nationals for the oil industry forced Sonangol to concentrate on the training and professional development of its employees. The first group of students was sent to Italy with scholarships co-aided by ENI. A larger group later went to Algeria. The first sponsored students graduated and returned to Angola by the end of 1970s. They became the driving force behind a more modern Sonangol. Focusing on diversifying its activities, Sonangol has developed joint-ventures (JVs) and set up companies to promote the social development of Angola and the expansion of the Group. More than 30 units and JV companies are now part of Sonangol Group. With a mixed economic status, Sonangol has expanded into other activities and today is self-sufficient in many things. With headquarters in Luanda, Sonangol has representations in the whole country. Overseas the company has offices in Brazzaville, Congo; Hong Kong, China; Houston, USA; London, England; and Singapore.

In 2006 having celebrated its 30th anniversary, Sonangol has built a solid reputation in the oil industry in Angola and abroad. This resulted from close relationships with the oil companies which operated, or which have interests and investments, in Angola. During three decades Sonangol has expanded into a group of integrated companies and in the process became Angola's leading distributor of refined products and promoter of social and human resources development.

All companies of Sonangol Group are independent business units with their own management structure. They report to the Administration Council. Sonangol's E&P unit encompasses all activities related to oil and gas E&P.

Downstream units include refining, marketing, distribution and shipping companies.

Whenever required, Sonangol Holding provides its subsidiaries with financial, manpower administration and service resources for support.

The Administration Council is the primary decision-making body in matters of overall strategy and the authorisation for investment expenditures for the Group. It is the Administration Council which determines corporate strategies regarding performance, rentability and international expansion of Group Sonangol.

Angola's crude oil marketing and/or trading is the core activity of Sonangol's units in London, Houston and Singapore.

Oil Derivatives: The grease and lubricants of the group's brand NGOL are produced and marketed by Sonangol Distribuidora. This unit also retails propane tanks, heating appliances and car care products.

Sonangol's SonAir provided air transport to the oil industry through a fleet of planes and helicopters. SonAir also offers destinations to some countries in Africa and a direct passenger and cargo flight to Houston, USA (Houston Express).

Maritime transportation is divided into two units: Sonangol Shipping which does the maritime transport of crude oil, and Sonaship which transports petroleum products and provides refuelling services to vessels in Angola's ports or within its maritime shoreline.

Telecommunication services for Sonangol Group are carried out by MSTelcom which has three types of communication: radio transmission, microwave telecommunications and national and international satellite VSAT communications.

Essa provides professional training related to work safety in the oil industry.

Sonangol Group has most of its insurance, risk management and retirement funds consolidated in a subsidiary AAA - Financial Services: Financeiros.

SonAsia: SonAsia was established in early 2004 and is based in Singapore. Its activity is the trade of Angola's crude to the Asian continent.

AAA was established in January 2001 with HQ in Luanda. Its activity is risk management for the oil industry, insurance brokerage and pension fund management.

Sonangol Shipping: transports crude oil. Its fleet of oil tankers have national and international routes.

Sonangol Congo was established in 1998 with HQ in Kinshasa. Its focus is on downstream activities - marketing, storage, transportation and import of refined oil products.

Sonangol in Cape Verde: Since 1997 Sonangol has been a shareholder in Empresa Nacional de Combustiveis, SARL (ENACOL) in Cape Verde. This company is marketing oil products and providing related services.

China Sonangol International Holding (CSIH) was established in mid-2004 and has its HQ in Hong Kong. Its business is oil and gas E&P.

Sonangol is a shareholder in two banks: Banco Africano de Investimentos (BAI) and Banco do Comercio e Industria (BCI). BAI is as full service bank. BCI was recently privatised.

Kwanda Logistical Support offers support for the Kwanda oilfield.

Sodimo is a real estate management subsidiary.

Sonagas is a gas E&P subsidiary.

Sonadiets provides corporate infrastructure.

Sonamer provides deep drilling.

Sonamet is a petroleum platform manufacturing unit. Its operations include metal structure fabrication 

Sonangol Distribuidora distributes petroleum products including gasoline and gasoil.

Sonasurf and Sonatide provide offshore oil work logistics.

Sonawest provides seismic data services.

Sonils is a logistical support unit - http://www.sonils.co.ao/

Marketing of fuels in Angola is done by Gabinete de Operacoes de Comercializacao. Angola now has one refinery in Luanda with a capacity of 39,000 b/d, compared to domestic demand in 2006 of 62,000 b/d. Sonangol says demand for petroleum products in Angola will eventually increase by 500%; hence the importance of its project to have a 200,000 b/d refinery built in Lobito, in Benguala Province, and the company to run it is Sonaref.

Food Retail and Catering - as a shareholder in Sodispal (51% of stocks) and in WAPO Angola (35% of stocks) Sonangol is involved in food retail, catering and agriculture.

Civil Engineering - To participate in the much needed reconstruction of the country, Sonangol is a shareholder in Bricomil (12.5% of stocks).