Angola’s Institute for Management of State Assets and Stakes (IGAPE) has indicated that the Government plans to complete the privatization of the country’s National Oil Company (NOC) Sonangol by 2026.
The privatization process will be carried out in several stages and will result in the Government’s divestment of its 30% stake in the NOC.
The announcement was made by IGAPE Chairperson Patrício Vilar on 21 June.
The sale of government shares in Sonangol initially began in 2021 and is poised to lead to the development of an internationally competitive oil and gas operator for the southern African country.
“This privatization will not be finalized this year,” Vilar stated during a press briefing in Luanda, adding, “However, the process, which is in its second phase, will end by 2026.”
One 21 June, representatives from IGAPE visited Sonangol’s head office to evaluate the dynamics of the company, which is responsible for the production of approximately two million barrels per day.
Sonangol’s Chairperson Sebastião Martins highlighted that the company is open to audit reservations and regulation by the Government as the privatization process continues.
To increase private sector involvement, attract new investments, and boost economic growth, Angola’s Government launched its Privatization Program in 2019, with the aim of privatizing 178 companies and assets in the country by 2026.
To contribute towards the country’s privatization efforts, Sonangol divested its 10% stake in Angolan banking company Banco BAI during the initial public offering of shares in June 2022.
With an asset value of approximately $51.5 billion, the firm boasts over 13,000 employees, and serves as the largest oil producer in sub-Saharan Africa.