Sonangol releases statement on oil investment and operations after meeting President Lourenço

14629654085 0682719a18 zSonangol and several oil operators, have met with João Lourenço, president of Angola, and released a joint statement identifying concerns in regard to the development of the oil sector

In the statement, Sonangol and the other operators cited multiple concerns, including identifying excessive bureaucracy as being unfavourable to overall development of one of Africa's biggest oil economies. Additionally, the statement identified the management of the concessionaire; the review of old approval processes; and the replacement of the former CEO who oversaw the concessionaire's management and the relationship with its operators as areas for improvement. To this end, the signatories to the statement said that steps had been taken in this regard with the functions now being carried out by two directors "who guarantee full commitment to the best management practices and the appropriate treatment of the challenges to the sector".

The statement was upbeat about the meeting with the president, referring to "constant and transparent dialogue between the operators, the company [Sonangol] and the government" and cited an international roadshow which was held in July this year and an agreement with operators to increase the competitiveness of the national oil industry as evidence of the industry taking steps in the right direction. 

"As a result, production costs per barrel fell by 48 per cent from 2014 to 2016, and cost-cutting and investment efforts led by Sonanagol resulted in additional savings of US$1.7bn in 2017," the statement said.

Investment opportunities were also discussed with the president: "Despite the reduction of recent investment in Angola, which is no more than a reflection and consequence of reduced investment worldwide, there are still very interesting opportunities in both oil and gas, which is enough to keep production levels attracting profitability for the long-term future."

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