Browsing: Sonangol

• During the last three decades, Angola has established itself as a top-tier destination for big oil and gas companies.
• Natural gas is an essential intermediary in the energy transition, generating fewer emissions than petroleum and coal products.
• Angola’s regulator, the ANPG, aims to attract investment from sources other than the country’s traditional oil and gas producers.

While foreign oil firms steadily abandon African hydrocarbon resources and transfer capital spending to alternate energy sources, Africa is experiencing output reductions across significant assets. The fall in oil and gas output is primarily because Integrated Oil Companies (IOCs) are affected by lobbies urging them to withdraw from fossil fuels and invest in renewables.

Understanding the Decline in fossil fuel funding

Since loans are becoming more costly, it is becoming more difficult to borrow funds for investment in exploration, development, and production (E&P). Some financial firms are beginning to limit capital accessible for these …

Angola, one of the top oil-producing countries in Africa is now betting on reviving its oil industry and jumpstarting its oil-dependent economy, which has been in recession for five consecutive years.

According to multiple reports, the government plans to sell as much as 30% of Sonangol, the economic engine of Angola’s oil-dependent economy.

According to Baltazar Miguel, a member of Sonangol’s board, the stake is worth about $6.4 billion, which will be sold after restructuring the company to create more transparency and root out corruption.

Angola was Africa’s top oil producer six years ago when oil prices crashed in 2015-2016, slashing oil-producing countries’ revenues and forcing international oil companies to reconsider their exorbitant spending plans made at $100 oil.

After the price crash that began in 2014, Angola is now the third-biggest oil producer in Africa, behind Nigeria and even behind conflict-ridden Libya.

Nunes Junior, who’s in charge of reviving …

Investment banking fees in Sub-Saharan Africa reached an estimated US$128.2 million during the first quarter of 2020, a decline of 15 per cent from last year’s strong start.

Advisory fees earned from completed mergers and acquisitions (M&A) transactions generated US$33.5 million, down 38 per cent year-on-year, while syndicated lending fees declined 47 per cent to US$35.7 million.

The authors of the report, Refinitiv, note that Equity capital markets underwriting fees more than tripled to reach US$36.7 million, a first quarter total only exceeded twice since the company’s records began in 2000.

China’s Belt and Road Initiative, AfCFTA to anchor Africa’s economy

Bond underwriting fees increased 20 per cent to US$22.3 million, again the third-highest first quarter fee total since our records began.

Almost one-quarter of fees in the region during the first quarter of 2020 were earned from government and agency deals.  Almost two-thirds of all fees were generated in …