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Project Insights

Sonangol hit by Angola’s ‘new economic reality’

Currency and debt problems are combining with low oil revenues to create serious difficulties for Angolan state operator Sonangol Currency and debt problems are combining with low oil revenues to create serious difficulties for Angolan state operator Sonangol.
By Miriam Malek 31 August 2016 Middle East & Africa / Companies & Finance 0 21729
Angola’s LNG plant. It has struggled with maintenance problems since it started up. (BP plc)

Sonangol, Angola’s state-owned oil and gas company, is struggling to cope in the country’s bearish economic climate. Projects are being delayed or suspended entirely as a result of a currency crisis and poor revenues from oil.

Sonangol suspended work at its 200,000 barrel per day Lobito refinery on 19 August, citing a ‘new economic reality’ in Angola.

The news came in the wake of Sonangol’s withdrawal from several other major projects. The company announced last week it was pulling out of acquiring gas blocks 20 and 21...