Sonangol

Stock performance

History

Sonangol was established as Angola's state oil company shortly after independence from Portugal, and grew into the dominant force in Angola's oil industry even as the country fought a prolonged civil war from 1975 to 2002, with oil revenue continuing to flow throughout the conflict and funding both government operations and, controversially, the war effort of various factions.

Business model

Sonangol explores for, produces, and manages Angola's offshore oil reserves, both directly and through partnerships with international oil majors including Chevron, ExxonMobil, and China's Sinopec, channeling the overwhelming majority of Angolan government revenue through the company.

Market position

Sonangol is the dominant oil company in Angola, one of Africa's largest oil producers, and the company's offshore deepwater fields represent some of the most significant oil developments on the African continent, drawing major international oil-company investment.

Country impact

Sonangol is by far the most important company in Angola's economy, generating the overwhelming majority of Angolan government revenue and export earnings, and the company's management and governance have been subject to significant reform efforts and international scrutiny given historical concerns about transparency and mismanagement.