Sonangol calls for moratorium on debts

LUANDA, November 24, 2016 – Angola’s Sonangol has reportedly requested a moratorium on debts until year-end 2016, local sources were quoted as saying on Wednesday.

The all-powerful state entity has amassed debt with operators and contractors alike, with its deferred payments ranging from hundreds of thousands of dollars to well into the millions, sources told Reuters on the condition of anonymity, adding that Sonangol has outstanding debs with the likes of Chevron, Eni, ExxonMobil and Total.

The report comes amidst a company shake-up initiated by Sonangol head Isabel dos Santos, daughter of reigning President José Eduardo dos Santos. Measures enacted by dos Santos at Sonangol have not been without criticism, with some pointing to the decision to direct oil sales revenue to the government as hindering timely payments. Government pay outs require approvals, whereas Sonangol would previously pay its bills directly.

In October, reports appeared in local media that Chevron had demanded immediate payment of some USD 300 million. In a statement released as a response, Sonangol said that while debt constituted a “perfectly normal situation in the Angolan oil industry,” it had reached a deal with the US major on a payout arrangement.

Read our latest insights on: