Sonangol launches sale of interests in 8 blocks

Angolan state oil company Sonangol has announced the partial sale of its interests in eight blocks, aiming to begin a competitive bid process in Q2.

The NOC revealed the move in a statement on its website, noting that it would respect pre-emptive rights of its block partners.

The sale is in line with Sonangol’s efforts to reduce capex. “We have been forced to make a revision of our budget to ensure that we could move forward with the projects that we consider to be critical,” chairman Sebastião Gaspar Martins told The Energy Year in September.

While the online statement did not identify the block interests up for sale, a source told Upstream Online they include blocks 05/06, 15/06, 27, 31 and 32.

Block 15/06 is operated by Eni, which in the past month has announced a 250-million-barrel find in the block and a USD 7-billion spending plan together with partners in Angola.

For more on Eni’s upstream plans in Angola, read our latest interview with managing director Matteo Bacchini.

On Friday, Sonangol announced it would sell Trafigura its 31.78% stake in Puma Energy in a deal valued at USD 600 million.

As part of the deal and for the same value as the stake sale, Sonangol acquired Pumangol’s retail network of 79 fuel stations; airport terminals in Luanda, Catumbela, Cunene and Lubango; the Porto Pesqueiro Storage Terminal in the Bay of Luanda; and the company Ango Betumes.

For more on Sonangol’s current strategy, read our latest interview with chairman Sebastião Gaspar Martins.