Chinese oil company Sinopec on the lookout for Sonangol’s position at Galp

  • ECO News
  • 23 November 2018

Bankers and lawyers are looking for buyers for Sonangol's stake at the Portuguese oil company, Galp. Reportedly, there is interest from Chinese oil company, Sinopec.

It has been almost a week since the Angolan President, João Lourenço, revealed its intention to sell the shareholding position owned by the Angolan state in the Portuguese oil company. This sale is part of many other assets the Angolan State is planning to sell, and there is already at least one investor interested in taking that position in Galp, according to the Portuguese Newspaper, Jornal Económico (paid access).

JE explains that many bankers and lawyers had been already looking out for potential investors since the news came forward. During their quest, they might have encountered one potential investor: Sinopec, a Chinese oil company, which reportedly has already assumed a position to takeover Sonangol’s shareholding position at Galp.

Sonangol detains an indirect quota at the Portuguese oil company, Galp, through Esperanza, part of Amorim Energia. Amorim Energia is a holding, which is 55% owned by Amorim, and 45% by Esperanza (60% of which belongs to Sonangol, and 40% to Isabel dos Santos).

In the end, this is translated into Esperanza holding 15.75% of Galp’s assets,  which accounts for €2.2bn at current market values.

The Angolan President announced, in the interview he gave to Expresso last week, that the “Angolan administration decided to remove their position from any ventures which have nothing to do with the Angolan core business ideas and needs, which is the case of the shareholding position Sonangol holds at Galp”. He also noted he has “nothing against Amorim group”.