Angolan oil company Sonangol and Portuguese energy firm Galp announced plans in June 2024 for Galp to resume upstream investment in Angola, focusing on exploration and production. Sonangol Chairman Sebastião Gaspar Martins said the move follows Galp’s February 2023 sale of its existing Angolan upstream assets to Somoil, marking a strategic return to the country’s oil sector in partnership with Sonangol.
Sonangol Chairman and CEO Sebastião Gaspar Martins said at the “Doing Business Angola” conference in Lisbon in June 2024 that Galp intends to return to upstream investment in Angola in partnership with Sonangol, focusing on exploration and production. Martins described the move as the start of a “new cycle of investment” by Galp in Angola after the Portuguese energy firm sold its existing upstream assets in the country in February 2023.
Galp’s February 2023 divestment involved selling all its upstream stakes in Angola to Sociedade Petrolífera Angolana S.A. (Somoil) for about $830 million, net of capital gains taxes.
The transaction included approximately $655 million paid at completion and up to $175 million in contingent payments scheduled for 2024 and 2025, linked to Brent crude prices. The assets sold comprised a 9% stake in Block 14, 4.5% in Block 14K, 5% in Block 32, and one project under development. Regulatory approvals were completed in the second half of 2023, with the Angolan National Agency for Petroleum, Gas and Biofuels (ANPG) confirming the conclusion of the deal for the three offshore blocks. This sale effectively ended Galp’s decades-long presence in Angola’s oil production sector.
Speaking at the EPIC SANA Lisboa Hotel during the conference hosted by Forbes África Lusófona and Jornal Económico, Martins said a Galp delegation recently visited Sonangol and expressed interest in resuming upstream investment. He framed Galp’s return as a signal of confidence in Angola’s investment opportunities, stating that “Angola continues to be a good place to invest” in oil and gas. Martins also highlighted the historically close relationship between the two companies, describing Galp as “practically a sister company” to Sonangol, given their longstanding cooperation in exploration, production, and broader energy ties between Angola and Portugal.
No specific details on the blocks or projects Galp plans to pursue have been disclosed, nor have investment amounts or timelines been made public. The information about Galp’s renewed interest is based solely on Martins’ on-the-record statements, with no direct public comments from Galp management or regulatory filings regarding new upstream activities. Portuguese business media have noted the close ties between Sonangol and Galp, which also include Sonangol’s stakes in Galp and the Portuguese bank Banco Comercial Português (BCP).
Martins also confirmed that Sonangol remains committed to its plan to float up to 30% of its capital on the stock exchange, describing it as an ongoing strategic objective. However, he declined to provide a specific timetable for the initial public offering (IPO), emphasizing that it will occur “at the right moment” and will not be rushed by external pressures. He made clear that the IPO will not take place in 2024, effectively confirming a further delay. Sonangol has linked the timing of the listing to market conditions and internal readiness, with formal communication to be issued once a decision is made.
The announcements about Galp’s return and Sonangol’s IPO plans were made together, suggesting they are part of Sonangol’s broader strategy to modernize its operations, attract international capital, and reinforce its role in Angola’s energy sector. Martins pointed to investment opportunities within Sonangol’s portfolio that foreign companies could pursue, inviting business leaders at the conference to consider projects in Angola. He also mentioned Angola’s energy-independence strategy, implying that partnerships with companies like Galp are intended to support both export revenues and domestic energy security.
Previous cooperation between Sonangol and Galp has included joint participation in offshore natural gas exploration consortia in northern Angola, where Galp held a 10% stake and Sonangol Gás Natural held 40%, alongside other partners such as ENI, Gas Natural/Repsol, and Exem. The recent sale of Galp’s upstream stakes to Angolan entities such as Somoil and Etu Energias, followed by plans for new projects with Sonangol, reflects a reconfiguration rather than a withdrawal of Portuguese capital from Angola’s oil and gas sector.
As of June 2024, no official investment figures, project start dates, or specific block allocations have been publicly announced for Galp’s planned new upstream activities. It remains unclear whether the new projects will focus on oil, natural gas, or a combination of both. Sonangol’s statements provide the only current public indication of Galp’s intention to reengage in Angola’s upstream sector.
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