Angola’s debts to Western oil companies reach $1B: Report

The bill is a sign of financial trouble at state oil giant Sonangol due to underinvestment in declining offshore fields.

Angola has accumulated around $1bn in debt to Western oil companies operating its oilfields, with the bill prompting the African country’s recently launched sale of stakes in its flagship offshore blocs, three industry sources told Reuters news agency. The magnitude of the debt, built up over several years, is a sign of deepening financial woes at state oil giant Sonangol, one of Africa’s largest companies, due to underinvestment in declining offshore fields which worsened during the COVID-19 pandemic. It comes as global companies rethink their presence in high-cost ventures worldwide in order to meet their climate targets more quickly,  and it could make Angola – with its ageing and complex offshore fields – a less attractive prospect.