Angola is set to become a key battleground for the world’s biggest commodity traders as Sonangol, the African country’s state-controlled oil company, seeks to inject much greater competition into fuel imports. (Financial Times).
The move will be a blow to Trafigura, the Swiss-based commodity trader that has enjoyed a near-monopoly over the supply of fuel to Angola for more than a decade.
Angola, which has become one of Africa’s largest energy markets since the end of a long-running civil war in 2002, is attractive for oil traders because the country lacks local refining capacity and has to import about 80 per cent of its fuel.
Isabel dos Santos, chair of Sonangol, told the Financial Times that the company was planning to overhaul the way it buys petrol, diesel and cooking gas.
She said Sonangol, which has been hit hard by the oil market downturn and is scrambling to raise cash, would hold tenders for all its imports next year in an effort to reduce its fuel bill and boost profits.
“My vision is to make Sonangol very profitable,” said Ms dos Santos, the billionaire daughter of José Eduardo dos Santos, Angola’s president.
Story courtesy of the Financial Times.