logo

Angola's state-run oil company fires subsidiary's board

PUBLISHED: Wed, 21 Dec 2016 11:00:39 GMT

Share

LUANDA – The head of Angola’s state oil company Sonangol has fired the executive committee of subsidiary Sonangol Exploration and Production, the company said on Tuesday.

Sonangol’s chief executive Isabel dos Santos, the billionaire daughter of President Jose Eduardo dos Santos, has told the Financial Times she plans to split the company into three units.

Dos Santos has said she wants to improve transparency at Sonangol, long been regarded as one of the most opaque institutions in Africa.

Sonangol cited “management weakness” and financial concerns for the dismissals.

ADVERTISING

“This decision is in line with the stance of the new Board of Directors of the oil company to be consistent with the principles of rigour and transparency,” its statement said.

Sonangol Exploration and Production is also involved in prospecting.

The Financial Times quoted Dos Santos as saying Sonangol would be divided into three units: exploration and production, logistics and a division that handles its concessions to international oil companies. Non-oil interests will be placed in a fund.

Sign Up for Our Newsletter Daily Update

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.

Angola, a member of OPEC and currently Africa’s top oil producer and third largest economy, has been hit hard by the slump in global crude prices. Oil export revenues account for more than 90 percent of its foreign exchange revenues, which critics say have been squandered and siphoned for decades.

 (Reporting by Herculano Coroado; Writing by Ed Stoddard; Editing by Ruth Pitchford)