Sonangol Sinopec International
| Company type | Joint venture |
|---|---|
| Industry | Petroleum |
| Founded | September 2004 |
| Founder | Sinopec Overseas Oil & Gas Limited, China Sonangol International Holding Limited, Dayuan International Development Limited |
| Headquarters | Hong Kong , Hong Kong |
Area served | Angola |
Key people | Manuel Vicente (CEO of Sonangol), Wu Yang (stakeholder), Lo Fong Hung (director), Wang Xiangfei (CFO) |
| Products | Oil and gas interests in offshore oil blocks |
| Owner | Sinopec Group (via SOOGL), Sonangol (indirectly via CSIH), private stakeholders of Dayuan International Development Limited |
Sonangol Sinopec International Limited (SSI) is a petroleum enterprise formed in 2004 through a Chinese-Angolan partnership, operating under the Hong Kong-based 88 Queensway group. The company primarily engages in oil and gas activities within Angola by holding interests in multiple offshore oil blocks.
Establishment
SSI was created in September 2004 as a joint venture involving Sinopec Overseas Oil & Gas Limited (SOOGL), a subsidiary of the Sinopec Group registered in the Cayman Islands, alongside two other entities within the 88 Queensway group: China Sonangol International Holding Limited (CSIH), which had been established just one month prior without any assets, and Dayuan International Development Limited (formerly known as Beiya). SOOGL possessed a majority share of 55%, while Dayuan and CSIH held 31.5% and 13.5%, respectively.
Although Sonangol, led by CEO Manuel Vicente, played a significant role in initiating the partnership, its direct involvement was limited to an indirect stake of 4.05%, derived from its 30% ownership in CSIH. The remaining ownership was divided between the Chinese government and private stakeholders of Dayuan—namely businessman Wu Yang and New Bright International Development. New Bright was under the control of Lo Fong Hung and Veronica Fung Yuen Kwan, wife of Sam Pa, a Chinese-born Angolan citizen with extensive connections in both China and Angola that facilitated SSI’s initial agreements. Hung serves on SSI’s board as a director, while her spouse Wang Xiangfei holds the position of chief financial officer. Both Yang and Pa are reported to have affiliations with Chinese intelligence agencies and maintain close links to Angolan government figures, including executives at Sonangol.
SSI’s Role in the Lobito Refinery Project
In 2006, Sonangol selected SSI to assist in financing an oil refinery planned for Lobito, Angola, with an estimated cost of US$3 billion. The project aimed to employ approximately 8,000 workers and process up to 240,000 barrels daily. Despite these plans, no formal agreement was reached between Sinopec and the Angolan authorities. Sinopec intended for around 80% of the refinery’s output to be exported to international markets, even though Angola faced domestic fuel shortages. Manuel Vicente highlighted the importance of local supply by stating that constructing a refinery solely for export purposes was untenable, whereas Chinese officials showed little interest in this local focus. Ultimately, SSI did not engage in the project; construction only commenced in 2015 but was suspended due to financing difficulties until resuming in 2021.
Francisco Gonçalves Bribery Controversy
In connection with the 2016 Panama Papers disclosures, SSI vice president Francisco Gonçalves was implicated in a bribery scandal involving Unaoil, a Monaco-based consultancy described as a "corruption factory." Leaked emails indicated that Gonçalves accepted bribes totaling approximately US$3.5 million to secure advantageous contracts with Swiss equipment supplier Sulzer on behalf of Sonangol Sinopec. This incident underscored governance and compliance vulnerabilities within SSI’s executive ranks as well as its parent organization.
Operations
SSI primarily holds non-operating equity interests in offshore oil concession areas along Angola’s coastline. According to Decree-Law No. 5/01, Sonangol E.P. acts as Angola’s national oil concessionaire responsible for granting equity stakes across all petroleum production zones.
| Oil asset | SSI stake (%) | Acquisition year | Operated by | Reserves (million barrels) | Known investment (US$ billions) | Production start | Major well | Depth at drill sites (meters) |
|---|---|---|---|---|---|---|---|---|
| Block 18 | 50 | 2004 | BP | 1,000 | 1.4 | October 2007 | Greater Plutonio | 1,200-1,500 |
| Block 15/06 (SSI 15) | 25 | 2006 | Eni S.p.A. 35%, Sonangol P & P 15%, TotalEnergies 15%, Falcon Oil 5%, Gemas 5% | 1,500 | 1.1 | September 2021 | Cabaça Norte | 500 |
| Block 17/06 (SSI 17) | 27.5 | 2006 | TotalEnergies 26%, Sonangol E.P. 24%, Somoil 10%, Falcon Oil 5%, ACR 5%, Partex 2.5% | 1,000 | 1.1 | October 2009 | Gardenia and Begonia | 600-1,900 |
| Block 18/06 (SSI 18) | 40 | 2006 | Petrobras 30%, Sonangol EP 20%, Falcon Oil 5%, Gemas 5% | 700 | November 2009 | Magnesium-01 | 750-1,750 | |
| Block 31* | 15** | 2013** | BP 26.67%, Sonangol E.P. 25%, Sonangol P&P 20%, Statoil 13.33%, Sonangol Sinopec 10%, SSI 31 Ltd 5% | December 6, 2012 | Plutão, Saturno, Vênus, and Marte | 1,500-2,500 | ||
| Block 32*** | 20 | 2014 | TotalEnergies | 650 | 2019 | Kaombo Ultra-Deep | 1,400-1,950 |
- Held via Sonangol Sinopec International 31 Limited
- Prior to 2013 at a reduced percentage
- Owned through Sonangol Sinopec International 32 Limited
- Prior to 2013 at a reduced percentage
Block 18
In December 2004, Sonangol regained a 50% interest in the deepwater Block 18 previously held by Royal Dutch Shell, as mandated by executive decree 148/2004. Although the stake was initially promised to the Indian firm ONGC-Videsh, Sonangol ultimately selected a Chinese partner. The share was awarded to SSI following its successful bid of US$725 million, which exceeded ONGC's offer. The transfer was officially ratified by Angolan oil minister Desidério Costa in February 2005. Backed by Sinopec as guarantor, SSI secured loans totaling US$1.6 billion from a consortium of international and Chinese banks to fund the development of production facilities.
Production commenced in the shallower eastern portion of Block 18 in October 2007, achieving output levels up to 240,000 barrels per day. This achievement encouraged Sinopec to increase its participation in Angola’s oil industry.
Blocks 15/06, 17/06, and 18/06
In May 2006, SSI expanded its portfolio by acquiring interests in several new licenses: a 20% share in Block 15/06 operated by AGIP, a subsidiary of Eni S.p.A.; a 27.5% stake in Block 17/06 under TotalEnergies’ management; and a 40% holding in Block 18/06 operated by Petrobras. These acquisitions involved competitive bids exceeding US$2 billion for two of the blocks, outpacing offers from major industry players such as ExxonMobil and British Petroleum. Subsequently, these licenses were rebranded as SSI 15, SSI 17, and SSI 18 respectively.
Blocks 3/05 and 3/05A
SSI obtained equity interests in the shallow water Blocks 3/05 and 3/05A located south of Soyo in 2007. These blocks were formerly under Total's control before being revoked amid the Angolagate controversy. After a brief transfer through CSIH, ownership was assumed by SSI.
Block 31
Following the acquisition of Marathon Oil’s stake in Block 31 by China Petrochemical Corporation in 2013, Sonangol Sinopec International 31 Ltd—a subsidiary of SSI—now holds a 15% interest in this block. Prior to this transaction, SSI's subsidiary SSI 31 Limited owned a 5% share.
Block 32
SSI possesses a 20% interest in Block 32 through Sonangol Sinopec International 32 Limited. Situated approximately 260 kilometers offshore from Luanda in deepwater territory, Block 32 is incorporated within the Kaombo Ultra-Deep Offshore Project operated by Total. Initiated in 2014, this project was projected to produce around 230,000 barrels per day. Other participants include Esso Exploration and Production Angola with a 15% stake and Galp Energia holding 5%.