Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Acknowledgements
- Part I Introduction
- Part II Thematic studies of national oil companies
- Part III National oil company case studies
- 5 Saudi Aramco: the jewel in the crown
- 6 Oil, monarchy, revolution, and theocracy: a study on the National Iranian Oil Company (NIOC)
- 7 Handcuffed: an assessment of Pemex’s performance and strategy
- 8 Kuwait Petroleum Corporation (KPC): an enterprise in gridlock
- 9 China National Petroleum Corporation (CNPC): a balancing act between enterprise and government
- 10 Petróleos de Venezuela, S.A. (PDVSA): from independence to subservience
- 11 Awakening giant: strategy and performance of the Abu Dhabi National Oil Company (ADNOC)
- 12 Brazil’s Petrobras: strategy and performance
- 13 Sonatrach: the political economy of an Algerian state institution
- 14 Norway’s evolving champion: Statoil and the politics of state enterprise
- 15 Gazprom: the struggle for power
- 16 NNPC and Nigeria’s oil patronage ecosystem
- 17 Fading star: explaining the evolution of India’s ONGC
- 18 Petronas: reconciling tensions between company and state
- 19 Angola’s Sonangol: dexterous right hand of the state
- Part IV Conclusions and implications
- Part V Appendices
- References
- Index
19 - Angola’s Sonangol: dexterous right hand of the state
Published online by Cambridge University Press: 05 January 2012
- Frontmatter
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Acknowledgements
- Part I Introduction
- Part II Thematic studies of national oil companies
- Part III National oil company case studies
- 5 Saudi Aramco: the jewel in the crown
- 6 Oil, monarchy, revolution, and theocracy: a study on the National Iranian Oil Company (NIOC)
- 7 Handcuffed: an assessment of Pemex’s performance and strategy
- 8 Kuwait Petroleum Corporation (KPC): an enterprise in gridlock
- 9 China National Petroleum Corporation (CNPC): a balancing act between enterprise and government
- 10 Petróleos de Venezuela, S.A. (PDVSA): from independence to subservience
- 11 Awakening giant: strategy and performance of the Abu Dhabi National Oil Company (ADNOC)
- 12 Brazil’s Petrobras: strategy and performance
- 13 Sonatrach: the political economy of an Algerian state institution
- 14 Norway’s evolving champion: Statoil and the politics of state enterprise
- 15 Gazprom: the struggle for power
- 16 NNPC and Nigeria’s oil patronage ecosystem
- 17 Fading star: explaining the evolution of India’s ONGC
- 18 Petronas: reconciling tensions between company and state
- 19 Angola’s Sonangol: dexterous right hand of the state
- Part IV Conclusions and implications
- Part V Appendices
- References
- Index
Summary
Introduction
The Sociedade Nacional de Combustíveis de Angola, commonly known as Sonangol, is the dominant institution in Angola’s petroleum sector. It has guided the sector through the country’s decades-long civil war as well as during a post-conflict boom marked by massive new investments and production streams that have cemented Angola as one of the world’s most important oil centers. Growing up in the midst of a bloody and destructive contest for power and operating in a state characterized by low human capital and major physical impediments to production efficiency, Sonangol has developed into a singularly effective agent of the government’s interests. To a large degree, Sonangol’s evolution into a successful manager of state petroleum-sector policies has taken place in spite of these obstacles to a traditional national development path, as the company has had to deftly negotiate dangerous operational terrain and generate investment in an environment seen by most as extraordinarily risky. In another sense, though, Sonangol has reached the lofty position it occupies precisely because of these challenges, which have inexorably shaped the company’s outlook, competencies, and room to operate within the Angolan political system.
Since throughout most of its history the company devoted relatively little attention to field operation, its performance cannot be fully measured according to the most traditional metrics used to assess the performance of an oil company. However, I will argue that Sonangol should be viewed as a high-performing national oil company (NOC) because it is particularly skilled at providing what its political masters seek. The company’s primary responsibilities are fourfold. First, and most obviously, the state has given Sonangol primary responsibility for building a dynamic, dependable domestic oil sector. The company has achieved this primarily by establishing and managing contracts with international companies IOCs charged with the administration of technical operations and the mobilization of investments. Throughout its history, Sonangol has provided the conditions in which operational companies could make technical decisions with confidence that political interference would be minimal, which has encouraged foreign operators to make massive long-lived capital investments. This accomplishment is particularly impressive in light of the country’s broader political uncertainty. The company’s leadership in this realm was particularly crucial between its founding in 1976 and the end of the civil war in 2002. During this period, when most sophisticated economic activity in Angola was brought to a standstill by the conflict, hostility to non-oil investors, and destructive socialist policies, Sonangol managed to protect the interests of its international partners and maintain a thriving enclave oil economy. The company’s stewardship role has evolved in the late-war and postwar periods, as it has granted concessions for and managed the operations of ever more complex deep water production.
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- Oil and GovernanceState-Owned Enterprises and the World Energy Supply, pp. 836 - 884Publisher: Cambridge University PressPrint publication year: 2011
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