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AfrOil INVESTMENT AfrOil

GUPCO to invest $562mn

in oilfield facilities in 2021

EGYPT EGYPT’S Gulf of Suez Petroleum Co. (GUPCO) plans to raise oil production to above 700,000
has allocated $562mn to be invested in oilfield bpd in 2021 through continued exploration and
facilities in its budget for fiscal year 2020/21, development operations as well as well mainte-
targeting raising its production rate to 70,000 nance to satisfy growing demand for crude from
barrels per day (bpd), the Ministry of Petroleum domestic refineries. ™
said in a press release.
GUPCO will rely in part on its UAE-based
partner Dragon Oil to increase its production in
the near future. It hopes this initiative will com-
pensate for natural depletion.
Mohamed El Meligy, the chairman of
GUPCO, reported that new and promising
exploration opportunities would be evaluated
in light of seismic survey results conducted in
co-operation with Schlumberger, an oil services
giant. He also mentioned his company’s envi-
ronmental reform projects, including the estab-
lishment of an industrial wastewater treatment
plant in Ras Shukeir.
Egypt, already a major natural gas exporter, GUPCO’s existing terminal in Shukeir (Photo: Shibata Fender Team)

Sonangol exec comments on

likely value of upcoming IPO

ANGOLA BALTAZAR Miguel, the executive adminis- year. These revenues stemmed from the trade
trator of Angola’s national oil company (NOC) of nine assets and the sale of three properties in
Sonangol, said last week that plans for the partial Portugal, he explained.
privatisation of his company might generate at In the meantime, he said, the company has
least $6.5bn in revenues. committed to unloading stakes in another 34
Speaking at an event marking Sonangol’s assets from its portfolio. These sales are not yet
45th year in business, Miguel noted that the completed, he reported, without revealing fur-
NOC had calculated the value of a 30% stake at ther details.
$6.5-8.1bn. This is based on the company’s own Martins also noted that Sonangol still had
internal estimates, which put Sonangol’s total equity stakes in several other companies that
value at $21.8-27.0bn, he said. were not involved in oil and gas. It is a share-
Angola’s government has said it wants to sell holder in Unitel, a telecommunications com-
part of its holdings in Sonangol via an initial pany formed by former president Eduardo
public offering (IPO) of stock before the end of dos Santos’ daughter Isabel dos Santos, and in
2022, he added. a number of banks, he said. He named those
Officials in Luanda have already begun banks as BAI, Banco Economico, BCI, BFA,
preparations for this sale in consultation with Caixa Angola and Millenium BCP.
the international accounting firm Ernst & He went on to say that while the NOC
Young and recently staged their first meeting on remained committed to divesting its non-core
the upcoming sale, he stated. assets, it might not always follow a straight path
Miguel was speaking at the same event where toward that goal.
Gaspar Martins, Sonangol’s board chairman, This is because non-linear routes may allow
reported that the NOC had earned some $48mn the company to “circumvent the difficulties,” he
through the divestment of non-core assets last commented. ™

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