Angola’s state oil firm Sonangol said on Thursday the debt it owed to foreign oil companies had risen sharply due to lower oil prices and it expected this year to be “very difficult” as crude prices remained low.
Sonangol’s net debt soared 41 percent year on year in 2015 to 1.24-trillion kwanza ($7.8bn) and revenues plummeted 54 percent due to suppressed crude prices, the company said in its annual results.
Much of Sonangol’s debt is outstanding investment and operational costs owed to foreign oil companies, including Total, Chevron, Exxon Mobil, BP and Eni.
“The results and the company’s financial performance will remain under heavy pressure,” Sonangol said, adding that some planned investment projects would be placed under review.
Angola’s oil production averaged 1.78-million barrels per day last year, up 6 percent, compared with 2014 and a further slight increase was expected this year, Sonangol said.
Angola, a member of the Organisation of the petroleum exporting countries and Africa’s second-largest oil exporter after Nigeria, relies on crude export revenues for more than 90 percent of foreign exchange revenues.
A year of subdued oil prices has hammered Africa’s third-largest economy and Angola’s government is in discussions with the World Bank and International Monetary Fund about possible financial assistance.
