- Title: Angola is not the next Venezuela, state oil firm says as it cuts debt
- Date: 17th October 2017
- Summary: LONDON, ENGLAND, UK (OCTOBER 18, 2017) (REUTERS) (SOUNDBITE) (English) HEAD OF SONANGOL, ANGOLA'S OIL COMPANY, ISABEL DOS SANTOS SAYING: "There is no doubt there are challenges and you rightly say we are still very dependent on oil so diversification is something we must ensure happens and a lot has been done already but we still have work still to do. And one of the big challenges is of course access to foreign currency, because we are still very dependent on oil for our foreign currency, as it is our main export, and here as an investor if you were to invest in an export type activity that's not going to be a risk, but if you are running local services and you are reliant on foreign currency, that could be potentially a risk." REPORTER QUESTION: "What would you say this new president's oil policy is, is it similar to your fathers, or different, obviously it's important having said what you said about the dependence on oil?" "Angola's oil policy is drafted by the government and by the executive, it is not a single person's exercise to plan an economy like the Angolan economy is a complex, it’s a complex exercise, so you have the involvement of the ministry such as the ministry of finance, the ministry of economy, ministry of planning and we look at our budget, we look at the needs of the country and what is the vision and so the oil vision is very much aligned with the government's vision." (SOUNDBITE) (English) HEAD OF SONANGOL, ANGOLA'S OIL COMPANY, ISABEL DOS SANTOS SAYING: "I have to say that China today is the world's biggest lender so even economies like European economies are getting financed by the Chinese economy so there is absolutely no taboo about being financed by Chinese banks because that is pretty much the case everywhere. Now Angola has entered into a number of financial structures to be able to support this development programme of infrastructure and also to be able to support the building of a lot of social infrastructure. Those financing programmes were done with Chinese banks and obviously underlaid with those debt structuring was being able to have an oil relationship with China because for China energy is an issue and they would like to have a guaranteed source of energy for their own needs." REPORTER QUESTION: "Looking at what is happening, I think of this I ask this question when I think of Venezuela, you know, and the problems they are having now in its relationships with various countries, I mean - is this something that, businesswise, you know from your role at Sonangol but also as an entrepreneur and as a business woman, worries you?" "Personally I have been to Caracas, I have Venezuelan friends, I had a (inaudible) to Caracas last year. I really find that the Venezuelan environment and the Angolan environment are completely different, there is really, pretty much nothing in common, maybe just the weather. So in that sense comparing Venezuela's experience with China and Angola's experience with China, for me are non-comparable." NEWSMAKER IN PROGRESS REPORTER QUESTION: "Do you think that what the new president has said did you interpret this as a threat to the prominent role of your particular family?" (SOUNDBITE) (English) HEAD OF SONANGOL, ANGOLA'S OIL COMPANY, ISABEL DOS SANTOS SAYING: "Again I would like to say that my family doesn't necessarily have a role, I mean I most certainly don't recognise myself as being part of a family member role, but to go back on responsibility, I do think that it is the responsibility of those who are in a leading position, of those who have the ability to change something, to challenge these issues such as corruption and to educate, so yes I think he has taken a very good approach which is to challenge it, to say what can we do about it what are the things we should be addressing."
- Embargoed:
- Keywords: Angola, China, Sonangol, Venezuela, commodoties, oil
- Location: LONDON, ENGLAND, UNITED KINGDOM
- City: London
- Country: United Kingdom
- Reuters ID: LVA00173KDIRR
- Aspect Ratio: 16:9
- Story Text:Angola is not the next Venezuela, the head of state oil firm Sonangol said on Wednesday (October 18) while pledging to further cut debt, even if both oil-rich nations have relied heavily on loans from China.
Venezuela, the Latin American oil behemoth, has found itself struggling to repay debts to China and Russia that total at least $50 billion. But Sonangol chair Isabel dos Santos said her company was not on a similar track.
Dos Santos told a Reuters newsmaker event that Sonangol has already slashed $3 billion in debt, and that she has the backing of the new president for an ambitious reform plans that aims to further cut debts.
Dos Santos took the helm of the state oil company in June 2016, when her father Jose Eduardo dos Santos was still in office. He stepped down as president this year after 38 years in power. But she said the new administration was on board with the "huge task" of her five-year turnaround plan for Sonangol.
Sonangol was hit hard by the slump in oil prices that began in 2014. She said the company was "debt ridden" when she took the helm, but that there was no concern over outstanding loans from China, a key buyer of its oil and source of financing for Sonangol itself as well as Angola.
She said there is no taboo about being financed by Chinese banks, adding that they had cut total company debts to $10 billion this year from $13 billion.
She declined to give a figure for the total amount Sonangol owed to Chinese lenders, citing only $3 billion from mainland Chinese banks.
But years of borrowing, particularly from China, left the nation with a dwindling amount of crude to sell for fresh revenue during the depths of the oil price crash, and others estimate its oil-backed debts to Chinese entities at least $25 billion. - Copyright Holder: REUTERS
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