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Angola awards fuel tender to Total, Trafigura

May 22/2019

MOSCOW (MRC) -- oil company Sonangol said it had awarded its refined products buy tender for the next 12 months to Total and Trafigura, said Hydrocarbonprocessing.

Total will supply Angola with gasoline while Trafigura will supply diesel and marine diesel.The results come on the back of some of the worst fuel shortages Angola has seen in years, which led to the sacking of Sonangol chair Carlos Saturnino earlier this month.

Sonangol, Angolas largest and most influential company, blamed the shortage on difficulties accessing hard currency as well as unpaid debts owed to the energy company by industrial clients.

Heavily reliant on oil sales for government income, Angola was hit hard by the 2014 oil price crash, which pushed its economy into recession and created foreign currency shortages that crippled business.

In the statement on Tuesday, Sonangol said it had issued the tender in February with nine companies bidding for the supply contracts.

The tender result marks a return to Angola for Trafigura which for many years enjoyed an effective monopoly on lucrative fuel supply deals with OPEC member Angola.

Despite being Africas second-largest crude producer, Angola only has the refining capacity to supply about 20 percent of its fuel needs.

Links between Trafigura and Angola stretch beyond fuel imports, with Sonangol and Angolan company Cochan Holdings having the significant stakes in the traders global midstream and downstream business Puma Energy.

The choice to drop Trafigura last year was seen as a major statement at the time, as President Joao Lourenco vowed to reform Angolas oil sector.

As MRC informed earlier, Italian company Eni said it had made a major oil discovery in Angola that would boost its credentials as one of the most successful foreign oil producers in Africa in recent years. The find is Angola's largest offshore discovery in years and may help Africa's second-biggest crude producer avoid a steep decline in output due to the ageing of its other fields.
Author:Anna Larionova
Tags:petroleum products, petrochemistry.
Category:General News
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