From Macau Hub

Singapore is establishing itself as a major financial platform for Angolan private and public investors, including state oil company Sonangol, and replacing Dubai.

According to Africa Monitor Intelligence newsletter, Singapore was already, at least since 2008, one of the preferred international financial markets for depositing Angolan state reserves and Sonangol funds, but it is now as the main destination of Angolan private capital abroad.

With increased relations between Angola and China, Sonangol’s offices in Singapore – Sonangol Asia Ltd – have also been gaining importance as a centre for marketing oil in the international market, said the newsletter.

Sonangol’s offices in Singapore sell far more oil in the Asian spot market than the London office, which until recently was the most important hub in terms of volume of sales.

According to AM Intelligence, Sonangol has another office in Houston and plans to open one in Shanghai.

At present, China purchases about half of Angola’s oil production, and state oil companies have entered oil production with huge investments, the latest of which was the purchase of US$1.52 billion stake from Marathon Oil in Block 31, by Sinopec, which is Sonangol’s partner in several projects.

Loans to Angola since the end of the civil war exceed US$14.5 billion and oil has often been used as collateral for these.

Read more at Macau Hub