Sonangol EP is a state-owned fully integrated oil and gas company headquartered in Angola. In 2020, it reported 13,000 employees*. The company did not report its revenue. Sonangol extracts and produces oil and gas products primarily in Angola. Apart from an unambitious renewable energy target, there are no other signs that Sonangol is preparing for the low-carbon transition.
Sonangol’s scope 3 emissions from the combustion of its oil and gas products by customers are its most important source of emissions. Sonangol’s locked-in scope 3 emissions from its upstream activities alone are expected to exceed its 1.5°C carbon budget by 4% between 2019 and 2050. This does not leave any scope for the company to develop new oil and gas projects. Instead of continuing exploring for oil and gas and developing new projects, the company needs to initiate a managed decline in production from its current oil and gas assets.
Sonangol does not produce any low-carbon energy at present, but it is committed to producing 50 megawatts (MW) of renewable electricity by 2027. Compared to 2019 figures, this is less than 0.01% of the company’s total sold energy. Sonangol has set up a joint company, Solenova Ltd, with Eni to explore renewable energy opportunities in Angola. However, since the announcement of this joint company in 2019, Sonangol has not deployed any renewable energy projects.
Sonangol should commit to increasing the ambition of its renewable energy production to account for a large share of its total energy, and should report clear timelines for the deployment of these projects.
Sonangol receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Recent changes to Sonangol’s fuel mix and sold product mix put its projected scope 1 and 2 and scope 1, 2 and 3 emissions intensities on marginally downward trends. However, this rate of reduction is still far below the requirement of the company’s 1.5°C pathway. With no targets in place to speed up its emissions reductions, Sonangol will not be able to keep pace with the requirements of the low-carbon transition.
Although Sonangol has not set any emissions reduction targets, the company is committed to producing more than 50 MW of energy from renewable sources by 2027. This comprises less than 0.01% of the total energy sold by the company in 2019.
Sonangol currently only produces and sells fossil fuel energy. Oil made up nearly 92% of its product mix in 2019 and gas the remaining 8%. The company recently entered an agreement with Eni for the incorporation of Solenova Ltd, a joint controlled company set up to assess and develop renewable energy opportunities in Angola.
Between 2014 and 2019, Sonangol’s scope 1 and 2 and scope 1, 2 and 3 emissions intensities decreased slightly due to a decline in oil extracted from the emissions-intensive region of Venezuela and due to increased gas in the company’s sold product mix. These decreases in emissions intensities, however, were not in line with the company’s 1.5°C pathway.
Apart from its renewable energy target, there are no other signs that Sonangol is preparing for the low-carbon transition. The company lacks climate-related governance and its main focus is oil and gas growth. The company needs to make significant internal effort to align with its 1.5°C pathway.