ERHC Energy Inc (ERHE)

[RubyMartin]

Sao Tome and Principe: Sonangol becomes biggest shareholder of oil company ENCO [ 2008-09-23 ]


Sao Tome, Sao Tome and Principe, 23 Sept – The government of Sao Tome and Principe has sold 35 percent of the capital it held in oil and fuel company Empresa Nacional de Combustíveis e Óleo (ENCO), to Angola’s Sonangol, Sao Tome’s minister for Planning and Finance said Monday.

Ângela Viegas said the sale was due to the need to make the states shares in ENCO profitable as well as complying with the “programme that aims to remove the state from public companies.”

In the sales contract, the minister said, a safeguard was implemented, "that the Sao Tome state would continue to have the last word before any fuel price rises were put in place."

ENCO currently owes a large debt to Sonangol, due to fuel prices not having been updated, whilst prices have risen on the international market.

With this acquisition, Sociedade Nacional de Combustíveis de Angola (Sonangol) now has a 75 percent stake in ENCO.

The Sao Tome state has kept 16 percent of ENCO, and the remaining 9 percent of shares are distributed amongst a group of small shareholders. (macauhub)