Credit compensation agreement between the State and Sonangol eases debt between the parties.

The confirmed debt of the State to Sonangol is 11.4 billion kwanzas, and Sonangol in turn owes 7.6 billion to the State.

The new compensation agreement between the State and the state oil company (Sonangol) postpones the payment of the debt of 3.8 billion Kz to the company, without interest and without a repayment plan, since the company also owed taxes to the State, reported Jornal Expansão.

In a warning, the independent auditor of the 2023 accounts of the state oil company, KPMG, considers that the new agreement, the third, postpones the payment of the debt to the state oil company and, this time, results in a net credit valued at 3.8 billion Kz (around 4.5 billion USD). This is a credit offset agreement, since Sonangol also owed taxes to the State, and it does not provide for the payment of any interest or establish a repayment plan.

KPMG warns that the recovery of credits already due in favor of the oil company will be carried out, without interest, by offsetting with subsequent credits, including those resulting from commercial operations, allocation of crude oil shipments and tax debts, and that there is currently no repayment plan for these credits.

The history of "kilapis" between the State and Sonangol has been regularly penalized by state subsidies for fuels, such as gasoline and diesel. And, consequently, the oil company's treasury is weakened and ends up not paying taxes to the State either.

Approved in May 2024, the "Agreement for the compensation of non-tax credits of the State in favor of Sonangol EP for tax and non-tax debts of Sonangol in favor of the State" (Agreement-2023), whose objective is to "clear" balances that have been going on for many years and that do not move forward with any plan, since the formula of payment with compensation of balances has been repeated until the Executive ends the fuel subsidy once and for all.

However, it was confirmed that the State owed 11.5 billion Kz to Sonangol, which is the remaining balance of the previous compensation agreement, as well as debt related to the fuel subsidy and overdue credits associated with the Reimbursement Plan of the National Urban Planning and Housing Program ("PNUH).