Password recovery Click to recover your password
 
Crude Derivatives Distribution and Marketing
Strategy

Goals in a sensitive market
Having as core business products like fuel and butane gas (LPG), that are critical to daily living in Angola we could literally say that Distribuidora carries the image of Group Sonangol all over the country.

To positively respond to a sensitive market and save the Group's face, Distribuidora has defined the following short and long-term goals:

  1. update our infrastructure
  2. expand our network of permanent-construction gas stations
  3. decrease the local shortage of butane tanks
  4. stop cross-border smuggling of Angola's illuminating-oil
  5. reduce the current bottlenecks in the distribution by 2009, and possibly open the oil distribution market to private companies.

Strategy plan
To fulfill our goals, Distribuidora strategy plan includes the following:

  1. In 2004 Distribuidora invested US$55 million which was followed by a later investment of US$76 million in 2005 to build new storage facilities and to modernize its fleet of tankers.
  2. A 5-year plan started in 2004 that will result in around 400 gas stations all over the country by 2009.
  3. Butane gas is the main source of cooking energy for the population and the shortage is particularly severe in the poorer neighborhoods of Luanda. To ease the immediate butane shortage, Distribuidora over the next fours will buy half a million canisters. And by the end of the decade we expect that local companies will have developed the expertise to maintain the canisters properly, thereby prolonging their useful life.
  4. Because illuminating oil is cheaper in Angola compared to neighboring countries, it is continuously smuggled across the boarder. By implementing measures that will put a stop to Angola's smuggling oil abroad, Distribuidora will also increase it's profit margin.
  5. Much positive change is expected in 2009 when Lobito's refinery comes on stream, expected to provide Distribuidora with a more dependable supply of butane gas. With current development projects by the end of the decade, Angola will have some of its railways working again and the roads will have improved. And Distribuidora, we will have much better storage facilities and a bigger gas station network.