International Court Declares Sonangol as Sole owner of Investment in Galp

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The International Arbitration Court, under the auspices of the Netherlands Arbitration Institute, ruled, on July 23rd, a final judgment in favor of Sonangol following the litigation, initiated in 2019 by Exem Energy BV, a vehicle company with no other assets headquartered outside the country, owned by Isabel dos Santos, who intended to legitimize an alleged transfer of shares in Esperaza Holdings BV from Sonangol to that company.

The litigation concerned the 40% stake held by Exem allegedly transferred by Sonangol EP in Esperaza Holdings BV, the vehicle through which the national oil company made, in 2006, a great and successful investment in the Portuguese oil and gas company Galp SA.

As a result of the Arbitration Court's decision, Sonangol will be reinstated as sole shareholder (100%) of Esperaza Holdings B.V.

After analyzing the documentary evidence and conducting a seven-day probationary hearing, the Arbitral Court concluded that the transaction by which Exem Energy BV intended to acquire its stake in Esperaza Holdings BV was contaminated by illegality, allowing its owners to influence the direct control of the national oil company, to reap extraordinary financial advantages in its favor to the detriment of the former and, consequently, of the Angolan State.

Based on the factual findings, the Court declared the transaction null and void and that Sonangol is considered the legitimate owner of 100% of Esperaza Holdings B.V..

The 40% of the disputed shares of Esperaza Holdings B.V. have a current market value of approximately USD 700 Million US Dollars.

Exem Energy B.V. was also ordered to bear the total costs incurred by Sonangol during the arbitration process.