The Oil Factor in Sino– Angolan Relations at the Start of the 21st Century

The document analyzes the strategic interdependence between China and Angola, where Chinese credit lines for infrastructure are guaranteed by oil supplies, and Chinese national oil companies seek equity in Angolan oil blocs. It details the 'Angola model' of resource-collateralized loans and the specific successes and failures of Sinopec's upstream and downstream ventures.

• Bilateral trade between China and Angola grew from $1 billion in 2002 to $25.3 billion in 2008, with China replacing the US as Angola's primary trading partner.
• The 'Angola model' of financial assistance involves concessional loans for infrastructure that are secured by access to natural resources and tied to the use of Chinese contractors and goods.
• Chinese oil imports dominate the trade relationship, representing 72% ($18.6 billion) of total bilateral exchanges in 2008, and Angola became China's largest oil supplier on two occasions in 2006 and 2008.
• Public funding for Angola from China reached $12 billion through credit lines from Exim Bank and the China Development Bank (CDB), with the Exim Bank loans specifically tied to oil supply contracts.
• The China International Fund (CIF), a private Hong Kong-based fund, provided a separate credit line for infrastructure but faced significant failures due to unrealistic planning and disbursement problems.
• Sinopec successfully entered the upstream oil sector by acquiring a 50% stake in oil bloc 18 through a joint venture with Sonangol (SSI), leveraging high-level political connections and the goodwill generated by Chinese credit lines.
• Sinopec's attempt to enter the downstream sector failed when the $3.5 billion Sonaref refinery project collapsed in March 2007 due to disagreements over whether the refinery would supply the Chinese or domestic/Western markets.
• China's success in Angola is attributed to its ability to establish direct connections with the highly centralised Angolan presidency, which operates with few executive constraints or transparency requirements.

APA

Alves, A. C. (2010). The Oil Factor in Sino– Angolan Relations at the Start of the 21st Century. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2010/02/Occasional-Paper-55.pdf

Chicago

Alves, Ana Cristina. The Oil Factor in Sino– Angolan Relations at the Start of the 21st Century. South African Institute of International Affairs, 2010. https://saiia.org.za/wp-content/uploads/2010/02/Occasional-Paper-55.pdf.

Wikipedia

{{cite report |last1=Alves |first1=Ana Cristina |title=The Oil Factor in Sino– Angolan Relations at the Start of the 21st Century |publisher=South African Institute of International Affairs |date=February 2010 |url=https://saiia.org.za/wp-content/uploads/2010/02/Occasional-Paper-55.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alves2010oil, author = {Alves, Ana Cristina}, title = {{The Oil Factor in Sino– Angolan Relations at the Start of the 21st Century}}, institution = {South African Institute of International Affairs}, year = {2010}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2010/02/Occasional-Paper-55.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }