(Ecofin Agency) - Total towards its first step in opening fuel stations in the southern African nation, has announced that it has entered into a Memorandum of Understanding (MoU) with Sonangol.

The government of Angola had in October revealed that it is restructuring its oil sector and state-owned Sonangol, but did not disclose further details.

According to Total spokesman, the MOU signed by Patrick Pouyanné, the Chief Executive of the company makes way for a network of Total-branded stations in Angola.

"In a first phase, products would be obtained through Sonangol”, the spokesman said adding that further datails will be provided once the shareholder agreement with Sonangol has been signed.

Angola’s state-owned Sonangol has a refinery in Luanda which produces 56,000 bo/d. The company noted that the deal could be an investment of hundreds of millions of dollars, with both instantaneous and long term benefits.

"This action, via a consolidated partnership between the two companies, embodies the government's strategy to liberalize trade in the sector”, Sonangol told Reuters.

As oil production represents 40% of Angola’s GDP, the country's capitals have suffered due to the sharp decline in the global in oil prices ever since mid-2014.

Angola is a key producer of crude, but does not produce an adequate amount that will feed its fuel demand. Sonangol, is however, currently under duress to demonstrate how it is improving the country’s downstream potential.