ISSUE 2 SUMMER 2004 SONANGOL

universoANGOLA | OIL | BUSINESS | CULTURE

■ DEEPWATER FRONTIER First new licensing round in a decade ■ SAFE CONDUCT Multi-million dollar initiative on health, safety & the environment ■ ANOTHER COUNTRY Opening up the interior of Angola The learning process will accel- erate over the next three years by giving every employee appropri- ate training by 2007.

demonstrate their commitment to this value one of the company’s production units. through their behaviour and attitude. The last “We have a new national contingency element, auditing, is designed to ensure con- plan,” he explains. “The idea is to have disper- tinuous improvement.” sal points, with trained staff who can respond While employees have given the new sys- immediately to any spillage. We know that all tem a positive reception, the biggest challenge the operating companies have their own sys- has been to alter the culture within the organi- tems, but we too need to plan for a big sation. catastrophe. This plan has already been drawn “Be it quality, health, safety or the envi- up and all that remains are technical and legal ronment, each element requires a big change details. It will be ready in the second quarter of in terms of attitude and the way we think,” da this year.” Silva says. “I’m surprised, but people are very, Another priority is to raise quality stan- very interested and the concept has been very dards to international levels with the aim of well received from top to bottom. achieving certification such as ISO-9000. “The big difficulty though, is that we are “We will help units develop those stan- talking about something that will have to dards,” he says. “Our plans are to make each change attitudes and change behaviour. And one clean and safe from the point of view of changing the behaviour of people is not easy.” health, the environment and quality. Persuading its own drivers to allow their Certification won’t come soon and we are just skills to be monitored by an in-cab device as at the very beginning of this process, although part of the new health and safety programme some of our new buildings, such as our head C H R I

S was one of Sonangol’s first hurdles. The QHSE office and the company clinic, will be certified T O P

H department introduced “Drive Right”, a tool from day one.” E

I L L

E designed to monitor a driver’s behaviour, There are also steps being taken towards M A S

S including speed, acceleration and braking. cutting gas flaring – ideally to zero – which will E N E “Statistics show that the cause of most coincide with the start-up of Angola LNG, a road accidents is human error, so although we massive gas export project scheduled to never losing sight of its special responsibility don’t have a long record of accidents, if we launch in 2009. “Be it quality, health, safety or the to Angola as a whole. want to change something it’s the people we Specific health and safety measures that “In everything we do, we must think about need to work on and train,” da Silva says. were implemented by Sonangol in Pesquisa & environment, each element requires a our country and its priorities, because we There was some reticence among sea- Produção in 2003, will see a more immediate believe that we are a major driving force soned company drivers to suddenly having impact, including more frequent inspections big change in terms of attitude and the behind national development,” explains da their driving skills analysed, but an extensive of support vessels chartered by the company, way we think.” Silva. “So we decided to go round the world training programme delivered the message and updated emergency response procedures and see what people are doing in Europe, in that the exercise was not designed to have for Block 34. Valente da Silva, Sonangol’s head of QHSE the Middle East, in South America. We went implications for their jobs, but to reduce acci- In addition, a new QHSE appendix for all through every element of each QHSE manage- dents. It paid off, as shown by a reduction contract and tender docu- ment system, to examine how they could evident at the Pesquisa & Produção ments is being developed, apply to the Sonangol internal and external (Exploration and Production) subsidiary, with as are new procedure This was a painstaking process, bringing environment.” drivers even reporting near-misses and using guidelines on personal pro- on board managers from all departments to After two years of planning and re-struc- the systems in their own cars. tective equipment, alcohol ensure that the QHSE message would filter turing, 2004 sees a special focus on QHSE The QHSE management system at and drug abuse, as well as a down from the top. within the company with the implementation Sonangol also extends to our clients and some new document on the pre- “We instituted extensive training pro- of the QHSE management system. The learn- relevant organisations and government vention of malaria. grammes, with the objective of building a ing process will accelerate over the next three departments, such as the Port Authority, and With the department common foundation across the organisation, years by giving every employee appropriate the transport and petroleum ministries. reporting no major inci- so that all staff would have the same apprecia- training by 2007. “We want to convey what we’ve learnt to dents and only a handful of tion of precisely what quality, health, safety The Sonangol QHSE management system them, and look at ways of coming together so minor incidents in 2003, and environment means – and to have a com- is comprised of 14 elements, from leadership we’re not all acting separately in the event of most of which were illness- mon understanding in terms of function and responsibility to auditing. an incident,” says da Silva. es, it looks like Sonangol’s C

procedure,” says da Silva. As da Silva explains: “Essentially, the first One example of the improved cooperation “Drive Right” participants H R I S T

With a benchmark of the ways in which element – leadership and responsibility – says is the joint team being established with the are not the only ones going O P H E

QHSE management systems have been imple- that safety, health and environment is one of Ministry of Petroleum to deal with the conse- in the right direction when I L L E mented in other companies, Sonangol was the most important values of the company quences of a “worst-case scenario”, which, it comes to health and M A S S

❖ E able to learn from its international peers, while and in order to make it happen, leaders must according to da Silva, would be a blowout at safety. N E

30 SONANGOL UNIVERSO SUMMER 2004 31 A REGIONAL FOCUS L O

G Benguela’s tree-lined streets are among the N A

most pleasing in Angola – and it is small E

D wonder that its citizens seem to smile a lot. I S

N stroll down Benguela’s boulevards is Goods from all parts of the world arrive I Picture like a breath of fresh air – with the city’s through the port city of Lobito, about 30 kms Awide, open spaces, picturesque squares north of the provincial capital. Even during the and cooling ocean breeze complementing its war years, it continued to supply the province acacia-lined streets. with at least the basics, thereby stimulating It is from these trees with their ruby-red business. “Having the port meant that even blossom that the capital of the province, takes during the war years we received significant its sobriquet, A Cidade das Acacias Rubras investment in Benguela,” Ricardo says. Per fect (City of the Red Acacias). Although today it is only operating at 45 But visitors at any time of year cannot fail percent of its capacity, the port is growing all to be won over by Benguela’s easy coastal the time. Coupled with the ongoing recon- charm and its magnificent views over the struction of the famous Benguela railway, Atlantic Ocean. there is plenty of potential to attract still more “I simply adore Benguela,” says one for- products for distribution across Angola and mer resident who regretted having to leave beyond its borders. when her children started university in “[The port] is recovering its pride as the Luanda. “It’s so calm, so tranquil, so lovely,” major emporium of commodities from the she says. “It has everything.” western coast of the African continent thanks Stylish shops and continental cafes can be to its connections with Benguela Railways found on many of its street corners, while a which links the Atlantic to the Indian Ocean,” choice of restaurants serve fresh fish and states a Port Authority brochure. seafood prepared in local tradition or using The province has also proved to be a mag- recipes from as far as Portugal or Brazil. net for other industries. A trip deeper into the province itself (also “The most important activity launched in called Benguela) will reveal why residents and Benguela province in the last 10 years is visitors alike rave about Benguela’s beauty and Sonamet. It has had a major impact on the why its people seem to be forever smiling. lives of the local people. Substantial resources Lying around 500 kilometres directly have been allocated to the workers and to their south of Luanda, the fertile province of 1.9 families, and this money is a considerable con- million people was one of those least affected tribution to the local economy,” says one local by the war – and it shows. businessman. The elegant colonial buildings of Benguela Sonamet, a joint venture between and Lobito, many freshly painted in pastel Sonangol and Stolt Offshore, manufactures shades of rose-pink, mint-green and pale state-of-the-art equipment and other subma- lemon, remain in good condition. rine and survey machinery for the oil industry. The roads, while not perfect, are relatively It is the region’s biggest employer, with more free of potholes. Telecommunications too are than 800 staff. reasonable, with two mobile phone networks Sonamet’s accomplishments have also operating in the major towns and potentially spurred other oil-related investments in the reaching around two thirds of the population. region. Angoflex, a firm which makes steel “Life in Benguela is pretty good,” says tube umbilicals for the African deepwater oil Amaro Ricardo, economic advisor to its gover- market, is a collaboration between Sonangol nor. and France’s Technip, and is scheduled to take “We have lots of facilities and amenities, on another 80 local people by the end of the the hospitals are improving, the schools are year. getting better and we have intense economic Away from the coast, the eerily-beautiful activity thanks to the airports and the Port of remnants of a now-defunct sugar factory and A Portuguese colonial Lobito.” vegetable oil plant in the nearby town of church in Lobito.

SUMMER 2004 33 such as locksmiths, restaurants, hairdressers Luis de Sousa, director of a local three-vessel “Life in Benguela is pretty good. We have lots of and carpenters, popping up to serve a new- fishing firm. found demand. As the gentle waves at the beach lap up facilities and amenities, the hospitals are improv- “We’ve seen the rebirth of the small town against the colourful, wooden fishing boats, of Catumbela. The economic structure is really visitors with any business sense will scent the ing, the schools are getting better and we have starting to move. Yes, it’s just one factory but potential for tourism. you can really see its impact. After all, we start- Already, many Angolans are choosing to intense economic activity thanks to the airports ed from zero,” Gillet says. spend long weekends in Benguela, relishing Ricardo sings the praises of the burgeon- the chance to escape the hustle and bustle of and the Port of Lobito.” ing industrial scene and its knock-on benefits the capital. for the entire province. “I can see tourism growing a lot when the Amaro Ricardo, economic advisor to the provincial governor. “We have many big municipalities where roads get better,” says Maria Jose Pinto, propri- there is now considerable economic activity. etor of the 12-room, family-run A Sombra People who were unemployed now have jobs guesthouse. province,” says its dreadlocked choreographer, thanks to big industries like Sonangol, “For example when there’s a bank holiday Cristovao Kajibanga. “The dances may look Sonamet and the beer factory,” he says. on a Monday or Friday, a lot of people come similar to what you’ve seen from other parts of Heavy industry aside, the main earner for from Luanda for the weekend. We have beauti- Angola, but actually what we have here is the province is still its rich agricultural and ful beaches, it’s relatively safe, and there’s unique,” he adds. fishing sectors. plenty to see and do,” she says. With the dancers clad in vibrant tradition- The 30-minute drive back from Lobito to After a hard day’s sunbathing and sipping al dress and with olosango, maraca-style Benguela city is an easy way to sample what refreshing Cuca beer at the beach, the cool, percussion instruments, tied to their ankles, the fertile provincial plains have to offer. leafy courtyard of Benguela’s National the energetic display tells a tale of sowing Towering coconut palms sway in the sea Archaeology Museum provides welcome shade seeds, tending land and presenting the harvest breeze, while roadside vendors sell just-picked and a chance to learn more about the to the family table. bananas to passing motorists. Stretching into province’s past. Accompanied by singing and the rhythmic the distance, and overlooking the lush fields, The 200-year-old, sea-front building was beat of a batuque (drum), the dances also neat, stone homes with thatched roofs house once a “warehouse” for slaves who were kept explore more complex issues like the econom- the local farmers and their families. in sweltering conditions before being shipped ic empowerment of women. Practice sessions “There are four big agricultural zones – off to the Americas by the Portuguese. The rail usually take place at the crack of dawn to Dombe Grande, Cavaco, Catumbela and Anha. tracks along which they were transported to avoid clashing with valuable school-time. They produce bananas, sugar cane, corn and waiting vessels remain as a sinister reminder Provincial government figures show that many other things. Benguela also has lots of of Africa’s slave trade. Benguela has around 500 schools, with an capacity for farming cattle or livestock,” “To get some natural sunlight, the slaves average of 61 students per classroom. Local Ricardo says. would ring that bell to be taken outside to the businesses have applauded the relatively high Most of its produce is consumed locally, courtyard. Eventually they would be transport- level of secondary education in the region and but the province was once a hub for the export ed via the rail track, over a bridge and to sea,” universities are expanding their courses. trade too, with the port exporting bananas, says Paulo Valongo, the museum’s director, “In 2003 the first private university was set sugar and coffee. standing under the original bell tower. up in Lobito offering courses in management, At the Praia dos Pescadores Catumbela provide a fitting memorial to the Offshore too, the teeming waters of “This part of the building will be rehabili- accountancy, business studies and law. (Fisherman’s Beach), boys show off once-lucrative local industries. Benguela are vital to the economy, accounting tated and kept in memory of the slaves. It’s Benguela is the second-largest industrial the day’s catch of espada (swordfish) While they stand idle, other businesses are for 45 percent of Angola’s fishing industry, or important for the people of Angola not to for- centre in Angola after Luanda so we really do and cachucho (red snapper). beginning to spring up. around 31,000 tonnes annually. get their past,” he says. need tertiary education here,” says Maria Alice “When I arrived, Catumbela was a ghost- At its Praia dos Pescadores (Fisherman’s Moving to the present day, an array of cul- Cabral, advisor on social affairs to the town,” says Jacques Gillet, the director of the Beach), traditional fishermen proudly show off tural activities from cinemas, to concerts and governor. Soba beer factory which opened its doors just the day’s catch of espada (swordfish) and dance shows keep locals and visitors enter- Twenty-year-old Marcio is eagerly awaiting over two years ago. cachucho (red snapper). tained. the day when an electrical engineering course Employing 300 people – 98 percent of In recent years fish stocks have dwindled Catching up with one dance troup during starts up so he can study in his home town. whom are locals – the plant makes Angola’s because of illegal trawling by foreign fleets, but a day-break rehearsal, the importance of the “I’ve been thinking about going to London popular Cuca beer. The facility has been hailed even those worst hit hope the situation will region’s distinct culture becomes clearer than but really I would much rather stay in as a resounding success, outstripping its pro- improve in 2004. ever. Benguela with my family, my friends, the duction and profit targets well ahead of “Last year we almost went bankrupt, but The Bismas group, which started in 1984, beaches and everything else I love about this schedule. we can already see the impact of greater gov- combines images from rural villages with city area,” he says. Apart from the direct benefit to its work- ernment monitoring. Stocks are being realities to form a rich fusion of traditional and With all these elements in place, the day is ers, the plant has generated a thriving local replenished, the sardines are back, and I think contemporary African song and dance. fast approaching when more like him will secondary market, with all sorts of businesses, we’ll make more money this year,” says Jose “We do research in all parts of the chose to stay in a province that has everything.

34 SONANGOL UNIVERSO SUMMER 2004 35 INFRASTRUCTURE

Restoring its railway infrastructure is Trainspotting central to reviving Angola’s entire transport system.

s Angola emerges from decades of civil war that all but destroyed its transport Anetwork, peace is bringing in a new era of reconstruction. The fascinating history of Angola’s main railway, covering more than 1,300 kilometres and crossing its vast plains, goes back more than a hundred years. As it gains a new lease of life, the history books will surely have to be rewritten, but this time with a modern slant. The Benguela Railways – as they were for- merly known – were originally built when British colonialist Cecil Rhodes was prospect- ing for copper in the region. Robert Williams, one of his engineers and the railway’s founding father, recognised that to make the business truly viable, a more efficient transport network would be needed, and laid the first track in Angola’s Benguela province in March 1903. “The initial idea behind the construction of Benguela’s railroad was the fast, economic and safe transportation of minerals,” recounts The Benguela Railways and the Development of Southern Africa, a photo-packed book that chronicles the railway’s history. However, the railway soon became the key factor in the development of Angola’s central areas and as such became the backbone for much inter-linking transport infrastructure. The construction of the railway – operating today as the Caminho de Ferro de Benguela (CFB) – was long and arduous. The entire net- work, which wove its way across Angola, took around 30 years to build and was finally com- pleted in 1929. Even in the early days, its value to Angola and to southern Africa was enormous. “The running of the train is an essential factor in the country’s development as well as C H R I

S in the social and cultural exchange and com- T O P

H munication between provinces,” underline the E

I L L

E historical chroniclers of the railway. M Conductors at Catumbela A S

S Angola’s 27-year conflict devastated much E Station, 8 kilometres N E of the railway, put paid to almost all transport south of Lobito.

36 SONANGOL UNIVERSO SUMMER 2004 37 ing a living from agriculture have been able to cult travel conditions now they are trying to hop on a train with their produce and travel to return to their homeland. “We need between $3 and $4 billion to reha- the provincial capital’s bustling Sao Pedro In one small village in north-eastern bilitate infrastructure and we are busy trying to market to trade. Moxico province, families returning from the “Now I can take my corn from the fields Democratic Republic of Congo were loading get foreign financing because our financial dif- and sell it in the market. While I’m there, I can suitcases, bags and bicycles onto a small buy everything else I need and take it back motorboat to cross a river because a nearby ficulties are enormous. Our priority in terms of home by train,” stallholder Maria Francisco bridge was impassable. says. But in the city of Huambo, bad roads rehabilitation is the road infrastructure in the Not only key to the movement of passen- mean good business for some. gers and modest trade, once the railway is Nimble motorbikes that can pick their provinces, namely roads and bridges.” rehabilitated it will also carry freight coming to way through the potholes and bumps are the the Port of Lobito to all Angola and beyond. preferred form of taxi for those who do not Higino Carneiro, Angola’s public works minister. The 76-year old port, which is currently have sturdy four-wheel drives at their disposal. operating well below full capacity, is relying on Entrepreneurial boys on their way home from depending on it and left the rest of the coun- this distribution network for its future growth school join in with the spirit of rehabilitation try’s infrastructure in tatters. and prosperity. by filling in holes with spades or shovels – and But after just over two years of peace, “Last year we were only working at 45 per- then erect impromptu road blocks with reconstruction is already in full swing, with the cent of our existing capacity. With our ‘mother’, lengths of string to collect their “payment”. railway acknowledged as a priority. the CFB, making a comeback, it can only be The redevelopment of the transport net- The project to rehabilitate the 1,304 km good for us,” says its director Carlos Gomes. work has also provided a raft of business line from Lobito to the Democratic Republic of He is confident of a bright future and has opportunities for many firms, both Angolan Congo border, is estimated to take around high hopes that the port can play a part in the and foreign. 18–24 months and will cost $110 million, revival of Angolan exports, to the benefit of the For many companies, the rehabilitation of according to a CFB document. whole region. the infrastructure is seen as the hub of a virtu- Government officials say the railway’s “The Port of Lobito links the CFB to the ous circle, creating much-needed employment importance for the country’s post-war devel- Atlantic Ocean and can help carry mineral and opening distribution channels to facilitate opment cannot be underestimated. riches from the Congo and elsewhere as well every facet of business. “The railway is essential for life in as bringing in goods needed by countries all Diamond industry sources, for example, Benguela and Angola as a whole. It is essential over southern Africa. All this will drive our say doing business has become a lot more in economic and social terms, as well as for future growth,” Gomes says. viable because the cost of goods supplied by the movement of both people and merchan- Ricardo agrees: “The war destroyed the road to the gem-rich areas is much cheaper J dise,” says Amaro Ricardo, economic advisor railway connection which in turn badly affect- than by air-freight. O H A to Benguela’s governor. ed the port. But the port’s link with the railway The operation to clear roads, bridges and N

B E R

The picture-perfect Catumbela station, is still really strong and the two are very, very other strategic sites of landmines is on-going G Q V I S

around 8 kms south of Lobito, would make an important for Angola,” he says. and intensive, but the deadly traps will remain T ideal set for any Mark Twain novel. Speedy reconstruction of the railway net- a reality in Angola for many years to come. Women with hand-woven baskets bal- work is all the more vital given the severe state “There has clearly been an improvement anced precariously on their heads wait in the of disrepair of many of Angola’s roads and in action on mines, including de-mining, hazy afternoon sun as resourceful young boys bridges. demarcation and education. It’s continuous. sell peanuts to earn the 10 kwanza fare to Work on a huge multi-billion nationwide But the final solution is long-term, a step-by- jump aboard on one of 14 trains that stop transport rehabilitation project is underway step process,” says one UN official. there daily. but still has a long way to go. Airports are also being revamped and “Travel by rail is a lot cheaper than going “We need between $3 and $4 billion to modernised in a bid to capitalise on increased by Candongueiro [taxi-bus], which is five times rehabilitate infrastructure and we are busy try- internal travel since the end of the war. But as more expensive. The sooner more of the track ing to get foreign financing because our roads and rail-links improve, competition is built, the better it will be for the local popu- financial difficulties are enormous,” Angola’s between the various modes of transport is like- lation,” says one official with close links to the public works minister, Higino Carneiro, ly to intensify. Infrastructure revival will not track’s rehabilitation. recently told journalists. happen overnight, but it is clear the first steps In the neighbouring province of Huambo, “Our priority in terms of rehabilitation is have been taken. a 34-km stretch carrying around 120,000 pas- the road infrastructure in the provinces, name- As the sun sets over Catumbela station sengers monthly from the capital to Caala is ly roads and bridges,” he adds. and the last train of the day slowly chugs its living proof of how rail transport can trans- The progress being made will certainly be way back to Benguela, it is evident to the smil- form lives. welcomed by people who fled to neighbouring ing and waving passengers that Angola is on Since November, rural populations mak- countries during the war, as many face diffi- the move. ❖

38 SONANGOL UNIVERSO SUMMER 2004 39 SPORT

Angolans have a formidable raw talent for basketball – and there is hardly a boy practising on the streets today who doesn’t dream of being Leap discovered and making it to the national team. of ifteen-year-old Antonio Graca is out on Angola’s Portuguese coach Mario Palma the streets. He and many of his friends will be happy if his team wins a single game, Fspend every waking moment flinging a and is proud of his boys for getting this far. basketball at a rusty hoop at the bottom of “There may be 200 countries in the world, their apartment block, staging mock tourna- but there are only 12 in the Olympics,” he says, ments and practicing their slam-dunks. after a recent intensive training session in His passion for the sport borders on the Luanda. feverish, and his unflappable dedication has “We’re just going there to play hard and Faith propelled him to “the best on the block” acco- have fun. Of course, we’re going to try to make lade, of which he is understandably proud. a good showing, but at the Olympics, every “People say I’m quite good at basketball. team playing is the best. There’s nothing like it. My brother plays really well and he’s the one It’s a competition where people give their all.” who’s helped me get better. When I’m not busy Palma thinks his unique coaching style, with schoolwork, I’m playing basketball,” he combining the techniques of American college says, breathless from his latest one-on-one basketball with a vigorous physical training bout. regime from Yugoslavia, could yet surprise Antonio, like many other young Angolans, Angola’s opponents. has ambitions to play professionally. In many “The objective of the team is always to countries, that may seem a pipe dream, but win, always to be on top,” he says. here in Angola, some of the country’s top play- It comes as no surprise to the coach, who ers have grown from humble roots to become was born in Guinea Bissau but has spent the world-class sportsmen. bulk of his 53 years in Angola, that boys on the No one knows exactly how Angola’s love street are wild about the game. affair with the sport began or why it has taken “You see, we had a war here and people such a hold on the nation. But Angolans have had a lot of problems. But they had one thing an undeniable talent for basketball, and when – basketball. So because of that, people started the national team lifted the African to say, ‘hey, basketball is our life now. It’s the Championship trophy in Egypt last year for an only thing that gives us some joy, some happi- astounding seventh time, virtually the entire ness’,” says Palma. population took to the streets in celebration. The passion for basketball runs deep in As the squad gears up for the Olympic people from all walks of life, crossing political, Games in Athens later this year – where Angola socio-economic and ethnic barriers. will be the sole African representative – the “When Angola became African champions nation is already bubbling with hopes of for the seventh time last year, people ran into another golden honour. the streets, it was incredible. That day, they “Angola can win the Olympics – we’ve got partied, they enjoyed themselves, they cried, the best players,” says Antonio. “True, it’s going they danced, they completely forgot their to be difficult against the U.S., but it’s a possi- problems for one day,” he adds. bility,” he adds, already looking forward to “The victory at that time, and other victo- seeing his team face the current Olympic ries, have helped a lot to bring this country champions. together. Basketball is one of the strongest uni- But it will be no easy task, with the team fying forces, no question about it,” he insists. T S I V also slated to come up against host nation As Palma rushes back on court to talk tac- Q G R E

B Greece and Lithuania, the European title- tics with the players, he gives the team’s star

N A

H holders. player a well-earned break. O J

SUMMER 2004 41 Miguel Lutonda is Africa’s current “Most Valuable Player”. Describing his appearance in “Angola can win the Olympics - we’ve the Sydney Games four years ago as “a dream come true”, he says he can hardly believe that got the best players. True, it’s going to he’s heading to the Olympics for a second time. be difficult against the U.S., but it's a “It’s a huge honour for me, but I’ve worked very hard to get here,” he says. “I’m possibility.” looking forward to Athens. We’ve got a lot of hard work ahead of us but I can’t wait to get there.” Antonio Graca, a 15-year-old basketball enthusiast. Pitted against the best in the world, the odds are stacked against Angola progressing far in the Games, but the future of the sport in great players. There are a lot of guys in the Africa looks bright. south with great promise but they’ve never The raw talent on the streets is nurturing a had the chance to play basketball. We’re going breeding ground of top-quality, enthusiastic to need time to get these big guys and make youngsters which, given direction and proper them into really good players, but for sure the training, could see basketball blossom on the future of basketball is in Africa because black world’s poorest continent. players are the best in the world. We all know “The quality of players will get better and that,” asserts Palma. better in the future. There are plans to find the Lanky forward Olimpio Cipriano, also on best kids playing in Africa and put them into the national team, is a prime example. an academy to train them,” Palma says. “I began as a street basketball player,” “If they do that, they are going to get some explains the 21-year-old. “Someone saw me playing and told me, hey, why don’t you play in an official team? I said that I didn’t want to,” Cipriano says. However, he was persuaded, and can now look forward to a successful career as a professional sportsman. But he still misses the rough and tumble of the street game. “On the street we play with- out any rules. It’s only about keeping the ball J

O in play. Here in the team we have rules and H A

N tactics,” he says.

B E R

G “I miss playing in the streets. Sometimes I Q V I S

T play with the kids – they love to see me in action. I sometimes teach the kids a few tricks,” he reflects, confiding that he’d also “You see, we had a war here and people spotted some talent of his own. For Antonio, still practicing on the street, had a lot of problems. But they had one thing – to be discovered would fulfil his wildest dreams. basketball. So because of that, people started to “Maybe it’s just a daydream, but some- times I think it could really happen in real life, that one of the players would come and join in say, ‘hey, basketball is our life now. It’s the only with us, see how good I am, and ask me to join the team. You never know, it might happen thing that gives us some joy, some happiness’.” one day.” ❖

Angola’s Portuguese coach Mario Palma Olimpio Cipriano, a forward for the national team, began his career as a street basketball player.

42 SONANGOL UNIVERSO SUMMER 2004 43 CULTURE

Angola’s vibrant literary culture stems from a strong oral tradition of story telling – and from the sometimes unreal quality of daily life in Angola.

hen in 1960 Agostinho Neto wrote “The generation of the 1980s is better his most famous poem Havemos de known as the ‘Generation of Uncertainties’ WVoltar (We Will Return), the seeds of exactly because of the circumstances that Angola’s independence were still being sown. Angola found itself in after independence,” The medical doctor and poet, who 15 says Isabel. years later became Angola’s first president “These writers didn’t know how the future when former colonial power Portugal granted might shape up because of the war and all its it independence, showed an incredible gift of consequences.” foresight in the lyrical and passionate depic- The most emblematic of this group are tion of his homeland. Jose Luis Mendonca, Joao Maimona, Lopito Havemos de Voltar is a patriotic tribute to Feijo, Paulo Tavares – and Anibal Simoes, who Angola, touching upon every aspect of its wrote during that period under the pen name charm, from the countryside, to natural of Baba Kimbulu. resources, to the country’s culture and people, One of Simoes’s most praised novels is ending with a rallying cry for freedom and Entre a Morte e a Luz (Between Death and independence. Light). It recounts the story of a young man J O

E That dream was realised in 1975 and the who, following the death of his parents was

F L E

M poem has become a national symbol, forced to abandon his studies abroad and I N G /

S engraved on the base of Neto’s statue, which return to a war-torn Angola, to face the chal- T O C

K dominates the capital’s Independence Square. lenges back home.

I L L

U Neto presided over the fledgling state for “Simoes tells a very important social and S T R

A just four years until his death in 1979, but he is psychological tale,” says Isabel. T I O

N still regarded today as one of the immortals of While the war certainly provided Angolan

S O U

R Angolan literature. writers with food for thought, not all of them C E “I wouldn’t be exaggerating if I said that lingered directly on the harsh realities of the the work of Agostinho Neto, in terms of its conflict. Like the people themselves, Angolan themes and its poetry, was the ultimate peak,” authors have a talent for making light of the says Arlindo Isabel, the director of N’zila, a tough situations that befall them. leading Angolan publishing house. Isabel believes Angolan writers have an While his imposing statue reminds incredible capacity for inventing situations, motorists and passers-by of his political which provide readers with an escape from achievements, just a few hundred metres away day-to-day life. in the leafy seclusion of the Angolan Writers’ Joao Melo’s Filhos da Patria (Children of Union, a larger-than-life portrait pays tribute the Country) tells the tale of a young Russian to his literary genius. woman, married to an Angolan, who travels to or Here, readers and writers of all ages crowd his country with lofty expectations based on Truth the hushed library, which contains reams of the inflated promises of her husband. both home-grown and foreign writing. An She imagines herself bathing in a tub of adjacent computer room, equipped by liquid gold, but instead ends up walking the Sonangol, offers a high-tech alternative and streets of the capital, a basin of pineapples on access to published work on the internet. her head to try and eke a meagre living. Neto’s verse continues to be enjoyed to “You see with this how Angolans have the this day and has also encouraged subsequent capacity to invent. These aren’t stories which generations of authors. Almost three decades are beyond reality because our reality is some- of war – from its motives to its consequences – times further outside fiction than fiction Fiction has also provided writers with ample material itself,” says Isabel. to explore. Ondjaki, one of youngest and best-known

44 SONANGOL UNIVERSO SUMMER 2004 45 authors on Angola’s burgeoning literary scene, death setting the wheels in motion for peace. provinces in Pepetela’s work than I did in Saturday we would sit around and listen to the agrees that the hard facts of living here often But perhaps the greatest icon of Angolan school,” he laughs. elders tell stories and today, my mother tells provide the most fantastical material. literature is Artur Carlos Mauricio Pestana, “It’s like he’s teaching you about Angola stories to my daughter.” “Luanda is a great place to live, so I would better known by his nom de plume of but in a fictional manner. Sometimes you can’t Readers, authors and publishers agree that say it’s a great place to write,” says the softly- Pepetela. distinguish the border between reality and his Angolan literature in all its forms can help spoken thinker. A front-line fighter for Angola’s independ- fiction. It’s truly an art,” he says. bring about a sense of unity and promote “It’s not just the colours and the way peo- ence, Pepetela was also deputy minister for But Angola’s literary tradition is not an art peace. ple live and deal with each other. I think we education and a leading member of the reserved for the urban and educated classes. “With the new reality in Angola, the death have a reality here, which is very similar to fic- Angolan Writers’ Union. His historical novel Oral literature has made the country’s tales of Savimbi and two years of peace, the face of tion. Sometimes I hear a story or I go to a Yaka gives life to Angola’s troubled colonial accessible to the most remote communities Angolan literature will certainly change,” says place and I say ‘Is this real?’ past by recounting the story of the white com- who are often without books or unable to read. Miguel Araujo, a student and avid reader. “If you sit in a bar with someone and you munity in his home town of Benguela, during “We have a very high illiteracy rate here, “People don’t just read what the teachers say ‘I’ll buy you a drink – tell me a story’, that the latter part of the 19th century. with maybe 70 or 80 percent of people unable tell them to read in class, they go in search of person will have a story to tell you and it will Yaka won Angola’s National Literature to read much more than the basics. In a coun- other things to read – not just for pure pleas- be a great story,” he adds. Prize in 1986 and, although a work of fiction, try like this, oral literature plays a vital role,” “Create / Create love / With dry eyes” ure, but also because it’s through reading that Angola has certainly provided Ondjaki, this book and others by him have been credit- says Luisa Rogerio, culture editor at the Agostinho Neto, Angola’s first post- they will discover and learn other things. whose real name is Ndalu de Almeida, with a ed with sparking a keen interest in history national newspaper Jornal de Angola. independence president. “Reading creates a great elasticity in the seemingly limitless flow of inspiration. among younger generations. In Angola’s most remote villages, the elder mind and allows us to understand not only our The prophetic children’s tale, Ynari, a “Pepetela is the most important living or the “Soba”, a traditional leader, is usually Menina das Cinco Trancas (Ynari, the Girl with Angolan writer today,” says Isabel, obviously a charged with reading to his people, helping to own realities but others too. Literature has a the Five Braids) is just one of six works Ondjaki big fan. “His literature is set apart from the create a sense of community. But parents and social function that allows people to identify had published before the age of 26. rest. It’s very preoccupied with the problems of grandparents also hand down stories from with each other. If you stop to understand oth- A bestseller in Luandan bookshops, the Angola and its people, without failing at the generation to generation. ers better, then you can be much more helpful book describes Ynari’s journey through war- same time to be universal. It is literature that “The tradition comes from people who when it comes to creating an environment of ravaged villages where she works her magic anyone from any background can enjoy and worked in the fields. At the end of the day they peace, which is something we need in our and eventually solves the conflicts. Ondjaki understand. would sit around the fire or the table to hear country.” wrote the story just days before Angola’s for- “His work has a strong sociological lean- stories, proverbs and riddles,” Rogerio says. Angola, as it embarks on an era of promise mer UNITA rebel leader Jonas Savimbi was ing and a lot of historical detail. For example I “Even now in modern times this tradition and growth, can look forward to a new chapter killed on the battlefield in February 2002, his learnt more about the history of the Lunda goes on. When I was a young girl, every in more ways than one. ❖

child, when a schoolroom exercise helped him “It’s relevant to Angola because now, after I see in the street. I find music really stimulat- Free Spirit discover what he describes as his “spiritual val- the war, we need to look for a new, more har- ing too. I love African and black American ues”. But it was during his time as a political monious path which will lead us to a better music. When I’m trying to finish a book, I can Prize-winning verse prisoner that he really cut his teeth as a bud- future,” he explains. sit for months on end just listening to African ding literary genius. “Tàbua is a hymn of love. Everyone who music playing over and over again. It helps my inspired by captivity. “The changing point for me was my time in reads it will understand that we need to brain work and enhances my writing.” prison. Before that, the theme of love was very embrace the noble values of life, and recognise Although it usually takes time for his ideas Adriano Botelho de Vasconcelos prominent in my written work, but the second each other as humans beings,” he says. to ripen, entering the Sonangol competition takes off his spectacles and wipes his part of my literary career was more focused on These days, Vasconcelos likes to look with- provided Vasconcelos with an extra incentive brow. The co-winner of the 2004 oppression,” says the 47-year-old poet. in himself, his immediate surroundings or to his to quicken his pace. Sonangol Literature Prize has had to get The experience completely changed his four daughters to gather the thoughts that he “I worked on Tàbua for more than three used to fielding many questions after outlook on the world. releases onto the blank page – usually at night. years. In fact it was only because of the coming away with a $12,500 award for a “More or less all my poetic lyrics are from “I find ideas mature throughout the day Sonangol Prize that I completed it so quickly. collection of poems, Tàbua. this time, because all the romantic notions I but the act of writing happens best in the most I’ve already been working on my next book, Vasconcelos was jointly awarded had about guerrillas being concerned with silent times. Actually, most of my writing hap- my ninth, for four years. But it’s going to come the $25,000 prize with the Cape Verdean love and human values ceased to exist,” he pens at night. Having said that, I’m not a poet out this year,” he laughs. poet Vera Valentina “Di Ana”. However, says. of insomnia, I’m not someone who writes until Winning the award has been a tremen- the writer is well prepared – his life, his Tàbua, Vasconcelos’ latest collection, five in the morning. I prefer to have a good dous accolade. works and the inspiration behind them, which brought him the Sonangol Prize, is a night’s sleep,” he says. “The Sonangol prize is very important, make for a good story. personal tale of learning from past mistakes “My inspiration comes from day-to-day very prestigious, a great honour, and it gives Vasconcelos began writing as a young that is yet applicable to Angola as a whole. life, like the small gestures people make, things authors like me a lot of visibility.”

46 SONANGOL UNIVERSO SUMMER 2004 47 TOURISM

2004’s epic journey will cover around route requires meticulous preparation. 14,000 kilometres – almost three times the dis- Many of Angola’s roads are still in a seri- tance covered in last year’s expedition, ous state of disrepair but intensive work is criss-crossing the country from the northern underway to rebuild the country’s infrastruc- enclave province of Cabinda to Moxico in the ture. New stretches are being reopened almost east, and down to Cunene on the southern every week, which means maps are often out border. It will be the first time that the rally has of date even before they go to print. covered the entire country. This constant state of flux, coupled with a “We want this 2004 ride to be symbolic. need to keep up-to-date with the landmine The vehicles will start rolling in Cabinda and clearance programme, means that continuing progress through all 18 provinces of Angola. dialogue with the relevant authorities and ‘Cabinda to Cunene’ – that’s going to be the local people is vital. slogan,” says Jorge Portugal, who pioneered “We go to great lengths to ensure that the the first Ride Cacimbo in 1991. roads we take are safe by talking to the author- Back in the early days, the annual tour ities and other drivers. We’re doing this for fun, was much more modest, travelling only from but we realise that there are a lot of people the capital, Luanda, to Lubango in the south. who travel these roads in their daily jobs so Angola’s civil conflict put paid to the trip they are the people who really know the state between 1993 and 1995, but Jorge kick-started of play. We have to use their knowledge,” Jorge it again in 1996 and has not looked back since. explains. S O T

N Accompanied by a band of adventure-lov- Much of the hard work begins at home A S

O

L ing travellers, Jorge spends most of August on with each team responsible for equipping A D

N the road, discovering Angola’s secondary itself with sturdy camping equipment, cool routes and camping in small towns and vil- boxes, jerry cans and jacks. Another lages, which – even by Angolan standards – are Each traveller must bear that cost, which well off the beaten track. Jorge says can range from $3,000 to $10,000. His brainchild, which he admits occupies It’s up to individuals to buy their own kit, but most of his spare time, attracts all sorts of peo- good quality gear is more a necessity than a ple and is not just aimed at thrill-seekers. luxury. “Last year there were 54 in the group. “When you’re travelling along bumpy roads Each one of us is very different, but we are all day, you really appreciate being able to sit by Country bound by the common love of our spectacular the fire in the evening, eat a reasonable meal Angola has 18 provinces, many of which country and the fact that we’re all really anx- and have a decent night’s sleep,” he says. ious to be allowed to visit and explore it “Remember, we’re camping most of the time.” are very beautiful, but few Angolans have ever again,” he says. In addition to the cost of equipment, each “A lot of us travelled in the years before traveller must pay a $250 sign-up fee during seen beyond their own towns and villages.An independence in 1975 and we know there are the June registration period – an incentive not many beautiful places. Most people only know to drop out at the last minute. With a strong ambitious countrywide road rally now aims to Luanda and the main towns of the provinces, team spirit vital to safety, it is important that so they can’t really say that they know Angola.” the participants stick together throughout the open up the country to its own people. Ndalo Santos, one of last year’s adventur- entire trip and its run-up. ers, couldn’t agree more. Born in the year The $250 also covers the cost of high-tech before war broke out, Ride Cacimbo 2003 was radio equipment, which keeps the convoy in t’s one of the most visible signs that life is way through the beautiful Angolan country- his first chance to see much of his country contact so that those in the front can warn the getting back to normal in Angola: a brigade side. beyond the capital. others about potential dangers, breakdowns, Iof adventurers-on-wheels is gearing up to Much of this immense country was inac- “In Luanda, few people have a perception or accidents. discover what the hinterland of the country cessible during 27 years of civil war. Millions of about what is going on in Angola because they “It is more of an expedition – an explo- has to offer. people were forced to flee to the big cities or never travel anywhere. I always knew that if I ration of our country. We’re not in a rush. For Organisers are busy putting the final neighbouring countries and those who stayed really wanted to learn about my country, I safety’s sake it’s important that we don’t take touches to a plan that will take dozens of four- behind were more focused on survival than would have to get out of the capital. risks. Our golden rule, which is emphasised wheel drives on a mammoth cross-country appreciating their own country’s stunning “It was always a dream of mine, to just get over and over again before we go and during trip to explore all of Angola’s 18 provinces. landscapes. in the car and drive through Angola. But I the trip, is that no one gets left behind. We wait N

Dubbed “Ride Cacimbo” (Winter Ride) With Angola now entering its third year of never thought I’d do it,” he says. and help each other,” Jorge says. D A L O

because it takes advantage of the cool and dry peace, a new reality is being established as Planning the journey begins months Finally, after months of pouring over S A N T

month of August, the convoy will weave its people are able to travel much more freely. before departure day and determining the maps, importing top-notch kit and intense O S

48 SONANGOL UNIVERSO SUMMER 2004 49 Gabon Congo

Democratic Republic of Congo

Atlantic

N Ocean D A L O

S A N T O S

training to reach tip-top physical condition, us a lot with their service stations, guest-hous- the doors bang shut and the handbreaks are es and places to park,” Jorge says. released. For those who take part in this journey of As Santos skims through the hundreds of rediscovery, it can change their entire outlook photographs he took during last year’s trip, his on life. Santos now has ambitions to quit the sense of excitement returns. capital and move south to Lubango. “The trip was even better than I expected “When I came back I decided I didn’t want it to be. We saw so many things we didn’t even to live in Luanda any more. It’s much too know existed, or thought would be completely crowded. I want to live in Lubango – it’s a Angola ruined.” beautiful city with a cool climate, very quiet, “Travelling by car is so different from tak- not much trouble, nice people – it’s just per- ing the plane. You get to see more and you feel fect,” he says. much closer to the reality – the beauty of the But the journey also illustrates how landscape and the beauty of the people,” he Angolan people are beginning to change the says. their own country for the better. The journey took him and his two truck- “In Kuito, which was most damaged by the mates through the pretty streets of Lubango to war, you can see that they are busy recon- the spectacular deserts of Namibe, even dip- structing the city. Local people are busy ping into northern Namibia. planting in the fields and selling fruit and veg- But for Santos the most memorable part of etables in the streets. There’s a lot of goodwill Zambia the experience was arriving in Kuito, the capi- and determination around. People are really tal of Bie province, which came under heavy willing to do things. It left me feeling really fire during the war. optimistic and hopeful for the future,” says “Kuito was a great place. The buildings Santos. looked very bad but the people were just fan- “In Luanda you see the tough side of the tastic. When we arrived, we were treated like streets, but when you get on the road you see TV stars. People were lining the streets, cheer- the better side of Angola, the virgin side, the ing and clapping. They gave us such a warm side nobody hears or talks about.” welcome,” he recalls. Jorge agrees: “You know, the people inside As part of the planning process, local the country are so happy when we roll up in authorities are notified in advance of the con- their towns. It gives them an important sign of voy’s arrival, which enables sponsors such as change, of peace and of normalisation. We can Sonangol, and other supporters to prepare the see in their eyes that they have hope, that Namibia route. things are getting better and better – and you “Sonangol has provided fuel, lubricants can imagine what a fantastic sensation that and assistance every year. I must say they help gives us inside.” ❖

50 SONANGOL UNIVERSO

CONTENTS Editor’s letter

Of the 900,000 barrels of oil pro- INSIDE: SONANGOL INSIDE: ANGOLA

duced every day from Angola, only a C O R B I fraction is produced by Sonangol itself. S 20 Liquid Assets 32 Picture Perfect This imbalance is about to be rectified, Angola LNG, an ambitious venture to capi- Benguela’s tree-lined streets are among with Sonangol’s production and explo- talise on the country’s high volumes of gas, the most pleasing in Angola – and it is ration arm, Pesquisa & Produção (P&P) will bring significant economic, social and small wonder that its citizens seem to rolling out a comprehensive expansion environmental benefits to Angola – and smile a lot. programme. make future offshore oilfield developments Already, the company has made its more attractive. first overseas move, acquiring a stake in a 36 Trainspotting

L Restoring its railway infrastructure is cen-

promising block in Gabon’s offshore. Now A U R

E Sonangol N tral to reviving Angola’s entire transport

it is poised to bid for both onshore and T

Z Rua 1° Congresso do MPLA, N.º 8-16 Y L

offshore blocks in Angola’s forthcoming B system. Caixa Postal 1316 E R

M Luanda A

licensing round. N

/ República de Angola G R

A Telephone: +244 2 391 182

The prospect of new exploration in P H 40 Leap of Faith I

X Fax: +244 2 391 782

I

Angola’s prolific offshore blocks is causing M

A Angolans have a formidable raw talent for Telex: 2089 SONANG AN G E

considerable excitement among interna- S Email: [email protected] basketball – and there is hardly a boy prac- tional oil companies. New acreage in Sonangol USA (Sonusa) tising on the streets today who doesn’t 1177 Enclave Parkway Angola has not come up for bidding in a dream of being discovered and making it to Second Floor decade and competition is likely to be Houston,TX 77077 the national team. USA fierce. The end of the war means that Telephone: +1 281 920 7600 onshore blocks will also be available for Fax: +1 281 920 7666 Email: [email protected] the first time in 25 years, heralding the 24 Live Culture 44 Truth or Fiction Sonangol U.K. possibility of indigenous companies enter- Sonangol is committed to making the shift Angola’s vibrant literary culture stems from Merevale house ing Angola’s upstream sector. from an organisation in which connections a strong oral tradition of story telling – and Brompton place London SW3 1QE Angola is already acknowledged as a held sway, to one that is tightly defined and from the sometimes unreal quality of daily United Kingdom world exploration hotspot, and this period performance-based. Telephone: +44 207 838 4600 life in Angola. Fax: +44 207 589 9454 of intense interest in the country’s poten- Telex: 893212 SONANG C

tial comes at a time of transformation H

R Sonangol Asia I S T

within Sonangol. The company is restruc- 28 Safe Conduct O 3 Temasek Avenue P H

E 31-04 Centennial Tower

I

turing and implementing new policies in Sonangol has never had a serious accident L L

E Singapore 039190 M A

areas from human resources to health and or oil spill and the company wants to keep S Telephone: +65 64 16 3583 S E

N Fax: +65 64 16 3582 safety – at the same time as pursuing it that way, implementing a major invest- E mega-projects such as a proposed $3 bil- ment programme to ensure standards This magazine is produced by lion LNG plant. across departments. The Impact Media Group for Sonangol. As Sonangol starts to expand the Impact Media Global Ltd scope of its activities, its influence is ever 3 Hanover Square London W1S 1HD,UK C

H Tel: +44 20 7529 6000 ~ Fax: +44 20 7629 0700

more palpable in Angola. Sonangol spon- R

8 Deepwater Frontier I S T

O Publisher: John Charles Gasser

sors poets and novelists as well a broad P A new bidding round for the vast acreage of Angola’s deepwater will soon be under H Director: Sheila O’Callaghan E

I L Editor: Will Wareing range of reconstruction activities. It is even L E way – a tantalising prospect for reserve-hungry oil majors. Onshore blocks will M Editorial Consultant: Christophe Illemassene A 48 Another Country S

supporting a road rally aiming to open up S Art Director: Lisa Pampillonia E

also be available for the first time in 25 years. N E Angola has 18 provinces, many of which Cover: Laurent Zylberman/Graphix Images: the little-known interior of Angola – under- construction of a suction anchor in the Sonamet yard. lining the fact that Sonangol is a leading are very beautiful, but few Angolans have All rights reserved. No part of this work may be reproduced or transmitted in any form or by any oil company making a contribution to its 14 Learning Curve ever seen beyond their own towns and vil- means, electronic or mechanical without prior permission in writing from the publishers. country in so many more ways than oil. Sonangol’s growth strategy hinges on gaining a bigger share of the country’s mil- lages. An ambitious countrywide road rally lion-barrel domestic oil production, and then leveraging its home-grown skills to now aims to open up the country to its Will Wareing become an international operator. own people. SONANGOL

4 SONANGOL UNIVERSO SUMMER 2004 5 NEWS IN BRIEF

Great Flexibility In Deep Water Transparent Success

The opening of a new factory to manufacture umbilicals for the connection Spring saw the announcement of a raft Angola could soon see loans vital to of underwater wellheads and other subsea hardware to production facilities, of promising deepwater oil discoveries in post-war recovery coming its way after a was both a ‘first’ for Angola and also for Africa. offshore Angola. In March, BP and trial deal on fiscal and monetary policy Angoflex Limitada, located in Lobito, is a joint venture between French Sonangol announced that they had struck with the International Monetary Fund. engineering and oil services provider Technip and Sonangol. The plant, com- oil with the Cesio-1 and Chumbo-1 wells in Keen to increase transparency and pleted at the end of last year, will manufacture steel-tube umbilicals and related Block 18, bringing to eight the number of improve relations with international equipment for Angola’s large number of deepwater oil developments. Personnel discoveries there to date. Both wells were lenders, the government has pledged to at the plant were recruited locally and have received extensive training at drilled by the semi-submersible rig, Leiv reveal oil-related financial information and Technip plants in Brazil, the U.S. and the UK. Eiriksson, in 1,600 metres of water some publish an analysis of the oil sector carried Technip, in partnership with fellow oil services contractor Stolt Offshore, 170 kms and 200 kms respectively off the out by consultants KPMG and supported recently won a $730 million development contract from BP for the offshore Angolan coast. by the World Bank. Greater Plutonio field, which lies at 1,500 metres in Block 18. Chumbo-1 flowed oil at a rate of 1,080 As part of this effort to open up, the Technip and Stolt will design, fabricate and install the development’s 16 submarine struc- barrels per day (bpd) in a test undertaken government has also promised to end fuel, tures fitted with reeled pipelines, rigid flow-lines and umbilicals – part of the latter to be to evaluate the oil formation, while the electricity and water subsidies by the year’s manufactured by the new plant. partners have not given a flow rate for end. Petrol pump prices were raised by Cesio-1. Further work will be undertaken 67% in May. The IMF has said it will send to evaluate the full extent of both discover- experts to assist Angola in implementing Guinness in Gabon ies, says BP. reforms. Oiling the Also in March, ExxonMobil subsidiary “The trial programme will show Ta x Esso Exploration Angola, and Sonangol, Angola’s commitment to play by the rules,” In its first move outside of Angola, Regime heralded the seventeenth deepwater oil Deputy Prime Minister Aguinaldo Jaime Sonangol was joined in February by Irish discovery in Block 15. Bavuca-1 was drilled said recently. oil independent Tullow in drilling the In preparation in 1,094m of water to a depth of 2,325m Angola, Jaime added, was Kiarsseny Topaze South-1 exploration for the country’s and flowed oil at a rate of 2,726 bpd during willing to have its governance well in offshore Gabon. forthcoming licensing testing. rated under the “peer review” After drilling to a depth of 2,938 round, Angola’s According to Esso, Block 15, located mechanism of the New metres, tests showed that no significant Cabinet Council in 350 km north west of Luanda, holds a Partnership for Africa’s quantity of recoverable oil was present. late March approved a draft law on petro- potential 4.4 billion barrels of oil equiva- Development (Nepad). The well has been plugged and aban- leum sector taxation. The new law is lent. The block’s other participants are BP, Eighteen out of the conti- doned, but the information obtained designed to level the playing field for local Italy’s ENI and Norway’s Statoil. nent’s 53 nations have will be evaluated further to better under- and foreign companies hoping to exploit Late in April, Total and Sonangol volunteered to be evaluated stand the geological character of the Angola’s vast reserves, and also for compa- announced a second find in Block 32. The under the review, which plans nearby Topaze discovery. nies operating in other sectors of the test well, Canela-1, was drilled in 1540m of to demonstrate that govern- Meanwhile, plans continue for the petroleum industry. water and flowed at a rate of 6800 barrels. ments in Africa are making exploration programme of the prospec- With this draft, the Government seeks It follows the discovery of Gindungo-1 last changes in order to encour- tive Kiarsseny Marin licence area which to harmonise the various fiscal regimes year. Total is the operator with 30% of the age flows of cash and covers 5,442 sq. km, and lies predomi- applicable to oil activity on its territory, block equity, with Sonangol’s stake at 20%. investment. nantly in shallow water. Tullow’s chief particularly taking into account tax on executive, Aidan Heavey says: “We revenue from oil production and its distri- remain confident that this very large bution among production sharing Cabinda Extension licence contains a number of prospects partners. and plays, which are the focus of an Chaired by President Jose Eduardo aggressive exploration programme. We dos Santos, the meeting also approved a The Council of Ministers has approved the extension of the ‘Block Zero’ concession in off- are pleased that Sonangol P&P have draft law on a dedicated customs regime shore Cabinda for an additional period of 20 years until 31 December 2030. The block is decided to join us in this licence in for the oil sector, which determines the operated by Cabinda Gulf Oil Co. (39.2%), an affiliate of ChevronTexaco, in partnership with Gabon and we look forward to further rules governing the running of petroleum Sonangol (41%), France’s Total (10%), and Italy’s Eni (9.8%). co-operation with them elsewhere in operations in the country and aims to “This step is obviously very important,” said a spokesman for ChevronTexaco in early April. Africa.” treat all investors equally. “What we need next is approval of the extension agreement from the National Assembly and Sonangol has a 10% stake in the Due to the level of investment we are very optimistic this will be concluded shortly.” Indeed, approval was received in May. licence, with Tullow, as operator, holding required for oil activities, the new customs Block Zero contains areas A, B and C and its production of 550,000–600,000 bpd accounts 47.5%. Addax Petroleum, the Nigeria- regime will differ from the one currently for up to two thirds of Angola’s total output. Block Zero will provide a substantial volume of the based upstream subsidiary of Addax in force for all other economic activity. gas to feed the new liquefied natural gas (LNG) plant, planned at Soyo by the Angola LNG con- Oryx, holds the remaining 42.5%. sortium, also operated by Cabinda Gulf Oil.

6 SONANGOL UNIVERSO SUMMER 2004 7 CONCESSIONS Deepwater Frontier

A new bidding round for the vast acreage of Angola’s deepwater will soon be under way – a tantalising prospect for reserve-hungry oil majors. Onshore blocks will also be available for the first time in 25 years. S E G A M I

X I H P A R G / N A M R E B L Y Z

T N E R U A L Angola has firmly cemented its position as The opening up of acreage in Congo Basin blocks 15, 17 and 18, partly exploited by one of the upstream hotspots of the world ExxonMobil, Total and BP, is likely to generate New Generation of Blockbusters the greatest flurry of international interest, in recent years, with all the supermajors given the high volumes of reserves already dis- covered. Due to the size of these blocks – an It is not only a language and cultural reads like a Portuguese horticulturalist’s flocking to exploit its vast potential. average 5,000 sq km – large sections have been similarities that Angola shares with Brazil: its handbook, with Perpetua, Zinia, Jasmim, relinquished to Sonangol under the original geological character mirrors that of the lat- Rosa, Linia, Tulipa, Orquidea, Cravo, exploration contracts. For example, Total has ter’s prolific Campos Basin on the other side Camelia, Violetta and Anturio as further evi- Few things excite international oil compa- exploited only half of Block 17 since the incep- of the oceanic divide, a hangover from mil- dence of the sweet smell of success. nies more than a licensing round in a country tion of its activities a decade ago. lions of years ago when South America and Block 15 has also seen a string of finds. Angola plans to offer relin- already known to have huge hydrocarbon Prospects in blocks 23, 26 and 27 are less Africa were still joined. Last year’s Kakocha-1 and Tchihuma-1 wells, quished acreage in blocks 15, potential. So interest is expected to be high well known. Sonangol is keen to see oil com- The giant fields of the Campos Basin, announced in October 2003, were operator 17 and 18, virgin territory in blocks 23, 26 and 27, and some this year when Angola makes available relin- panies take on these blocks in order to get a such as the 3 billion barrel Roncador, are ExxonMobil’s latest strikes. Estimated onshore blocks in the Kwanza quished and virgin acreage both onshore and better idea of their potential. Because of the blueprints for some of West Africa’s most reserves are in excess of 4 billion barrels of Basin in its licensing round offshore. comparative lack of data on them, managers prolific acreage off Angola, which is some oil equivalent, with 17 commercial finds and later this year. On the cards are three offshore blocks in say they would be happy to see companies ten years behind Brazil in oil exploration only two dry wells out of 26 drilled to date. the Congo Basin, three virgin offshore blocks drill fewer wells, rather than enter into a big terms. In Block 18, BP has announced eight Cabinda in the Kwanza Basin and acreage in the same contract for commitment wells, in order to Angola plans to offer relinquished commercial discoveries out of a total 10 basin onshore – the latter having seen no enhance knowledge of the area’s potential. acreage in blocks 15, 17 and 18, virgin territo- wells drilled, including those spudded in exploration for a quarter of a century. “There is some interest in this area and we ry in blocks 23, 26 and 27, and some onshore 2003. All the discoveries are Estimates of possible reserves are between want to offer it,” says Morais de Brito. “With blocks in the Kwanza Basin in its licensing named after metals: Platina, Soyo 35-50 billion barrels, and new finds, it is these blocks, it might be the case that more round later this year. Plutonio, Paladio, Galio, hoped, will help Angola to reach its plateau exploration works needs to be done – but with International oil companies have Cromio, Cobalto, and the production target of 2 million barrels per day fewer commitment wells, so that we can get a flocked to Angola to exploit what have most recently announced, 15 by 2008. Although this figure is more than decent evaluation of the area, as it is virgin ter- turned out to be substantial reserves. The Cesio and Chumbo. double the 923,000 barrels per day produced ritory.” drilling rates achieved offshore, averaging Prospects for blocks 23, 26 and 17 in 2003, company executives stress that it is The company’s offshore plans stretch to around 80 percent, have been called “noth- 27 in the Kwanza Basin are an 18 sustainable in the long-term. ultra-deep water acreage, in depths of 3,000 ing short of astonishing” by industry unknown quantity, say analysts, Angola is one of the African continent’s metres or more, which will be offered for commentators, reaching levels substantially because as virgin territory they have Luanda most prolific oil-producing nations, ranking exploration in 2006. higher than those of a typical frontier region. seen no prior exploration. The suc- second in sub-Saharan Africa, behind Nigeria. Angola has traditionally been the playing It is this impressive track record that attracts cess of exploration carried out Kwanza The country has firmly cemented its position field of the majors, but Sonangol now plans to participants to bid for acreage relinquished elsewhere in the Basin has been Basin as one of the upstream hotspots of the world open up opportunities onshore to reach a by these companies. sporadic. In June 2001, ExxonMobil in recent years, with all the supermajors flock- broader spectrum of participants. It hopes to “These strikes rates are pretty high,” reported the first find on Block 24, ing to exploit its vast potential, and being licence three to five blocks in the Kwanza comments regional analyst James McLennan adjacent to Block 23. Semba-1 rewarded with handsome discoveries. Basin this year, and could see the area’s first of Wood Mackenzie. “Angola is seen as a real flowed 3,000 bpd from two reser- Now, some years after the likes of production in five years’ time. hotspot. One could expect to see the compa- voirs but was later declared ExxonMobil, BP, Total and ChevronTexaco first “We have what we call the ‘Pilot Project’ nies that are relinquishing this acreage uncommercial. Block 24 is now 23 signed up to drill in Angolan waters, compa- in Kwanza onshore,” Morais de Brito says. bidding again, but that doesn’t mean there operated by Devon Energy. 26 nies can capitalise on the calmer internal “Here, we are trying to implement ways to get won’t be plenty of others there too.” “Open blocks 23, 26 and 27 are Lobito political situation and boost production. local companies involved and also give some Perhaps the most prolific of the deep- located within the southern Kwanza 27 Benguela Mateus Morais de Brito, Sonangol’s direc- room to small and mid-size companies. As water blocks already partly explored is Block Basin which has been extensively tor of exploration division, says the first there has been no exploration there for 25 17, operated by Total. The block has enjoyed explored but with little success,” licence awards could be made in the third years, it’s quite a challenge, but also a good a very high strike rate, and fifteen fields have comments Wood Mackenzie’s quarter of this year. opportunity for indigenous firms.” been found to date, including the huge McLennan. “We have had a lot of discoveries in the Congress is due to ratify the launching of Girassol and Dalia fields with up to 1 billion However, it is this very variety Congo Basin, but right now production is the onshore activity in June or July, and will barrels of oil reserves apiece. The most of acreage on offer that means the declining in the Cabinda area, so we need to also approve the size of the blocks and the recent finds are Acacia and Hortensia, both new Angolan licensing round is Namibe do more exploration work in order to compen- exploration packages to be offered. “We are announced in April 2003, testing at impres- being keenly anticipated by majors sate for this decline,” Morais de Brito says. trying to attract local companies so therefore sive rates of 13,712 barrels per day (bpd) and and independents alike. The next “We’ll start this now so that after three or we need to come up with attractive packages 5,092 bpd respectively. generation of discoveries is just four years of exploration, we’ll have another for small and medium-sized Angolan compa- Total’s list of field discoveries in Block 17 waiting to be made. four or five years of development on site nies,” explains Morais de Brito. before getting into production.” continued on page 12

10 SONANGOL UNIVERSO SUMMER 2004 11 Democratic Republic of Congo Angola’s onshore basins, with Kwanza basin enlarged. helping Angola to achieve and maintain its “The bottom line is we Congo production targets. Basin Onshore, Sonangol is also taking care to have a responsibility to all S.Tiago Kassanje avoid any potential issues with the local popu- Graben Luanda Cacuaco 0 10 20 30 lation and to minimise environmental impact. Luanda kilometres Basin Angolans. We must bring Funda Kwanza Drilling in areas such as the Kwanza Basin will Quenguela Basin QN-2 Zango be a new experience for a whole generation. Benefica K them the best. That is part w Bom Jesus a “We are studying all these issues in great n z detail, the social projects that will be imple- of our vision.” a Cacoba B mented, what incentives there will be for a s Galinda i Sangano Tobias Muxima n locals, and whether we might need to help •Dondo Namibe Mateus Morais de Brito Cabo Okavango Zambia relocate some populations. When this acreage Ledo Pitchi Basin Basin is released we will have more to say on these Tuenza Longa matters,” Morais de Brito assures. exploration drilling success, with over 200 dis- A data room will be opened in Sonangol’s coveries made to date,” says regional expert Morro Liso Etosha Basin representative office in Houston, Texas, in July Catriona Boggan at Wood Mackenzie. “The to present the acreage on offer to the interna- new licensing round will be eagerly awaited by Dry hole tional oil industry. As if the prospective both major oil companies and independents Dry hole w/ oil shows reserves were not enough, the approval of a alike. Companies that missed the boat in pre- Oil field Namibia new draft law on petroleum activity taxation vious licensing rounds will be keen to obtain Gas field •Porto Amboin by Angola’s Cabinet Council last March will some of Angola’s prized acreage.” help to further whet the appetites of potential Companies that are successful in the licence bidders. licensing round will be rewarded, but they will The round will be the best chance in a need to bring with them knowledge, expertise “Here [in the Kwanza Basin], we are trying to their capability and their involvement will be decade for Angolan veterans such as and the newest technology. sanctioned by Sonangol.” ExxonMobil or Total to expand their portfolios, “The bottom line is we have a responsibil- implement ways to get local companies In a similar vein, it is planned that and for new entrants to the country’s ity to all Angolans,” Morais de Brito concludes. Sonangol will take an as yet undetermined reg- upstream to get a foot in the door. “We must bring them the best. That is part of involved and also give some room to small ulatory role in licensed blocks in order to “Angola continues to enjoy world-class our vision.” ❖ oversee the implementation of policy. and mid-size companies. As there has been no As far as reserves go, prospects onshore are largely an unknown quantity. “We do have exploration there for 25 years, it’s quite a chal- some figures, but we need to employ new lenge, but also a good opportunity for technology to see exactly what the potential is,” says Morais de Brito. “What we know is indigenous companies.” that the oil system is there. It is proved that there is oil. But now we can use new technolo- gy in the areas that were originally explored Mateus Morais de Brito, and produced oil 25 years ago, but where Director of Sonangol’s exploration division. operations were halted because of the war. This will give us better numbers in terms of the area’s potential.” Sonangol is in the throes of establishing a Further exploration of the onshore Congo commission that will assess the capabilities of Basin, already producing 14,000 barrels per each company wishing to exploit the onshore day, is on the radar screen too. “Total is pres- tracts. Local companies may form alliances ent in the Congo onshore area and our plan with international independents for the here is for Sonangol to do some more explo- acreage, which would boost local involvement ration work,” Morais de Brito explains, S E G while enabling the necessary new technology although mapping of the area, around the A M I

X I

to be employed. town of Soyo, will be necessary due to land- H P A R

“It’s not just a question of coming to us, mines remaining from the war. G / N A

saying you have a company and you work in In addition, a 100,000 km survey of the M R E

B Angola continues to enjoy world-class L

the oil exploration business,” Morais de Brito Okavango, Etosha and Kassange Graben Y Z exploration drilling success, with over T

continues. “We are trying to create a transpar- basins is underway in partnership with seis- N E

R 200 discoveries made to date including U A

ent process. Companies will have to prove mic specialists Fugro Airborne, all aimed at L the huge Girassol and Dalia fields.

12 SONANGOL UNIVERSO SUMMER 2004 13 L A U R E

N EXPLORATION & T

Z Y

L PRODUCTION B E R M A N / G R

A Sonangol’s growth strategy hinges on gaining P H I X

I M A

G a bigger share of the country’s million- E S barrel domestic oil production, and then leveraging its home-grown skills to become an international operator.

ngola is putting the pieces in place to might seem an ambitious goal for an operating join the premier league of oil-produc- company that was only established in 1991, Aing countries, as a new era of peace but for one extremely important considera- signals a fresh phase of investment and pro- tion: Angola has copious offshore oil reserves, duction. State-owned oil firm Sonangol is at and there can be few better training grounds the heart of Angola’s plans, working to ensure to master the prospecting, research and pro- that the country will benefit not only from its duction of hydrocarbons than in Angola’s oil domestic oil production, but from internation- fields. al operations as well. The importance of Angola’s offshore sec- Sonangol’s upstream wing, Pesquisa & tor is reflected in the fact that practically every Produção (P&P) – Portuguese for exploration major oil exploration and production compa- and production – is the vehicle through which ny in the world has taken a stake in developing parent company Sonangol Empresa Publica the country’s deepwater crude oil potential. (EP), will pursue its ambitious domestic and overseas energy production goals. Sonangol P&P has already begun to par- Geology and Geophysics ticipate in energy operations outside Angola’s Sonangol has set itself some tough targets. borders, acquiring a 10 percent share in It currently produces less than 1 percent of Gabon’s Kiarsseny Marin Block, where it is in a Angola’s oil output of around 1 million barrels partnership with Ireland’s Tullow Oil and per day. That output level is set to double to 2 Geneva-based Addax Petroleum. Now P&P has million bpd by 2008, if Angola’s expansion set its sights on existing opportunities off the plans are realised. Sonangol P&P’s chairman, coasts of Equatorial Guinea and São Tomé & Sebastião Gaspar Martins, says that the com- Principe, positioning itself for a role as a key pany should eventually be responsible for regional producer along the coast of West between 20-40 percent of the country’s total Africa within the next 10 years. production. Sonangol P&P has a straightforward strat- Gaspar Martins admits that achieving his egy for breaking out of the domestic sphere company’s goal is a big challenge – especially and establishing itself as an international pro- given the resources of other companies oper- ducer. First, it will sharpen core onshore and ating in the market. But by producing in offshore exploration and production skills at shallow water blocks, exploring in deepwater home. With financing becoming easier to blocks, and learning from its international obtain, Sonangol P&P should have little prob- partners, P&P is, he says: “Creating the right lem gaining funds to access oil fields – environment to be accepted as a world-class Learning particularly with Sonangol EP itself restructur- operator”. ing to act as a finance house that will partially Becoming a first-rate operator involves far alleviate P&P’s limited monetary ability to bid more than just exploration and production, for blocks. according to Gaspar Martins. Other core skills The second part of the strategy is that needed in achieving successful offshore opera- after gaining experience off Angola’s own tions are the efficient management and shores, P&P will be ready to take its explo- understanding of vital aspects such as drilling, ration and production skills into the reservoir and facilities technology as well as international arena. the establishment and implementation of a Curve Becoming a major international operator clear decision-gate process to run all the

14 SONANGOL UNIVERSO SUMMER 2004 15 “Before it was decided to open the offshore blocks of Brazil to international oil companies, Petrobras was given preference in the best S E G A M

blocks. Later when it built up I

X I H P A R G

capacity, that preference was / N A M R E B L

removed. Although we have Y Z

T N E R U

a different historical back- A L

ground, I think that is what exploration activities in Angola’s offshore An ideal longer-term objective is for the P&P gained significant skills and Block 4, targeting an exploration well with a mother company, Sonangol EP, to develop an knowledge through operation of Block 34, regardless of results. The should happen for the next high probability of success, and is also in the in-house research and development (R&D) firm’s immediate priority now is preliminary development phase of a field department, which would allow a gradual continued exploration.

E licensing rounds[with P&P].” N

E called Morsa West, located offshore in Block 2. reduction of outsourcing dependency and S S A

M Serious involvement in the increase of increase in-house knowledge. Gaspar Martins E L L I

E know-how on offshore facilities technology is a equates developing R&D skills with acquiring H

P Sebastião Gaspar Martins, O

T long-term objective, but for the moment P&P new expertise in locating and extracting oil. S I R

H Sonangol P&P’s chairman.

C is focusing on developing its subsurface tech- This involves managing possible problems nology management skills in order to be able with deepwater production, such as falls in to find more oil. The majority of surface facili- temperature that can increase the viscosity of activities performed by the company, includ- reserves, P&P has already made 3-D seismic ties technology functions are currently oil and prevent it flowing. Sonangol EP is cur- ing development projects and service surveys of the entire block and has one more outsourced. rently weighing the costs and benefits of contracts. well to drill. Furthermore, P&P is only in the For example, the Ocean Producer floating developing an R&D expertise, but it is not yet a As a result, P&P is focusing its efforts on third year of the initial four-year contract, to production, storage and offloading vessel clearly stated goal for the company given other the study of the sub-surface geological and which it can request a second exploration (FPSO) is charged with the marine side opera- priorities. geophysical aspects of production off Angola’s period. tions of Angola’s Block 3. But production own coast. The firm is honing its skills as the operations and reservoir management of the operator of offshore Block 3 (Canuku area) and field itself is run by P&P’s office staff, who work Individual Attention also in a contractor group including Norsk Hydrocarbons closely with the FPSO operators and provide Despite P&P’s fairly recent arrival on the Hydro, Petrobras, Shell and ConocoPhillips on on the Horizon logistic support. oil production scene, it is already facing the exploration of the ultra deep Block 34, in The potential for large finds in Angola’s With more and more deepwater blocks demands to forego favouritism in the upcom- which P&P is the operator and Norsk Hydro offshore is significant, with the country enjoy- becoming available for exploration in the near ing licensing round. At the same time, the provides technical assistance. Management ing an 80 percent drilling success rate. Gaspar future, P&P is expected to be heavily involved company feels the pressure to take on as many skills, special studies and R&D, which do not Martins says P&P gained significant skills and in activities covering services such as seismic operating contracts as possible in order to yet exist in P&P, are the main areas of this knowledge through operation of Block 34, acquisition and processing as well as drilling guarantee the country’s overall increase in assistance. regardless of the wells’ results. The firm’s wells. Like any exploration and production production. Gaspar Martins believes that there Gaspar Martins says that given the com- immediate priority now is continued explo- company in the world, P&P is opting to sub- will be some consideration of P&P’s currently plexity of the block, the signing of a ration. After all, Gaspar Martins points out, it contract such services. limited financial resources to bid and cites the co-operation agreement between the two makes far better economic sense to buy The company needs to be prepared to example of Brazil’s Petrobras. companies was a very positive approach. P&P acreage offshore Angola than to buy in refined negotiate, manage and supervise this type of “Before it was decided to open the off- and Hydro combined forces for the entire oil from other countries. contract by developing the skills of its engi- shore blocks of Brazil to international oil development of Block 34, from acquiring the Further exploration is likely to reveal addi- neers and geoscientists on the selection of companies, Petrobras was given preference in acreage, to conducting and interpreting seis- tional oil reserves, and these will both create appropriate parameters for seismic acquisition the best blocks. Later when it built up capacity, mic surveys, to the final development and an export revenue stream for Angola and elim- and for processing and planning. Employees that preference was removed. Although we production phases. inate the costs of importing refined product need to be able to elaborate the most cost have a different historical background, I think While the drilling of two wells in Block 34 from other countries. effective drilling programmes to be followed that is what should happen for the next licens- failed to show the presence of commercial oil Currently P&P is carrying out additional by drilling contractors. ing rounds[with P&P].” The company plans to

16 SONANGOL UNIVERSO SUMMER 2004 17 P&P is positioning itself for a role as a key Cameroon vibrations are converted into a digital signal, Virtual Reality which is then transmitted to another tele- regional producer along the coast of Kiarsseny phone. The 2-D data is recorded and stored on One important way in which Sonangol magnetic tape for processing at a specialised Equatorial West Africa within the next 10 years. Block aims to boost its production is through centre. Guinea increased understanding of the geology on its For the more sophisticated 3-D surveying Northern Gabon doorstep. To this end the company has enlist- system, additional cables must be towed by bid as operator of at least one deepwater block ed geophysical services provider Fugro to the vessel to build up a regular grid of closely as well as for one or two onshore blocks in the conduct a 100,000 km aerial survey of the spaced lines. When processed, both horizontal Kwanza basin. onshore Okavango, Etosha and Kassange and vertical data together create a detailed 3-D Gaspar Martins believes that one sure Graben basins, which will provide detailed image. route towards a boost in production capability information about the area’s characteristics This image is projected onto large screens is acquiring the right manpower. P&P already • Libreville and hydrocarbon potential. using sophisticated simulation software, and has a team that is able to plan and drill a well Data collected will be used by Sonangol to with the aid of special visors, data interpreters without difficulty, from seismic acquisition, to determine areas worthy of exploration and can immerse themselves in the data as if in a plotting the drill locations and depths, and drilling, and also potentially to help attract virtual reality game. determining the probability of success as well more participants to Angola’s upstream oppor- When analysing seismic data, interpreters as producing oil. tunities. need to screen out all extraneous sounds to Teaching its 175 employees the core skills Airborne magnetic surveying has been make it easier to build up the picture of the of petroleum production, however, is not the Gabon used for many years in oil exploration. geological structure and the position, type and sole extent of their education. Sonangol P&P Capable of detecting subtle faulting deep with- size of the reserves it might contain. The has high standards of personal safety and in the earth, it is a fast, low cost method of sounds recorded can be used to determine security, as well as environmental protection. covering large areas. Airborne gravity surveys whether a structure may be oil or gas bearing. The company enjoys an impeccable accident are somewhat newer and can map structures “Bright spots” – or short lengths of sound record and believes that effective management represented by density variations. The regional reflection that are conspicuously stronger than and training are the keys to maintaining this coverage of aero-magnetic and airborne gravi- in adjacent areas – suggest that a formation record. ty surveys can be used to characterise entire may contain gas, as sound velocity is sharply P&P has a well-defined safety protocol, basins, linking together more sparsely distrib- reduced in gas-bearing rock. A gas-oil struc- involving the evaluation and definition of risk uted and more costly seismic data. ture appears as flat reflections, compared with levels and security concerns. The policy tion at home with the Angolan Drilling Despite its high cost, oil exploration com- arched reflections. extends to protection and evacuation plans, Company – is developing the skills necessary panies have relied upon the acquisition and The data is transferred onto detailed maps including coordinated responses to security- for P&P’s future transition into international interpretation of seismic data for years. It pro- that are used to show whether further seismic related incidents. Strict adherence to operations. vides a picture of the geological character of surveying might be appropriate or whether international environmental safety regulations Soon, P&P will take further steps to use its the area, whether onshore or offshore, and drilling an exploration well could be worth- is central to Sonangol’s ambition to become a developing expertise beyond Angola’s borders. helps to pinpoint likely oil and gas reservoirs. while. world-class operator. Gaspar Martins predicts that the firm will ini- Seismic surveys can be either two-dimensional Such advances have been made in the tially favour small equity acquisitions, such as or three-dimensional. seismic field that it is now possible to relay Overseas Operator the Gabon deal, to build up an understanding “2-D is good for reviewing large areas to data direct from the vessel to the processing Sonangol P&P also understands that out- of the overseas oil environment. And after this find prospects and leads, while 3-D is good for centre, vastly reducing the time it takes to side sources, such as partner companies, will period of preparation, P&P will take the next prospect evaluation,” says Steve Butler, sales interpret a structure. help it develop the expertise needed for its step up and venture into cross-border oil pro- manager at TGS Nopec, an international seis- The new “time-lapse”, or so-called “4-D” intended regional expansion and to further duction contracts as an operator. mic contractor. seismic method enables a company to acquire improve its management skills. While Sonangol P&P is not immediately For the simpler and cheaper 2-D survey- data on the same area of a producing field at Collaboration with majors such as Norsk planning aggressive bids to become the sole ing, a vessel tows a cable of several kilometres different intervals, which can be used to detect P&P is focusing its efforts on the Hydro, Chevron and Petrobras, with small oil operator of international offshore concessions, in length, containing hydrophones. A type of changes in pressure or the location of liquid, study of the sub-surface geological companies such as Tullow Oil and Starfish, as it is – step by step – developing offshore airgun sends shockwaves into the water, which and also to evaluate a field’s performance. and geophysical aspects of well as with services industry giants expertise and shaping itself as a viable con- are reflected back to the cable as sound. The As Angola’s rock formations have a high production off Angola’s coast. Schlumberger and Halliburton – not to men- tender in West African oil production. ❖ hydrophones pick up the signals, working in a salt content, which is not easily imaged by 2-D Seismic cross section of the way similar to a telephone in which sound seismic, 3-D techniques are generally required. Kwanza Basin (below).

Offshore Onshore BE-2 BE-5 QN-2 LUAMA PLATFORM PRAIA TROUGH BENFICA UACONGO PLATFORM QUENGUELA TROUGH MULENVOS ZANGO PLATFORM

0 MIOCENE 0 MIOCENE EOCENE EOCENE 1000 EOCENE 1000 EOCENE UPPER CRETACEOUS MIOCENE EOCENE UPPER CRETACEOUS UPPER CRETACEOUS 2000 2000 LOWER CRETACEOUS SALT BINGA EOCENE LOWER CRETACEOUS LOWER CRETACEOUS SALT SALT 3000 CUVO 3000 CUVO CUVO BASEMENT BASEMENT CUVO LIQUEFIED NATURAL GAS Angola LNG, an ambitious venture to capitalise on the country’s high volumes of gas, will bring significant econom- ic, social and environmental benefits to Angola – and make future offshore oilfield developments more attractive. Liquid een traditionally as an oil prospect, will be a key part of the project’s development Angola is poised to enter one of the philosophy.” Sworld’s fastest-growing energy markets: Not all of the gas extracted will be export- liquefied natural gas (LNG). Due to start pro- ed as LNG, although the revenues collected duction in 2009, the LNG project is the through government taxes on Sonangol’s lynchpin of a national gas plan drawn up by share will be important to the Angolan econo- the Angolan government to commercialise the my. Some gas will be used to promote other country’s gas reserves, reduce flaring and help gas-based domestic industries, such as manu- Assets meet domestic energy needs. facturing and the production of fertilisers – “Angola LNG is important for several rea- and the consequential growth in these indus- sons,” says Antonio Órfão, Sonangol’s director tries will itself create new jobs. of concession economics. “Primarily, it will The main environmental benefit of the allow the timely development of oil projects in project will be the dramatic reduction in gas a number of blocks without gas flaring. In flaring, which releases damaging emissions general terms, Angola LNG will mean gas in into the atmosphere. While up to 20 percent Angola is no longer seen as a liability, but as of Angola’s gas production is currently inject- an opportunity and a source of value for the ed into fields to boost oil recovery or used in country.” the processing of LPG (liquefied petroleum To underscore the extent of its impor- gas, a cooking fuel), 80 percent is flared. tance to the nation’s economic recovery, According to World Bank figures, the country Angola LNG was the subject of a 2001 govern- accounts for 30 percent of the gas flared in ment resolution that brought into being a Africa, second only to Nigeria. dedicated inter-ministerial committee. This Some moves towards limiting flaring have was headed by the Ministry of Petroleum and already been made in Angola in recent years. brought together the ministries of finance; The Cabinda Association’s Nemba and Lomba fisheries; industry; agriculture and public fields and the Kuito field in Block 14 are “zero- works to ensure the project’s success. flare”, which means all the associated gas Products will be destined for overseas produced alongside the crude is re-injected markets but the impact of Angola LNG will be into the reservoir to boost oil output. Blocks firmly felt at home too, not least by the local 15, 17 and 18 will become zero-flare when people who will find jobs with the project. Angola LNG begins operations. Early in 2003, the location of the plant was But alongside the benefits, there will be moved from Luanda to Soyo, 300 kms north, certain environmental and social issues that due to the latter’s attractive economic profile arise as the venture progresses – as with and its positive security status following the almost every other greenfield LNG venture end of civil war. being planned around the world. “Local content is an However, the partners are confi- important consideration dent that these will be tackled among all the Angola LNG appropriately and sensitively. partners,” Órfão says. “A typi- “Environmental and socio- cal LNG plant employs economic studies have already several thousand people dur- been implemented, as have pre- ing the construction phase liminary public consultations,” though fewer once it Órfão says. “The local population is becomes operational. being very supportive in having the S I B Training Angolan personnel project in the Soyo area.” R O C

20 SONANGOL UNIVERSO C O R B I The Angola LNG consortium is spear- expected that the Final Investment Decision consultants Poten & Partners show that the S headed by ChevronTexaco with 36.4 percent, [FID] will occur in the fourth quarter of 2005,” global LNG trade reached 111 million tonnes together with Sonangol at 22.8 percent. Órfão says, adding that the project is expected in 2002, a 4 percent increase over the previous Affiliates of ExxonMobil, Total and BP, all hold to deliver its first LNG in early 2009. year. The growth pattern is set to continue, 13.6 percent each. All the partners are leading players in with LNG trade in the Atlantic basin alone The venture was initiated in 1997 when Angola’s upstream oil industry, which has forecast to triple, from 30 million tonnes per Sonangol and the then Texaco assessed the hardly been off the offshore development year in 2002, to 100 million t/yr by 2010. One utilisation of gas flared from blocks south of radar in recent years. With numerous fields of the biggest growth markets is the US, where the Congo River. The study concluded that suf- producing or approaching production, and according to figures from the US National ficient reserves and markets existed, and that with Sonangol preparing to launch a new Petroleum Council, LNG imports are predicted an LNG plant in Angola was feasible. BP, licensing round, the future points to higher oil to grow from the current 2 percent of total ExxonMobil and Total joined the project in production and thus higher associated gas vol- energy demand, to 8 percent by 2010 – and up March 2002. umes. to 15 percent by 2025. Now, after several years of planning and Gas reserves already identified are in Considering its location, Angola is ideally negotiation, the partners are due to move into excess of 10 trillion cubic feet and sufficient to positioned to tap all LNG markets in the the Front End Engineering and Design (FEED) supply the proposed plant. Angola LNG is a Atlantic Basin and the partners are currently in phase and make a significant capital commit- way to exploit the gas produced during off- confidential negotiations with potential buy- ment to the $3-4 billion project. shore operations, making current and future ers. With demand growing all the time, “Assuming a FEED start in June 2004, it is field developments more attractive. potential buyers are now more numerous than The fields that will initially feed the new ever. plant include those in Blocks 15, 17 and 18, “The partners will secure contracts for “There will basically be a high-pressure south of the Congo River, Block 14 to the north LNG prior to the FID,” affirms Órfão, adding of the river and certain fields in Cabinda. that LPG is likely to be sold on a ‘spot’ or gas network from the blocks to shore, Others are likely to be added to the supply short-term contract basis. Confidential discus- with gas compression being located in the portfolio at a later stage, particularly fields in sions relating to the pricing basis of these other blocks operated by the partners in contracts are also under way. LNG Projects require huge invest- respective blocks.” Angola LNG. Of course, the development of Angola ment in infrastructure, such as the El Paso LNG offshore off-loading gas It is expected that around 800–1,000 cubic LNG will not happen in a vacuum. When the facility in the Chesapeake Bay. Antonio Órfão, feet per day of associated and non-associated port of Soyo waves off Angola’s first shipment gas will be collected and transported onshore of export gas, Angola LNG will be competing Sonangol’s director of concession economics. to the new plant via a network of subsea with a number of other LNG export projects pipelines. around the world: no fewer than ten other “Angola LNG is important for several reasons. “There will basically be a high-pressure countries currently have new LNG production gas network from the blocks to shore, with gas plants under consideration. Primarily, it will allow the timely development compression being located in the respective Critics contend that Angola LNG is still in blocks,” says Órfão. “In most cases this will be the early stages of planning and will face tough of oil projects in a number of blocks without • Cabinda at the oil production FPSOs, such as Girassol competition to carve out a share of the market. gas flaring. In general terms, Angola LNG will and Dalia in Block 17, and the Kizomba A and But Órfão is bullish that the project has the B FPSOs in Block 15.” recipe for success, citing numerous advan- mean gas in Angola is no longer seen as a River Congo The plant will initially have one LNG tages that will help the development secure its “train” capable of producing five million niche. liability, but as an opportunity and a tonnes a year and will deliver LPG and other “This project has motivated project spon- • Soyo source of value for the country.” natural gas liquids as well as LNG. The plant sors, partners that are highly experienced in has been designed to account for future the management of large scale projects, and LNG expansion, according to Órfão. very strong support from the Angolan govern- Plant Antonio Órfão Angola “There will be separate and conventional ment,” he says. export systems for LNG, LPG and condensates. With access to inexpensive gas sources The LNG export terminal will be designed to and an attractive regulatory framework, all the handle Moss and membrane type vessels of necessary elements look to be in place. But the the current 145,000 cubic metres capacity, as project also has major symbolic importance. well as larger LNG vessels with capacity of More than anything, it demonstrates that 160,000–180,000 cubic metres that will be used Sonangol is an international company with a in the future.” global vision, moving into an expansionary The market for liquefied natural gas is phase and determined to make full use of the large, and growing. Figures from US energy country’s resources. ❖

22 SONANGOL UNIVERSO SUMMER 2004 23 HUMAN RESOURCES Live Culture Sonangol is committed to making the shift from an organisation in which connections held sway, to one that is tightly defined and performance-based.

t is no exaggeration to say that most the impact of redundancies is acute. Angolans would like to work for Sonangol. Actual numbers are not being bandied IThe company is widely viewed as the pre- around but the company says it is constantly eminent employer in Angola’s highest-profile evaluating staffing levels, and will do so until industry. the necessary staff requirement is determined. But a job with Sonangol is by no means a No action on redundancies will be taken until sinecure with a guaranteed income for life. the appropriate mechanisms are in place and More is being demanded of employees as the have received government approval. company draws up performance-related con- tracts with workers as part of an organisational development project. Home-grown Talent The policy emphasis is on efficiency, and For those working at Sonangol the compa- human resources (HR) is at the heart of the ny inspires a high level of loyalty. The staff company’s new strategic direction – the days turnover in around 7,000 employees is almost of HR being a support operation that just did nil and the hunt for talent starts early. Many of payroll are long gone. the company’s leaders have been hand-picked As Sonangol goes through a transitional at high school level and nurtured through fur- period of culture change and strives to ther training. increase efficiency, it faces some difficult and Sonangol currently has 250 scholars sensitive decisions. Within the broad aim of studying at universities in the U.K., the United

E the company to promote technical ability, it is States and Portugal, before they return to C R U

O necessary to reduce the overall numbers of Angola to work. Training schemes are highly S

N

O support staff. competitive with thousands of applications for I T A R

T HR advises on the impact of particular every place. S U L L

I staff reductions, which must be handled with Furthermore, some of these schemes are

K C

O considerable care. As every employee supports targeted at those with limited financial T S /

G an extended family of around seven people, resources. The successful few sign a contract N I M E L F

E O J SUMMER 2004 25 Profile of Josina Baião Magalhães outlining the required commitment from both nies who come to Angola, Sonangol sees very sides. In the case of the 1990 scholars the con- few employees leaving to join them, despite tract was for 15 years, five for training and 10 the allure of a higher salary. Much of the rea- E N E

of employment. Current HR director Joao son for this is the relative youth of the S passed, and was selected to go to the S A M E

Andre is himself a product of the system, hav- Sonangol board and its line managers. L University of Indiana in the U.S.” Josina L I

E

ing won a university scholarship at the age of “People stay with us because Sonangol is H P explains. As one of a group of 22 scholars, O T S

20, going on to work in HR at headquarters, where the opportunities are in Angola,” says I R she completed an undergraduate degree in H and then Sonangol Distribudora before return- Andre. “All members of our board are young, C economics followed by an MBA, returning to ing to HR once more, where he now dynamic and available. If I wish to, for exam- work at Sonangol in 1999. formulates strategy. ple, I can pick up the phone straight to our “The course gives you the opportunity to “This is an Angolan organisation and so CEO, Manuel Vicente.” go somewhere to learn and there is always we must employ, in the first place, Angolans,” The personnel restructuring that is taking he says. “If we can’t find someone with the rel- place will help Sonangol develop into an even the guarantee of coming back to a secure evant skills, we might take on someone from more attractive company to work for. The job,” she says. overseas for a limited time, with the idea of overall ratio of support staff to technical staff Sonangol paid for her tuition, course replacing them with an Angolan as soon as will be reduced over coming years, at the same books and part of her medical insurance – possible.” time as the hiring of new technical staff accel- and also gave her a leave of absence to com- Some of those employed will already be in erates. This should propel Sonangol to a plete her graduate studies. the oil industry, but Sonangol’s student train- position where it is able to keep many of the Although Josina comes from an educat- ing schemes play a key part in finding and technical functions of hydrocarbon develop- ed family – her father is a lawyer and her developing new recruits. ment in-house. mother is an economist – she considers that “We don’t necessarily set our own exams,” Those joining the company, as well as her participation in the Sonangol scheme has Andre explains. “What we do is look for poten- those already working for it, will find them- enabled her to make a significant additional tial, apply the normal psychometrics – and selves in a much more dynamic environment, contribution to the company. hopefully we get the best.” Andre points out where performance is paramount. The organi- that the identification of students most suited sational development (OD) process is a “I feel I have been given a big oppor- for the courses is usually initiated by the question of fine balance though, and while tunity and objectives. I recognise that not schools they attend. Sonangol is anxious to leave cronyism behind, many young Angolans have the opportunity “The school identifies potential candi- it wants to retain the sense of “family” that to know the industry the way I do and to dates on the basis of resources available and keeps the company at the top of prospective understand things, particularly the strategic individuals can then apply. If they have good employees’ wish-lists. importance of oil.” enough grades, they are eligible. If someone is “In Africa much of the culture is based on Now that she is working in a managerial bright but has no resources it makes sense to who you know but we’re trying to move away position in the concession economics divi- help them.” from that because it sometimes compromises sion, Josina says she has already been able to “I feel I have been From informal beginnings, the scheme performance,” says Andre. “It’s going to take a share some of what she has learned, after her has developed into something far more com- while to change.” given a big In Good manager assigned a new employee to work- prehensive, which is beneficial to students and The OD project means that while people Sonangol alike. Last year Sonangol signed will still recognise faces in the corridors, every shadow her for 18 months last year. opportunity and agreements with a series of schools in Luanda employee will have a better-defined personal “The new staff member was following Company me and understanding my work,” she says. objectives. I recognise and various universities; the Catholic contract in which their role and the company’s University, has been given an allocation of expectations are clearly set out. The aim is to “Now I am a manager and this person is that not many young scholarships every year for the next three keep the top management and the rest of the By creating a hothouse atmosphere of happy doing the things I was doing in the years. organisation better aligned in terms of actually talent and ideas, Sonangol aims to make best department.” Angolans have the Around 80 percent of the scholars that delivering results. use of its gifted people – and the company Josina says that part of her newfound Sonangol sends overseas return to Angola to “We need to translate the board’s vision so scholarship schemes are designed to help confidence is a result of the teambuilding opportunity to know work for the company – an impressively high we are all speaking the same language and can recruit the staff it needs to attain higher tech- exercises that were common practice during number given the higher standard of living become more integrated, and as a result, more nical capability and improve efficiency. the industry the her studies. She is surrounded by a large and wider opportunities available in the U.S. respected here and abroad,” Andre says. One scholar who is already passing on number of Sonangol scholars who have all way I do and to and U.K. and elsewhere in Europe. Turning the vision into reality is a step-by- her knowledge to fellow employees is Josina come back to Angola to work at Sonangol, Aside from the desire to return to friends step strategy involving every thread of Baião Magalhães, who like Sonangol itself is understand things, and families, those who take up their position Sonangol. For the 34-year old Andre, his role in 28 years old. After finishing high school in which has created a real sense of belonging in the company are attracted by a high salary HR is very different to how it would have been Luanda, Josina attended the first year of uni- and common purpose. particularly the by Angolan standards, plus a comprehensive ten, or even five, years ago and he says, even if versity in Portugal before Sonangol selected “You feel a level of understanding and a benefits package. While enjoying a system of at his young age the grey hairs are appearing, her to participate in one of the schemes. type of connection with each other,” she strategic importance secondment to the international oil compa- it is worth it. ❖ “I was invited to take a test, which I enthuses. “This is good for the company.” of oil.”

26 SONANGOL UNIVERSO SUMMER 2004 27 HEALTH & SAFETY Safe Conduct Sonangol has never had a serious accident or oil spill and the company wants to keep it that way, with a major invest- ment programme to ensure standards across departments.

he international media is quick to spot- tuning company policy, setting up a QHSE light any oil industry disaster, be it a management system and then creating an Tpipeline explosion, oil spill, helicopter organisation to put that system in place,” crash or even a minor mishap. Names such as explains Valente da Silva, Sonangol’s head of Piper Alpha and Exxon Valdez underline the QHSE. ultra-high visibility in which the oil sector “During the war, our principal aim was to operates – as well as the high cost of acci- maintain production and meet government dents. basic requirements on a daily basis. As we Angola has suffered a handful of oil spills moved towards peace, the company started to in the recent past, in addition to isolated war- reorganise itself so this is now our vision.” related onshore incidents – although none of Following the formation of a team to these have been attributable to Sonangol. spearhead the introduction of the QHSE pro- The company sets high store by its gramme, the Norway-based risk management record, and this year has allocated more then consultancy, Det Norske Veritas (DNV), was $2 million to be spent on implementing a approached. The Sonangol team felt that with QHSE (Quality, Health, Safety and its extensive experience in Brazil, a Environment) management system across its Portuguese-speaking country with numerous operations. This will cover production units cultural similarities to Angola, DNV would and exploration sites as well as areas such as have both the capacity to understand their transportation and distribution, with an culture and then to help change some of the intensive, dedicated training programme behaviour associated with risk awareness, involving more than 2,000 employees. which is always directly linked to human The programme will raise the company’s behaviour. current standards still further to ensure safe, “Members of the team were drawn from clean and environmentally friendly working all our subsidiaries,” continues da Silva. “The

procedures for its employees and for Angola objective was first to define the whole QHSE E N E S S

as a whole. policy to be put in place, which we did. The A M E L L

“In 2002, the Sonangol board decided to policy was approved, signed and published in I

E H launch the QHSE project with the aim of fine- 2002.” P O T S I R H C

28 SONANGOL UNIVERSO