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SONANGOL UNIVERSO

UISSUE 49 | APRILn 2016 iverso www.universo-magazine.com

40 Years of Success

UPSTREAM CULTURE SOCIAL ACTION ISSUE 49 – REVITALISING ’S CHEVRON’S

APRIL 2016 OILFIELDS ARTS FESTIVAL CSR EXPERIENCE

Board president Francisco de Lemos José Maria at the anniversary event CONTENTS Universo is the international magazine of Sonangol President Francisco de Lemos José Maria Endiama Executive administrators: Anabela Soares de Brito da Fonseca, 4 3 NEWS BRIEFING Ana Joaquina Van-Dúnem Alves da Costa, Fernandes Gaspar Bernardo Mateus, Fernando Joaquim Roberto, A roundup of national and international news concerning Mateus Sebastião Francisco Neto, Sonangol and Paulino Fernando Carvalho Jerónimo Non-executive administrators: Albina Assis Africano, José Gime, 4 André Lelo, José Paiva 10 3 PUMPING IS UP Sonangol Department for

Communication & Image Director Angola output reaches 1.78 million bopd José Quarenta Mateus Cristóvão Benza SONANGOL: Shutterstock Corporate Communications Assistants Nadiejda Santos, Paula Almeida, FOUR DYNAMIC DECADES Hélder Sirgado, Kimesso Kissoka 12 3 SONANGOL RETROSPECTIVE

 Publisher: Sheila O’Callaghan he fortunes of Angola and Sonangol have been intimately Looking back on four decades of success 12 Editor: John Kolodziejski entwined over the past 40 years. Since its foundation on Managing Editor: Mauro Perillo February 25, 1976, the company has been the mainstay of

T Shutterstock Art Director: Tony Hill the country’s economy. The oil industry that Sonangol leads so 22 3 WEATHERFORD WATCHING Sub Editor: Brian MacReamoinn dynamically has accounted for more than 90 per cent of export Profile of a leading oil services company Proofreading: Gail Nelson-Bonebrake earnings during the past four decades. Circulation & Production Manager: Matthew Alexander In the words of board president Francisco de Lemos José Maria, Production Assistant: Sebnem Brown the founding of the company marked the beginning of the battle for Project Consultant: Nathalie MacCarthy Angola’s economic independence. 28 3 IN SEARCH OF FOREIGN FIELDS Group President: John Charles Gasser 22 The income that oil sales brought into government coffers Sonangol Hidrocarbonetos Internacional’s (SHI) aims

provided the means for the newly-independent nation to maintain Chevron and objectives its hard-won status and ultimately to achieve peace in April 2002.

Universo is produced by Impact Media Custom Publishing. Since then Angola has witnessed a massive expansion in The views expressed in the publication are not necessarily development as Sonangol has accelerated its oil output, benefiting those of Sonangol or the publishers. Reproduction in whole 34 3 CHEVRON CARES: CSR IN ANGOLA or in part without prior permission is prohibited. from high crude oil prices on the global market. This has transformed the lives of many Angolans, who now have greater Chevron’s shining example This magazine is distributed to a closed circulation. access to healthcare, housing, schools, energy and water supplies, To receive a free copy: 34 [email protected]

as well as rebuilt highways, and improved rail and air links. Circulation: 15,000 A successful oil industry, under the guiding hand of Sonangol, 40 3 REVITALISING ANGOLA’S MATURE FIELDS

Davenport House, 16 Pepper Street, E14 9RP laid the firm foundations of the country’s economy. The legacy of the Eco Tur Angola company’s first four dynamic decades is a healthier, better educated Strategies for enhancing production Tel + 44 20 7510 9595 | Fax +44 20 7510 9596 [email protected] Angola, enjoying all the benefits of new and improved infrastructure. www.universo-magazine.com

www.sonangol.co.ao [email protected] John Kolodziejski 44 3 ANGOLAN ART COMES HOME Front cover: José Quarenta 44 Editor Luanda’s Triennial triumph Universo is printed on FSC approved stock.

2 SONANGOL UNIVERSO SONANGOL UNIVERSO 3

NEWS BRIEFING NEWS BRIEFING

WELL DONE Laying flexible cables PRESIDENT OPENS LUANDA INTERCHANGE Adding renewable energy 3 President José Eduardo dos Santos inaugurated a totally rebuilt road 3 Italian major Eni started oil production in Angola’s Mpungi field on interchange in central Luanda as part of the February 4, Day of the Armed Struggle, time and within budget in January. The West Hub project in deepwater celebrations. The Largo do Ambiente road complex project, whose development block 15/06 in Angola is located 130km west of and is expected has benefited from the support of Sonangol, is located near the city’s waterfront to add around 100,000 barrels per day in the first quarter of this year. and consists of two large roundabouts that have long been a traffic bottleneck. The The West Hub consists of the Sangos, Cinguvu, Mpungi, Mpungi rebuilt roundabouts now boast pedestrian areas and a large square. There is also North, Ochigufu and Vandumbu fields at depths of between 1,000 underground parking for 525 vehicles. Parked cars in the area had previously been and 1,500 metres. The wells are connected to the N’Goma floating a source of congestion. The project, close to the historic Nazareth church, is part of storage production and offloading (FPSO) ship. Luanda’s ongoing renovation and is intended to provide local residents and visitors Eni said it would continue to carry out exploration activities with an improved urban environment, while accelerating traffic flows. in block 15/06, and would link any new discoveries to existing production facilities. Shutterstock The group is the block’s operator with a 36.84 per cent stake, and The country’s biggest diamond

the remaining partners are Sonangol P&P (36.84 per cent) and SSI Fifteen Ltd (26.32 per cent). Lomaum dam

Eni Angola Sparkling discovery Endiama powers up again

3 The Lomaum power dam at Sonangol cleans up electronic waste in province reopened on February 4 after standing still for over 3 Sonangol led a campaign to recycle electronic waste 30 years. The 50MW dam, built in 1959, to mark Environment Day on January 31. In partnership will improve power supplies to over Emanuel Jardim with the Ministry of the Environment and private company 92,000 people in Benguela, , NetService, Sonangol managed to collect 500 tonnes of and Baía Farta. electronic materials over a period of six days. Currently Lomaum, which had restarted Angola’s electronic waste is exported. commercial production on an Daniela Matos, Sonangol’s director for quality, safety experimental basis in June 2015, is and the environment, said the initiative was part of the located on the River Catumbela, about company’s contribution to a healthier environment. 200km southeast of Benguela. The The campaign involved Sonangol personnel collecting 3 Australian firm Diamond Company has unearthed a 404.2-carat dam had been inoperative since 1984. waste from the Samba and Ilha areas of Luanda. diamond, measuring more than 7cm in length and valued at some $14 million, Recovery and modernisation were

the largest ever found in Angola. carried out in 2009 by the Guangxi

The precious stone was recovered from Block 8 at Lulo, which has Hydroelectric Construction Bureau Interior minister Ângelo Tavares (centre) and already produced more than 60 such large gems since mining began in the Angola, in partnership with Kanazuro environment minister Maria de Fátima Jardim area in August 2015, the company said. The previous largest discovery was Electric, who will now operate the dam with Daniela Matos, Sonangol’s director of DQSE (extreme right) approximately half the size of the current one at 217.4 carats. Lulo, in northeast for 20 years. The project also utilised Angola, forms part of Catoca, the world’s fourth biggest diamond mine. 145km of transmission lines. Angola’s national diamond company, Endiama, said it was “a significant day

Shutterstock for our country, for our industry and for the Lulo project.” Endiama sold diamonds worth $1.1 billion in 2015, and its board chairman, António Sumbula, predicted output should double in the next three years from

its current level of 8.8 million carats per year.

4 SONANGOL UNIVERSO SONANGOL UNIVERSO 5 Shutterstock

Emanuel Jardim NEWS BRIEFING NEWS BRIEFING

Angolan independence feted in words and music

José Quarenta

New school for Sambizanga

Sonangol funds new Luanda school Sonangol and Eni sign deal 3 Sonangol E.P. and its Block 17 partners, led by Total E&P Angola, opened 3 A literary anthology entitled Angola 40 Years: 40 Tales, 40 a new secondary school in Luanda’s Sambizanga district in February. The Authors and a music compilation CD Angola 40 Years, produced and Angola’s first school was named Kidielela Kwa Muenho. 3 The strategic and operational partnership sponsored by Sonangol, were released on February 18 in a ceremony The new buildings were built from Block 17 funds and consist of between Sonangol and Eni was enhanced at the Angolan Writers Union (UEA), in Luanda. steel mill 13 classrooms, a refectory, a laboratory, a library, swimming pools and in December with the signing of a The UEA’s general secretary, António Carmo Neto, presided over sports grounds. co-operation agreement to develop the the ceremony. 3 Economy minister Abraão Gourgel inaugurated Witnesses at the ceremony included Sonangol E.P. executive Angolan oil industry by the Chairman of The 380-page book and the CD pay homage to the 40th the country’s first ever steel complex, Aceria de administrators Anabela Fonseca and Ana Joaquina Costa, and the director the Sonangol Board, Francisco de Lemos anniversary of Angola’s independence. The volume includes stories Angola, on January 16. The 500,000 tonnes/year general of Total E&P, Jacques Azibert. Also in attendance was Sonangol’s José Maria, and by his Eni counterpart, by distinguished Angolan authors such as Adriano Mixinge, Albino plant at Barra do , , will director for corporate social responsibility, Arlete Borges. Claudio Descalzi. Carlos, Aníbal Simões, António Fonseca, António Gonçalves, António help reduce the country’s imports of steel rods, A major component of the agreement Quino, António Setas, Arnaldo Santos, Augusto Alfredo, Carmo said minister Gourgel. Initial daily output will be involves upgrading the existing Luanda Neto, Chicoadão, Conceição Luís Cristóvão, Dario de Melo, David 1,000 tonnes of 8–32mm rods used in building Recent government appointments refinery and developing a new one Capelenguela, Domingos de Barros Neto and Roderick Nehone, construction. Currently Angola imports around at Lobito. among others. 300,000 tonnes of steel annually. The partnership also includes The disc features protest songs from the period of independence Angola’s First Lady, Ana Paula dos Santos,

3 President José Eduardo dos Santos named four new ministers in March assessing gas resources in the Congo which are now evoked by other Angolan voices. was also present at the opening ceremony as while also accepting the resignation of the governor of Angola’s Central Basin, which could result in energy well as the governor of Bengo province, João

Bank, BNA, José Pedro de Morais Júnior. The president named Valter Filipe generation of up to 1.5GW for the Artists honour Angola’s freedom Bernardo Miranda. Duarte da Silva as his replacement. domestic market, supporting agricultural Banco de Poupança e Crédito (BPC) provided José Quarenta Carolina Cerqueira replaces Rosa Maria Martins da Cruz e Silva as projects with the aim of diversifying $130 million of the total $260 million investment. culture minister. Fiel Domingos Constantino takes over at the trade ministry Angola’s economy. The project was initially budgeted at $300 from Rosa Escórcio Pacavira de Matos. Paulino Domingos Baptista becomes million. Next year the mill will manufacture wire hotel and tourism minister, and Luis Gomes Sambo becomes health minister rod and mesh. in place of José Vieira Dias Van-Dúnem. Branca Manuel da Costa Neto do The plant will absorb large amounts of Espirito Santo is the new minister for housing and urban planning. locally-sourced scrap metal and will receive power from the dam.

6 SONANGOL UNIVERSO SONANGOL UNIVERSO 7 NEWS BRIEFING NEWS BRIEFING Kostadin Luchansky

KAZA project

tackles poachers Angoflex pipes 3 The ministers for hotels and tourism of for Kaombo Botswana, Namibia, Zambia, Zimbabwe and the Angolan Secretary of State for the sector, Alfredo Varo Kaputo, have approved the master plan for the 3 Angoflex Industrial has begun welding rigid

integrated development of the Kavango-Zambezi pipelines for the Total-led Kaombo project in Transfrontier Conservation Area (KAZA–TFCA). The Block 32. It is undertaking the work at its Barra

KAZA–TFCA project aims to protect biodiversity, Total’s Luanda HQ do Dande base in Bengo province. promote tourism and improve the living conditions According to Angoflex director Isabel Paulo of communities. Nascimento, the plant will produce nine 13,500- Angola’s share of the area covers 90,000 sq km Totally pumped up metre pipelines with a total length of 280km, in . which will be deployed in six fields at depths of The KAZA–TFCA authorities expressed 3 France’s Total took the first step towards opening fuel stations up to 1,925 metres.

concern about the sharp increase in poaching in Shutterstock in Angola when its CEO Patrick Pouyanné signed a memorandum of Work on the project is scheduled to last a the conservation area, with particular emphasis understanding in late December. Initially Total will source products year and will involve a workforce which is 90 on the slaughter of elephants. “These crimes through Sonangol. per cent Angolan. against animals already have transnational aspects Sonangol said the deal could involve investments of hundreds of Angoflex is co-owned by Sonangol (30 per including the involvement of criminal organisations New Sonangol concessions millions of dollars, with both immediate and long-term benefits. This cent) and (70 per cent). from other continents.” The ministers intend to partnership embodies the government’s strategy to liberalise trade organise a broader forum to engage the defence in the sector, the company added. and security forces of member countries to combat 3 The government has awarded Sonangol operator rights to the poachers. explore and develop oil and gas in an area covering 540 sq km, off Angola’s coast. The concessions include Block 2/15 (Garoupa Oeste well), Block 6/15 (Cegonha well) and Block 18/15. FIGURED OUT ANGOLA IN NUMBERS

On the road to Soyo Shutterstock 223.6 million $260

3 Work on the key northern coastal highway from Nzeto in barrels million Bengo province to the important oil and gas town of Soyo Angola crude oil cost of country’s 1.78 exports last year first steel mill in resumed in February after several years of delays. Chinese construction firm Sinohidro, which is million undertaking the project, says completion of the 96km barrels highway is due by June 2017. China has provided a credit line to finance the project’s completion. 960MW 600,000 Angola’s daily Nzeto is already connected to Luanda and recently crude output last year planned raised capacity of foreign visitors expected had its road link to the provincial capital revamped. Cambambe Dam this year in country in 2016

8 SONANGOL UNIVERSO SONANGOL UNIVERSO 9 Malocha Malocha PERFORMANCE PERFORMANCE PUMPING IS UP

nnual company results released on February 25 by (AKZ) last year, one-third down on the also impacted by currency rates as the the fall in value of their oil and natural Malocha Sonangol (in its 40th anniversary year) showed that preceding period. The reduction in oil kwanza depreciated and was devalued. gas assets. Their losses were estimated A crude oil production rose by 6 per cent in 2015 to takings was partially compensated Sonangol’s net debt increased at more than $3 billion. a daily average of 1.78 million barrels. The rise was mainly for by an increase in income from 41 per cent to AKZ1,239 billion as the due to increased output in new fields: Block 14 (Lianzi), refining, distribution and fuel sales. company maintained its intensive Prospects Block 15 (Kizomba Satellites Phase 2) and in Block 17 (MPP Angolan fuel retail price rises in investment plans. Despite believing 2016 will be a very Rosa and Dália 1A). This was also supported by consistent January and April last year also Despite adverse oil market difficult year for the company with a performances from Blocks 17, 18 and 31. boosted Sonangol’s revenues. conditions, Sonangol E.P. met all its substantial reduction in the trading conditions were increasingly difficult last However, company earnings financial creditor commitments and crude, Sonangol expects to raise its year as prices plummeted. Sonangol exported 223.6 million before interest, tax, depreciation and continued its investment programmes oil output. It also envisages its results barrels of crude at an average price of $50 per barrel, amortisation (EBITDA) declined 45 per while making some necessary and financial performance will remain compared to $96.72 in 2014. Oil exports were sharply down, cent to AKZ1,247 billion, while the net adjustments. It spent a total of AKZ565.2 under strong pressure. bringing in $11.2 billion, half that of the previous year. figure fell from AKZ139.2 billion in 2014 billion with 82.1 per cent going to Company initiatives taken in 2015 to Exports were also affected by lower demand as volumes to AKZ44.1 billion in 2015. exploration and production, 7.6 per cent reduce costs will be enhanced this year Malocha declined 12 per cent. The main factors affecting covering logistics and distribution, 5.1 with the revision of some investment There was better news concerning the production, Sonangol’s net profits in 2015 were a per cent on refining and transport, and projects and the possible option of import and consumption of oil products. Sonangol’s Sonaref fall in crude prices and impairments to 4.8 per cent for non-core businesses. disposing of non-core assets and Luanda refinery produced 2,491,515 tonnes of refined oil oil production assets such as dry wells The business performances of businesses. This may allow Sonangol products in 2015, up 15 per cent compared to 2014. However, and/or non-commercial discoveries. On subsidiaries Sonangol P&P and Sonagás to maintain the conditions for balanced this amount was insufficient to meet domestic demand of the plus side, Angola’s retail prices rose were those most affected in 2015 by finances and give it the margin needed 4,864,958 tonnes, which was 11 per cent lower than in 2014. and operational costs fell. Profits were lower crude and prices and to continue investing. To satisfy the country’s needs, oil product imports reached 5,040,021 tonnes, a 5 per cent fall compared to the previous year. The decline in consumption was mainly a consequence of higher domestic fuel prices as the state reduced consumer subsidies. Despite adverse oil market conditions, Sonangol E.P. met all its Meanwhile, Angola’s natural gas production dropped 8 financial creditor commitments and continued its investment per cent to 507,293 tonnes in a year when the LNG plant at Soyo continued to be out of service. programmes while making some necessary adjustments Sonangol’s receipts totalled 2,297 billion kwanzas

10 SONANGOL UNIVERSO SONANGOL UNIVERSO 11 onangol celebrated its fortieth anniversary on February 25. Over the past four decades the SAngolan state-owned oil company has become a world-class outfit, and is highly respected by its peers and business partners. It is by far the largest and most influential enterprise in Angola’s economy.

Oil output Under Sonangol’s stewardship, Angola’s oil and gas output has come on in leaps and bounds, especially over the past 20 years, as operations have moved José Quarenta further offshore to exploit the nation’s rich deepwater hydrocarbon assets. Sonangol is the sole concessionaire charged with exploiting oil and gas in Angola’s subsoil and continental platform. It is a fully integrated company which manages all fuel production and distribution in the country. Core business activities include prospecting, research, development, marketing, production, transportation, storage and refining. These tasks are undertaken alone or in collaboration with Emanuel Jardim foreign firms. Its partners in oil drilling include most of Above: Sonangol E.P.’s women’s basketball team the top international oil names. Below: Sónia Anastácio, best indoor soccer player with Pedro Gomes, director of the Centro Below: Gianni Martins, presented Cultural Paz Flor Sonangol’s board with chairman Francisco de Lemos José Maria (centre) with best basketball scorer trophy Emanuel Jardim SONANGOL José Quarenta José Quarenta RETROSPECTIVE Universo looks back over 40 years and describes Taking aim how a fledgling oil firm has blossomed into one of the leading energy powerhouses in today

12 SONANGOL UNIVERSO SONANGOL UNIVERSO 13 Emanuel Jardim Emanuel Jardim Emanuel Jardim Emanuel Jardim

INTERNATIONAL OPERATIONS Sonangol has expanded its core business into other activities and today is a multinational company. The headquarters are in Luanda and the company has offices worldwide.

AFRICA SOUTH NORTH ASIA EUROPE One big happy family. Board chairman Francisco de Lemos José Maria Roberto of the Girassol team receives the top AMERICA AMERICA (striped shirt) in its midst goal-scorer trophy from Mateus Cristóvão Benza, head of Sonangol Department for Cape Verde United States Communication and Image retail sales of refined oil exploration, production, marketing crude oil marketing refining, distribution development and and shipping of crude and retail of refined Since its founding in 1976, sized producer. Offshore Angola is produced in Angola and is used as an São Tomé and production of crude oil oil and LNG oil products Sonangol has helped Angola to recognised as a world-class area international reference. Príncipe crude oil marketing become the second largest oil producer for oil exploration and production, The US market has a preference for distribution and retail Venezuela UK in sub-Saharan Africa, with a high making it a major deepwater player light crude, which is appropriate for of refined products of exploration, crude oil marketing probability of reaching the top spot in alongside Nigeria, Brazil and the Gulf , and therefore favours Nemba crude oil development and the next few years. of Mexico. and Palanca streams, while crude from production of crude oil By 1984, Angola was tapping Today, these deep-sea wells account Kuito wells is dense, and most of it is 100,000 bpd (barrels per day) and this for more than 80 per cent of the total oil sold to Middle East countries. amount more than tripled by 1991. In output of nearly 1.8 million bpd. Most Blend is appropriate for ANGOLA PRODUCTION HISTORY AND FORECAST 2004 Angola was producing 1 million of the crude oil is produced offshore in fuel oil and large quantities of this are bpd as drilling moved into deep waters. Block 0, located near Cabinda. Crude sold to China, Angola’s main client. Angola’s output was around reserves are also present onshore THOUSANDS REAL FORECAST BARRELS 2013: 2015: 700,000 bpd in 1996, when Sonangol around the city of Soyo, offshore in the The shape of Sonangol today PER DAY 1,715,561 2,000,000 partner Elf (now Total) Kwanza Basin north of Luanda and off Employing over 9,000 people, Sonangol 2,250,000 BPD BPD discovered the giant Girassol field the northern coast. is the driving force in the exploration 2,000,000 in Block 17 at a water depth of 1,300 Angola gained recognition of its of the country’s oil and gas resources metres some 140km offshore. This importance as an oil producer in and now looks far beyond its own 1,750,000 discovery midway between Cabinda January 2007 when it became the frontiers in expanding its operations. 1,500,000 and Luanda surprised the oil industry 12th member of the Organization of Over the past four decades, the 1,250,000

because of its long distance from the Petroleum Exporting Countries (OPEC). state-owned company has expanded 1,000,000 coast, indicating that oil deposits were into a group of integrated companies, 750,000 spread further afield than previously Crude products comprising 17 subsidiaries which 500,000 thought. Other Sonangol partners – Angola currently produces 13 oil provide a wide range of services to 250,000 Total, Chevron, Esso, BP and Maersk streams or grades with various support and promote its upstream and Oil – also made further finds in similar characteristics such as viscosity, downstream activities. In this process, 0 2020 geological formations. acidity and sulphur content, and thus Sonangol has become Angola’s leading 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Thanks to deep-sea wells, growth appropriate for different refining distributor of refined products as well YEARS in production has doubled since processes and uses. Cabinda Blend is as a promoter of social and national 2002, making the state a medium- the standard type for evaluating crude human resources.

14 SONANGOL UNIVERSO SONANGOL UNIVERSO 15 José Quarenta

Through its acquired experience, All international oil company support services. A greater share of fibre optic cables and specialist paints, hard work and sustained development, partners are obliged to train local staff further education and vocational while others fulfil other key elements for the group has gained prestige and built through the country’s Angolanisation training related to the oil industry is the country’s industrial renaissance such a solid reputation in the oil industry policy, which aims to have native also now undertaken at home where as electronic, telecommunications and both at home and abroad. This is workers make up at least 85 per Sonangol’s Academia subsidiary has a irrigation equipment, packaging as well as a direct result of the high-quality cent of personnel at all levels. These leading role. construction materials. relationships it has developed with the companies must also use their The availability of Angolan In addition, Sonangol, through its oil companies which operate or have organisational know-how to promote universities and training centres, such Sonip subsidiary, has had a huge impact interests and investments in Angola. economic, social and educational as the oil industry-focussed marine on the building of large-scale housing projects through corporate social training centre at , means fewer developments throughout Angola. The Sonangol’s part in Angola’s progress responsibility budgets, often as a locals need to study abroad. jewels in the crown are the now thriving While Sonangol’s priorities are condition for Sonangol-managed oil A result of all these initiatives Kilamba Kiaxi and Zango districts of Luanda Races celebrate the management of hydrocarbons, exploration concessions. has been more widespread economic that are home to some 200,000 people. environmental protection and Local content laws have also activity across the country, especially The group is justly proud of its Sonangol’s 40th birthday industrial safety, the company also meant that more oil-related activities along its seaboard: Cabinda, Soyo, environmental record and has set a high performs a broader role in Angola’s are undertaken in Angola using local , , Sumbe standard for others to emulate. Remarkably, Long-distance runner Simão Manuel, of economic and social development. workers and manufacturing plants. and Lobito. since commercial oil production began in athletics club Clube Desportivo 1º de Agosto, won the 15km Luanda road race celebrating José Quarenta The oil industry it leads provides In recent years, Sonangol’s Through its fuel distribution wing, 1956, there has never been a major accident Sonangol’s 40th anniversary. Manuel led a field most of the country’s income and oil concessions have sourced Sonangol Distribuidora, the company or oil spill in Angola, a state of affairs of 3,500 runners, which included top athletes, underwrites ambitious infrastructure sophisticated equipment such as has ensured its presence is felt in every Sonangol is determined to maintain. veterans and the general public. His time of 47 projects such as new power dams, topside units for rigs and umbilicals corner of the country, with over 600 Sonangol also has a strong commitment minutes and 56 seconds was enough to gain the highways and railways as well as in-country. Angolan suppliers have service stations providing petrol, diesel to the preservation of natural resources in 200,000-kwanza prize. water supply, education and enormous increasingly provided , and in many cases, convenience stores. the areas where it operates. The race began at Sonangol’s headquarters housing schemes. maintenance and other oil industry The aviation arm of the company, A major Sonangol-backed undertaking and passed by the port area, before doing a long SonAir, also provides regular flights with great environmental benefits is the loop along the Ilha peninsula, which encloses Luanda Bay. Administrators Anabela Fonseca and Ana Joaquina da Costa help board across the country. $10 billion, 5.2 million tonnes per year Ernestina Paulino of Interclube won the chairman Francisco de Lemos José Maria cut Sonangol’s birthday cake LNG (liquefied natural gas) plant at Soyo, women’s prize with a time of 55 minutes and A wide-angle view inaugurated in 2012. The project not only 46 seconds. In order to reduce vulnerability aids sustainable development by ending the A 5km fun race was also organised for

José Quarenta to fluctuations in the oil market, wastage of a precious resource, but also cuts families. One participant was 73-year-old Ernesto Sonangol has sought to diversify its Angola’s carbon emissions. Bastos who said he was happy to have managed activities and has taken on a leading to pass the finishing line when many did not. role in other areas of the economy, Looking ahead akin to that of a development By every quality measure, Sonangol has agency. The company has used progressed since its creation in 1976. It José Quarenta its administrative skills to bolster has expanded to meet the demands of its embryonic enterprises. A good clients for more fuel at home and abroad, example of this aspect has been while its revenues have benefited Angola SIIND, a branch which at one time by financing the total renewal of the operated as an incubator for new country’s infrastructure. industrial developments. Some of The company has been the moving force the industries it supported are linked behind the nation’s extraordinary economic to ancillary oil services and the growth in recent years and will continue to manufacture of drilling equipment, play that role in the future.

16 SONANGOL UNIVERSO SONANGOL UNIVERSO 17 Malocha José Quarenta Sonangol archive

Aiding Angola’s economic SONANGOL E.P. SUBSIDIARIES independence

CORPORATE & FINANCIAL REFINING & TRANSPORTATION NON-NUCLEAR BUSINESS Sonangol Finance Ltd Sonangol Shipping SonAir The board president of Sonangol The high point of the event was the financial services crude oil and oil and gas industry E.P., Francisco de Lemos José presentation of diplomas of merit LNG maritime transport air transport service Maria, said the founding of and special gifts to workers who EXPLORATION & PRODUCTION the company in 1976, marked have completed 40 years’ service

Sonangol P&P Sonaref MSTelcom the beginning of the battle for with the company in 2016.

Angola’s economic independence. Administrator Fernando oil exploration refining telecommunications Francisco de Lemos José Maria admires the He was speaking during the main Roberto, in his role as activities basketball trophy event commemorating Sonangol’s co-ordinator of anniversary Sonangol Hidrocarbonetos DISTRIBUTION Sonangol Holdings 40th anniversary. commemorative events, stressed Internacional Sonangol Logística investments He emphasised the fact that the importance of the date (the oil and gas operations abroad logistics over four long decades it has been company being founded on Sonangol Investimentos possible to build and preserve an February 25, 1976) and described The current battle is Sonangol Gás Natural (Sonagás) Industriais (Siind) Sonangol Distribuidora impressive oil company. He also the activities that marked natural gas exploration industrial investment oil products distribution said that the current battle is for the occasion. for the consolidation the consolidation of the company’s The event celebrated the Empresa de Serviços e Sonangol Comercialização Sonangol Imobiliária e many victories for the good of the publication of two books: Sonangol of the company’s many Sondagens de Angola (Essa) Propriedades (Sonip) Internacional (Sonaci) sector and of the country. 40 years, a work that narrates construction, operation and oil, gas and product marketing property development maintenance of onshore and According to the president, in the first person the tales of victories for the good offshore drilling rigs as well notwithstanding the current indispensable figures in the as survey services Clínica Girassol difficult and complex situation, it company’s history, and Origins, of the sector and of the healthcare was still possible to be profitable which portrays the preservation of in 2015, despite their falling traditional characteristics of some country Academia Sonangol compared with 2014. Angolan ethnicities. training The official Sonangol 40th The board president awarded – Francisco de Lemos José Maria anniversary ceremony took place the general culture prize to Elma in the presence of administrators, João. He also presented the Sonangol board president members of executive national basketball champions’ Sonangol archive Sonangol archive Sonangol archive commissions and corporate trophy and the Africa Clubs directors at the company’s head Champions Cup for 2015 to Petro office in Luanda on February 25. Atlético de Luanda.

18 SONANGOL UNIVERSO SONANGOL UNIVERSO 19 Elf in Angola in September 1987 Sonangol’s current headquarters

Kostadin Luchansky dwarfing its original offices (right) Getty Images Getty Images

2001 Girassol production begins at a rate of 2011 Total and partners achieve 1 200,000 bpd billion barrels cumulative oil from deepwater Block 17

Sonangol awards 11 pre-salt blocks Sonangol P&P starts operations in Block 03 2003 in deepwater Kwanza Basin

Angola oil output reaches 1 million bpd 2004 2012 Maersk Oil makes first deep- water pre-salt oil discovery in Kwanza Basin SONANGOL’S 2007 Chevron Block 0 begins production Cobalt also makes pre-salt find

Chevron, Sonangol and partners 2008 Angola oil production averages accumulate 4 billion barrels of oil 1.9 million bpd output in Block 0 TIMELINE Sonangol opens new HQ in Luanda

1976 Nationalisation of Angola’s oil First oil concession granted in deep waters 1991 2013 Angola makes first LNG delivery and establishment of state-owned in Block 16 (to Brazil) Sonangol UEE 2009 ExxonMobil and partners reach 1 billion barrels of cumulative oil production from Angola oil production 100,000 bpd 1992 Establishment of subsidiary Sonangol P&P deepwater Block 15 as an oil exploration company 2015 Angola marks 100 years of oil drilling 1983 Institution of the company’s first international subsidiary, 1996 Elf Petroleum (now Total) discovers Girassol Sonangol Ltd (London) Girassol FPSO field in deepwater Lower Congo Basin at a water depth of 1,300 metres Sonangol archive 1999 Sonangol UEE changes its statutes and becomes Sonangol E.P. 2016

First floating production, storage and Sonangol celebrates 40 years offloading (FPSO) vessel on stream in Angola (Project Kuito, Block 14)

20 SONANGOL UNIVERSO SONANGOL UNIVERSO 21 Total EDUCATIONPARTNERS PARTNERS Kostadin Luchansky

WHAT DOES WEATHERFORD DO?

WEATHERFORD Weatherford’s service divisions comprise Formation evaluation and well construction, and Completion and Production. Altogether they total WATCHING 15 specific types of service. Formation evaluation and well construction This division includes drilling and its tools, tubular running services (TRS, well casing and well shaft reinforcement), wireline services (cables to control tools and monitor wells), testing and production services, re-entry and ‘fishing’, cementing, well liner systems, integrated laboratory services and surface logging.

Completion and production This area includes systems and well completion systems. The latter offers tools for flow control systems and well screens, as well as reservoir monitoring. Weatherford’s best-selling service is its TRS, Angola hosts a range of international oil service an area in which the company is a recognised leader worldwide as well as in Angola. companies. Universo spotlights Weatherford It is also the only provider of managed pressure drilling services Services, one of the world’s top five in the country. Leading its product sales are liner-hangers (proven technology and applied in a difficult

s wells reach ever greater conditions. Weatherford Services is one For example, the retrieval of drills environment in Angola). A liner- depths and are more likely to such company. and debris from deep wells known as hanger is a device to position an oil A be offshore and in increasingly The firm serves all the major oil known as ‘fishing’, may save an liner, which is used to create a extreme environments, drilling players in Angola: Chevron, Total, producer between $100,000 and $1 vacuum in the final stage of completing for oil and gas has become a very BP, Esso and Cobalt, as well as million per day in lost operating and a well for pumping. sophisticated business. A number of Sonangol P&P. The technology it uses production time. companies have developed techniques has brought a great deal of success A one-stop shop for oil drilling and tools to provide the specialist, to all international oil companies, companies, Weatherford has its head Domingos Freitas, often ingenious services required for a said Weatherford’s country director, offices in , Texas. It has been Weatherford country director wide variety of locations and geological Domingos Freitas. very active in Angola since 1999 and is

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one of the top five oil service companies in the world. According to its 2014 annual CASE STUDY: SONANGOL P&P report, competitors include , Weatherford specialises in , , National Oilwell Varco, , oil and gas and is dedicated Weatherford has worked closely with Sonangol Noble Energy and .

Sonangol Archive “Weatherford is a service company P&P, often to tight schedules. On one occasion to maximising the value of specialising in oil and gas, dedicated Sonangol P&P needed TRS for a completion to maximising the value of clients’ clients’ natural resources at Well Gazela 101 within a timeframe of two natural resources; it’s one of the largest in the world for products and services weeks. Owing to the presence of CO2 (carbon including drilling, evaluation, execution, dioxide) and H S (hydrogen sulphide) in the 2 production and in oil and natural gas – Domingos Freitas field, chrome pipe was selected by the operator cycles,” Benguela-born Country Director and so specialist equipment to handle and run country operations manager, Walter the chrome completion was required. Costa, told Universo. Sonangol has engaged Weatherford In response, the Texan firm supplied, for major TRS operations as well as the-art facility at its Viana base, which co-operation agreement with the prepared and provided a TRS package for the fishing. The supplier has two bases, one at will be completed this year, said Freitas. National Petroleum Institute of Angola completion, using high-tech equipment that Viana (covering 3 hectares) near Luanda As part of its hands-on training (INP) to set up a recognised MPD training was made immediately available. Once the and another in Malongo. It is building a scheme, a full-size drilling rig has programme in Angola, said Freitas. newer facility in Cabinda (8 hectares). already been set up at the Viana site so equipment was serviced, it was checked by The company currently employs 510 that students can get a feel for the job. Mentor training Sonangol representatives and given satisfactory feedback. The job was run smoothly and the completion was staff in Angola, of which around 75 per This will not only improve the Every expatriate has to mentor an installed within the well programme. The solution offered also preserved the integrity of the pipe as no insert cent are nationals. competency of Weatherford’s own Angolan successor as part of the marks (‘jaws’) ended up on the surface of the pipe, thus ensuring proper pipe preservation in the well. “We provide unique technology to workforce but also offer practical company’s obligations to the market. An oil companies around the world, and experience to university students and on-the-job mentor training programme The job was critical as it required specialist handling and running equipment for the chrome pipe. they have the same needs here as they the oil sector in general. teaches experienced employees how to Weatherford provided a proper solution and ran the job successfully while meeting the short deadline. do abroad. They also want the same The programme planned at Viana become effective mentors and transfer success in Angola. The jobs created includes running ‘Introduction to their knowledge to a new generation. by Weatherford support 385 Angolan the ’ courses once This is of crucial importance to families,” said Domingos Freitas. per quarter for new employees and Weatherford’s efforts to nationalise its external candidates. workforce in Angola.

Shutterstock Hands-on training Theoretical technical teaching will The target groups for Weatherford As regards training, Weatherford has be provided in classrooms by company are its own staff and native Angolan nurtured many engineers and offered experts or by external training providers. employees as investment in internships to Angolans, while also Practical technical training will development of the national workforce. transferring knowledge to engineers. involve the TRS test and training tower, The company also intends to The company has agreements with one the managed pressure drilling (MPD) flow offer training to client and Sonangol local university to offer seminars, and loop and other apparatus. Angola is a employees as well as to university the institution has also become a source prime growth market for MPD, and there students at the Viana base, especially for recruitment. is a need to invest in the development of for new technologies. Weatherford has A critical corporate contribution and local MPD engineers. formed a strategic partnership with focus in Angola is technical training. To In light of this, Weatherford is a local university to provide student this end Weatherford is building a state-of exploring the possibility of a training and internships.

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Research, development and patents CAREER PROGRESSION: A heavyweight oil service provider, WALTER COSTA, Weatherford is proud of its world-class technology and international training COUNTRY OPERATIONS MANAGER centres. It also invests heavily in research, development and engineering facilities Country Operations Manager Walter Costa has had a “A lesson that I learnt is that first you Walter Costa with the aim of improving existing remarkable career at Weatherford. need to do what has to be done – that is, do products and services, such as drilling and After studying at university in Luanda, to make ends meet the work in the best way possible, always enhancing reservoir productivity. Company investment in research and he took a job as a driver for a casing solution provider in respecting different cultures, races and development is rising, with expenditure of Angola. He then worked as a workshop helper where he learnt beliefs that exist within and outside the $290 million in 2014, compared with $265 about maintenance, cleaning, painting and testing of hydraulic company,” he explained. million in 2013 and $257 million in 2012. and pneumatic equipment. “I also learnt as much as I could so as to Costa recalled having good mentors at his first employer, have as great an experience in operations CSR with experience in a range of areas. He then progressed to as well as in the area of administration, Weatherford takes its corporate social responsibility (CSR) in Angola very being an offshore technician. In 2003–04 he then went on to maybe because I dealt with the right people seriously. The company sponsors 40 do various courses abroad and acquire new skills, and worked who were experienced in a range of sectors. pupils at a primary school in Cabinda, on projects related to Blocks 31, 18 and 15. After training, he Weatherford was and continues to be a great where it is also constructing fencing returned to sea as offshore supervisor and crew chief, and school for me and for the generations to and a water reservoir for an orphanage. within five months was made operations co-ordinator at BP come,” he added. It is providing close to $500,000 for an Angola, responsible for Blocks 31 and 18. What does Costa like best about his job? advanced patient care manikin as a human body training aid for Cabinda Weatherford then offered him a job as its base co-ordinator “The thing that I really like to do in our University’s faculty of medicine. at Total-operated Block 17. He accepted the position because organisation is doing my work with great care, First you need to do what While revamping the Viana base, of the opportunities and professional experience he could doing it well every day. I have fun and enjoy the the firm gained the good will of the local acquire. After just four months he was transferred to pleasure of excellence, the aesthetic pleasure has to be done – that is, do community by rebuilding roads and Weatherford Asia Pacific in India, where he worked for three of the quality of perfection. As a manager we fixing drainage and power lines. This the work in the best way infrastructure also serves a nearby clinic years both onshore and offshore. must be examples to be followed. and school, giving the neighbourhood On returning to Angola, the company made him a workshop “I like the everyday interaction with possible, always respecting easier access to health and education, supervisor because of his experience. In June 2009 he was colleagues, clients, commercial partners, different cultures, races and mentioned Freitas. named TRS Operations Supervisor managing operations in suppliers, government regulatory organs and Luanda and Soyo for Sonangol, Somoil, Eni, Maersk Oil Angola communities, because with this interaction Local partnership beliefs that exist within and and Total. we work intensely according to the situation The company is proud of its partnership outside the company with Cimel Oilfield Services. Through In 2012 Weatherford transferred him to Cabinda as operations of the current market, seeking to innovate, Cimel (a growing Angolan company), supervisor, managing operations and specific projects in Blocks encourage and always have a humble posture, Weatherford has positioned itself as the 14 and 0, the Congo River Crossing and Lianzi; he was also made and including discipline as a norm,” he said. – Walter Costa foremost supporter of sourcing local trainee operations manager in Cabinda. “The principles are clear: it’s much easier Country Operations Manager content in Angola. Local content counts, In 2014 he took on his current role as Angola country to achieve professional success doing what local content works. operations manager. you like.”

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UPSTREAM UPSTREAM Engineer Frederico Ferraz Domingos What is SHI? Sonangol Hidrocarbonetos Internacional (SHI) is Sonangol E.P.’s subsidiary focussed on researching, prospecting and producing hydrocarbons outside of Angola. It was established in May 2012 to support Sonangol’s internationalisation strategy of managing and acquiring new assets abroad. SHI also prepares and co-ordinates actions aimed at repositioning the Sonangol Group internationally.

IN What is SHI’s corporate mission? SHI’s mission is to exploit, develop and produce liquid and gas hydrocarbons efficiently as well as profitably.

What are its main goals and objectives? Currently the principal focus of SHI is on SEARCH adjusting and resizing the company, as much OF from the organisational point of view as from its positioning. It seeks new opportunities to improve the quality of its asset portfolio and acts preferentially as a non-operating company. Thus SHI has as its principal strategic objectives: • Raising the level of output to a sustainable level FOREIGN • Consolidating the firm’s organisation To achieve these objectives, the following targets were set: • Operational and production improvement • Start development activity FIELDS • Reach the production levels expected • Review/define business processes

What are the company’s greatest challenges and how are they being met? Currently SHI is at the stage of relaunching its activities. Lines of orientation have been set providing a framework for future performance over the coming years, aimed at consolidating Shutterstock Sonangol’s asset portfolio. • Promote SHI’s sustainability Engineer Frederico Ferraz Domingos, chief executive of • Ensure the quality of investments with a view Sonangol Hidrocarbonetos Internacional, outlines the to generating sufficient cash flow to cover its operations and create value for Sonangol E.P. company’s aims and objectives in an interview with Universo • Position itself as the main vehicle for Sonangol’s international projection abroad

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• Adopt company governance rules In Cuba, we are developing geological SHI’s target markets – where defined in the code of governance of studies while in Venezuela, SHI has we intend to invest, considering WHERE IN THE WORLD Sonangol E.P.’s indirect subsidiaries a 20 per cent stake in the company preferentially acting as a non-operator Venangocupet, and two fields and having stakes of not more than 20

All this is intended to realise the (Migas and Melones) are now in the per cent – are markets with bilateral Shutterstock strategic aim of positioning Sonangol production phase. state accords: , East Timor, abroad as a player in the area of In the , we are Vietnam and Indonesia; and new exploration and production. In light of seeking new opportunities in markets such as Latin America and the expected challenges, strategies have exploration and/or production. sub-Saharan Africa. been defined for each of its business In Brazil, SHI has a 30 per cent units, as well as a range of actions share in the SDM and SOB fields as What are SHI’s major successes? designed for their implementation: the operator. Both fields are in the The subsidiary’s main gains can be ALGERIA • An integrated organisational model production phase. In partnership with summarised as the following: tailored to operations abroad , SHI also has a 20 per cent • The internationalisation of Sonangol VIETNAM • Sustainable and economically viable stake in the Guaynabo Block, which is • The ownership of assets in other CUBA projects which aggregate know-how now in its development phase. geographic regions • A preference for partnerships • The possibility of intensifying

with companies with recognised Is SHI studying the possibility prospecting and production in the EAST TIMOR technical capabilities (international of operating elsewhere, such oil concessions acquired USA oil company operators and service as in East Timor? • Optimising results in the medium SÃO TOMÉ providers) to minimise risk Taking into account SHI’s long-term and long term. AND PRÍNCIPE • Invest in assets with clear potential objective of positioning itself as the main • Have a balanced portfolio with a vehicle for projecting Sonangol abroad, What other partnerships does focus on core business some markets have been identified SHI have and where?

• Governance based on the Sonangol which will be the target of SHI’s SHI has a 30 per cent stake in Block 2 VENEZUELA group model interest in establishing its presence. in the Special Economic Zone (ZEE). Market selection was based on It is also operator in a partnership in What is the current their potential in terms of oil and gas São Tomé and Príncipe with Sinoangol BRAZIL ANGOLA INDONESIA situation of SHI operations reserves, the presence of fruitful areas STP and ANP-STP. This project is in and partnerships in Cuba, in these regions, as well as the presence the exploration phase. Venezuela, the Gulf of Mexico of international oil companies with It participated in the fifth round of and Brazil? which one may establish partnerships. tenders in Mozambique in partnership with Total for the exploration of hydrocarbons in the Angoche Basin, where it hopes to acquire a 15 per cent stake, if its proposal is successful. SHI’s long-term Malocha Malocha What type of investment is objective is to position SHI making? In light of the strategy of renovation itself as Sonangol’s underway, SHI has available a portfolio of investments that main vehicle abroad include exploration projects and field development, in business units where it has a stake. In relation to the

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exploration projects, we concentrate brings a return and adds value to well as in established careers, on the acquisition and interpretation of the company. which will certainly give us a 2D and 3D seismic data, environmental workforce composition with the FREDERICO FERRAZ DOMINGOS impact studies, and geological and What is your evaluation of the optimum profile required in the geophysical studies, as well as drilling staff currently working at SHI? area of activity SHI is seeking and and research and evaluation well tests Before answering that question will help us reach the strategic Frederico Ferraz Domingos became president of SHI’s (in Brazil, Mozambique and São Tomé directly, I would like to emphasise that objective mentioned above. executive board in April 2015. Born in , Uíge and Príncipe). there is a corporate plan for training province, in northern Angola in 1962, Domingos has Other projects being developed specialist staff in the Sonangol Where do you see SHI in enjoyed a distinguished career in the oil industry. As an include investment in development Group, which is co-ordinated by the the next two years? 18-year-old he was selected to train in , , well drilling and the redevelopment Corporative Educational Board at According to SHI’s strategic plan of fields (Brazil and Venezuela). We Academia Sonangol. The foundations over the next two years, we will in the former Soviet Union. After five years, he returned are also considering investment have been laid and steps are being have a company duly adjusted to gain practical experience in Angola as an oil geologist, in acquiring new stakes in assets taken to reach the planned objectives. and resized with a portfolio of before studying for another five years in Baku. By the through ‘farm-in’ or tenders as part of With this in mind, I would say that restructured assets, and with 1990s, Domingos was a senior geologist and undertook our new opportunities. the staff currently working for SHI a new philosophy in broaching further studies in Austin (Texas), and Luanda. is multicultural and multinational new markets, while always What are your future foreign given our global activity and brings taking into account a reduced Domingos moved into management in 1998 as investment plans? together the required competencies exposure to risk. a project co-ordinator where he was involved in oil Regarding future investment, SHI for the upstream segment. Some reservoir characterisation, an area where he has acquired aims to continue existing projects and of them have more than three What role should SHI substantial knowledge and computer modelling skills. intensify research in novel exploration decades of experience. The current have in Sonangol E.P.? From 2005 to 2010 he was head of geology at Sonangol’s and production opportunities in challenges demand constant updating SHI should position itself as department of exploration. He was named a board current and new markets, with the of knowledge and that’s where the the main vehicle for Sonangol’s objective of developing a sustainable corporate plan for training specialists international projection abroad. member of Sonatide, a shipping services company for the portfolio, in sum: comes in, particularly for those based offshore oil industry, in 2005 and was named president • Acquire new assets with the potential in Angola. Finally, what would of the board of Sonasurf, a provider of offshore vessels for oil you like your legacy to and services, in 2010. Domingos was vice chairman of • Growth that is based on tenders What is the profile of the be as chief executive of Sonangol P&P from 2012 to 2015. and acquisitions workforce? the company? • Restructure the portfolio in our If we look at the concept of knowledge, Being a geologist by profession, He speaks Russian, French and English in addition to current markets skills and attitude, SHI’s staff I would like at the end of my his native Portuguese. • Broach new markets to research have a profile that demonstrates mission at SHI for the company new opportunities knowledge and skills. There is work to be recognised and appreciated still to be done concerning attitude. for having a valuable portfolio Due to the fall in oil prices, As is the case for any organisation of assets, holding a volume Emanuel Jardim what is the company’s current in a competitive market, we are of robust reserves capable strategy for investment in the concentrating on restoring attitude, of contributing to leveraging short term? and the project ‘Vestir a camisola’ the objectives of the parent The fall in oil prices has led all of us (‘Represent the company with pride’) company. Furthermore, I would to be more cautious and creative in has largely contributed to recovering like to leave the company duly everything we do. In our investments this value. structured and repositioned we certainly will always have to We continue to invest in the with its business units from the consider the risk matrix in the first development of competence and in organisational and operational place, so that each dollar invested models of evaluating performance, as point of view.

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SOCIAL RESPONSIBILITY Lauren Schneider SOCIAL RESPONSIBILITY

ali-born Mamadou Marcel Blondin Beye is general manager for policy, government and public Maffairs for Chevron Africa and Latin America. He took on his present Houston-based role in January this year but has been with Chevron since 1997. He CHEVRON CARES: previously worked in Angola, South Africa and the UK. In Angola, Beye was corporate responsibility manager, where he played a lead role in the design, implementation and evaluation of the award-winning Angola Partnership Initiative. He is also a former chairman of the US-Angola Chamber of Commerce.

Are there any particular characteristics of Angola that make it easier or more difficult to implement CSR projects? Angola is at the vanguard of social investment for Chevron because we have a long history of productive partnerships with central and provincial governments, Sonangol, multilateral institutions and financial entities that has created an environment that encourages and enables CSR successful social investment. Beyond contributing through direct business activities and taxes, Chevron has invested more than $215 million in IN ANGOLA local Angolan communities over the past 27 years. These strategic social investments focus on health, education and economic development programmes and partnerships. We have learned through decades of experience that Chevron’s business success is built on long-term, Mamadou Marcel Blondin Beye from collaborative and mutually beneficial relationships. The openness of the Angolan central and provincial governments Chevron tells Universo about the oil has been crucial in achieving outstanding results. More giant’s Corporate Social Responsibility importantly, the people of Angola have played a significant role in the success. Communities have always welcomed experience in Angola Chevron and they have also embraced the idea that they must play an active role in their own development.

What measurable progress has been made in the project of reintegrating returning refugees into Angolan society? Over a decade ago, we agreed to fund reintegration work in several provinces across Angola, including Cuando Cubango. As part of this project, which started in 2005, we constructed and equipped three schools. In addition, we supported income-generating activities at women’s empowerment centres established by the United Nations High Commission for Refugees as well as in selected

communities. Typical income-generating activities

34 SONANGOL UNIVERSO For the next generation SONANGOL UNIVERSO 35

SOCIAL RESPONSIBILITY SOCIAL RESPONSIBILITY

Healthcare aid Lauren Schneider

included cattle breeding, goat diseases; and increase the people, currently implemented in As technology stretches breeding, seed multiplication capabilities of healthcare workers, 90 schools. We have contributed the frontiers of resource and other agriculture-related the facilities in which they work to teacher instruction, provided endeavours. Our current work and the equipment they uses to resources for classes and development, community in education supports and funds perform tests. We support the computer laboratories, and donated the building of primary, middle, Cabinda blood bank that provides a vehicle to transport students to expectations are also growing secondary and vocational schools safe blood transfusions for patients. offsite classes. in the provinces of Cabinda, Luanda We also joined the Ministry of On the economic development and Cuando Cubango. Health and the Baylor College of front, one of our most innovative Medicine International Pediatric projects is the Cabinda Business investment programmes. Many international companies What other kinds of CSR projects AIDS Initiative to help establish Incubator, inaugurated in 2014. bring jobs, revenue, investments in local suppliers are you involved in in Angola? the nation’s first comprehensive Chevron financed the construction and community programmes to Angola – all the right The investments Chevron makes sickle cell screening and treatment of the facility and supplied ingredients for development. But too often, the potential in the people and communities programme. The project seeks equipment in the $500,000 of broader economic and social benefits has not been where it operates are as integral early diagnosis, better treatment investment. This programme aims sustained locally. to the company’s business success of newborn babies and increased to help improve business diversity As technology stretches the frontiers of resource as investments in drilling wells awareness among health in the local economy in alignment development, community expectations are also growing. or building production facilities. professionals. More than 135,000 with the strategic priorities of the Innovative thinking in our industry has changed so much Chevron’s goal is to help develop babies have been tested since Angolan government. A total of 32 else, and now it’s changing the way we think about strong, sustainable local economies July 2011. companies have benefited from community development. Today, that development is and sustainable social investment programmes. We with healthy, thriving populations Regarding education, Chevron the project. being done through multilateral partnerships that include understand that we operate today at the centre of a – the foundations of any successful shows its commitment to young companies, local communities, governments and NGOs. By complex ecosystem that includes host governments, nation and business enterprise. Angolans in many ways. In Luanda, You have advocated a greater pooling resources and spending efficiently, we can build business partners, communities, NGOs and multilateral Chevron works with Sonangol, we have supported the Instituto role for business in CSR projects larger-scale multi-year initiatives focused on building broad organisations. In this ecosystem, it is important that business partners, the government Médio Industrial de Luanda (IMIL), and have mentioned possible economic capacity. companies commit themselves to align their business of Angola and community members a secondary school for more than roles for commodity companies, objectives with the particular country’s aspirations for to achieve this vision. 3,000 students. presumably in providing seeds and Why do you think it is so difficult to involve governments economic and human progress. We make strategic social We are partnering with pesticides for farmers. Have these in grass-roots social and economic development projects investments in three areas: Lwini Foundation and FORMEI companies shown an interest in in Africa and Asia, often leaving engagements to Chevron has a long history in Angola. What have been its health, education and economic in providing vocational training co-operating in Angolan projects? international donors? Has there been any change in this CSR successes in your view, and where and how do you development. In health, Chevron for people with disabilities to I believe there is important work attitude in recent years? see the company contributing in this area in future? supports programmes that improve improve their access to the job being done by other corporations in Based on our experience in Africa, involving governments Over the past three decades, we have spent millions of mother and infant health care, market, and we are also providing association with central and local as partners has not been difficult, it has been essential. dollars on health, education and economic development combat HIV/AIDS, tuberculosis, a curriculum that aims to develop governments to create partnerships We make a priority to understand the needs of the host programmes, but I believe it’s also important to highlight malaria and other infectious entrepreneurial skills among young that develop impactful social countries’ communities in order to develop collaborative our local content initiatives.

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SOCIAL RESPONSIBILITY SOCIAL RESPONSIBILITY

Supporting a brighter future

Chevron’s vision of local content supplied by more than 200 Angolan the private and public sectors to our development partners, including the Agency for Lauren Schneider includes building the capacity of businesses. Approximately 44 per cent foster prosperity that can last for International Development, USAid, created the API the local workforce in order to of products and services the company generations. In Angola, we have had to support education, food security, capacity building foster competitiveness and increase purchased by the company were important results achieving this of government institutions and small business the number of local companies produced locally. Through various vision. A great example is the Angola development in Angola. This initiative was the supporting the oil and gas industry. programmes, Chevron provides Sickle Cell Initiative. The project has recipient of USAID’s “Global Development Alliance The long-term view is to support personalised training and professional not only screened tens of thousands Partner of the Year Award” and runner up for the US initiatives aimed at building a robust, advice to micro-, small-, and medium- of children, but also trained more Government Secretary of State’s Award for Corporate capable and competitive chain of sized Angolan enterprises, helping to than 500 local health professionals Excellence in 2006. As the company’s first public- locally based companies. increase their competitiveness. on how to perform diagnoses, sample private partnerships established in Africa, the API The firm also supports the The company also aims to enhance selection and counselling. yielded remarkable results. The co-operation between government’s Angolanisation policy, local companies’ understanding of While significant progress has public and private sectors, the joint development of intended to increase the number of what is needed to effectively compete been made in the way companies programmes and sharing of resources were pivotal Angolans employed by international for business opportunities with and investors think about social for the program’s success. companies, particularly in supervisory large international corporations and investment, there remains a tendency We took lessons from that experience and created and management roles, and improve enable them to expand by providing to define CSR only in terms of in 2011 the Partnership Initiative in the skills of the national labour force. sustainable, safe and high-quality philanthropy. Such programmes, Nigeria, which promotes economic development there. We partner with local schools and goods and services to the Angolan oil however, no longer exist merely to Our success in Angola has helped us transfer to universities, provide scholarships to and gas industry. To boost the role of satisfy an obligation. They are proving other countries a model in which we moved from employees and their children, and homegrown firms in the oil and gas to be an essential part of bolstering donors to partners, from building bricks and mortar provide government employees with industry, Chevron has sponsored the a company’s sustainable worldwide to building capacity and from one-off endeavours to access to our facilities for training Business Opportunities for National operations. The value of the impact sustainable programmes. and development. Approximately 89 Companies forum in Luanda for social investments made today can per cent of employees and 64 per cent current and potential suppliers. have in five or ten years or even of managers in Chevron in Angola generations from now should never are national workers. We expect to Most aid donors hope to end food aid be lost. continue boosting the role of Angolan and make recipients independent of companies in the oil and gas industry philanthropy and become self-reliant, What lessons in CSR project and developing national talent for the turning them into fishermen rather implementation have you learned benefit of the country and Chevron. giving them fish. How successful has from your experiences in places like Chevron been in this regard? the Niger Delta, West Africa and What have CSR initiatives contributed While there will always be a need for Chad-Cameroon pipelines and South directly to Chevron’s Angolan local donations and traditional corporate Africa that you can apply to Angola? content and supply chain? philanthropy, the world today In many ways, it has been the other In 2014, Chevron spent more than demands more deeply collaborative, way around. Social investment $1.5 billion on products and services lasting partnerships between initiatives using a public–private partnership approach and In 2014, Chevron spent more participatory development process were first implemented in Angola than $1.5 billion on products and and have then been replicated in other countries where Chevron has services supplied by more than 200 operations. The Angola Partnership Angolan businesses Initiative (API), created in 2002, is the perfect example. Chevron and

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ore than 80 per cent of local and major international service Angola’s oil output comes companies and the development of local 01 Mfrom offshore fields and, capabilities and cheaper alternatives POTENTIAL according to Halliburton (2012), around (Abdullah, 2012). 70 per cent of petroleum production Also needed is the use of local OPPORTUNITIES comes from mature fields, where Angolan content and capacity such recovery of ultimate reserves is often as logistical support, engineering and less than 40 per cent. management, fabrication, goods and 02 The recovery factor of most of these services, know-how transfer, training ENHANCED fields is declining, and asset integrity and specialisation. There should also management (AIM) is also a major be a contractual agreement between OIL RECOVERY concern, requiring more investment shareholders, development of marginal along with cost-effective and low-risk fields and a reduction of the approval new technologies to enhance production cycle, as well as tax incentives. and maintenance of infrastructures from 03 the mature fields. AIM involves keeping Major problems MULITLATERAL hardware, such as oil rigs, in good The major issues in Angola mature fields WELLS operating conditions while safeguarding are declining pressure and reserves, their environment. high water cut and gas oil ratio (GOR),

However, wells require economic inadequate gas management, H2S evaluation owing to falling oil prices. and sand production, corrosion and 04 They also need environmental studies, degradation of lines, scarce supplies of UPGRADING field and infrastructure data acquisition spare parts, obsolete equipment and old INFRASTRUCTURE as well as the training of qualified infrastructure. All of these factors lead to specialists in mature field development. unplanned shutdowns. According to Halliburton, mature ANGOLA’S fields are not defined by their age but Revitalisation strategies 05 rather by where the field is in relation Angola’s strategies to revitalise mature PARTNERSHIP MATURE FIELDS to its peak production. In other words, fields are centred on: OPPORTUNITIES a mature field is one where oil or gas • Potential opportunities with geological accumulations have matured to a and geophysical (G&G) technology production plateau or even progressed • Enhanced oil recovery (EOR) methods to a stage of declining production • Side-tracking, horizontal, multilateral 06 It is vital to recover the maximum amount (Abdullah, 2012). and infill wells TRAINING • Upgrading infrastructure (repair, adding SPECIALISTS of oil possible from mature wells, Challenges and opportunities on and replacing new equipment) as Sonangol engineer and PhD student The major challenges of mature fields • Increasing partnership opportunities are falling production and a need for • Training Angolan specialist technicians Geraldo André Raposo Ramos explains a cost-effective approach, low-risk • Know-how transfer between new and 07 technology, and a good understanding experienced workers KNOW-HOW and management of reservoirs. TRANSFER The major opportunities are: the For example, G&G technology plays attraction of small- and medium- a role in improving data quality sized operators, partnerships between where there is a minimum margin of

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error interpretation. New data in different areas including acquisition will reveal additional master’s and PhD programmes. There is still a lot of oil left underground information from the field which Companies must include coaching REFERENCES was unknown at the time of the and mentoring programmes in that cannot be recovered by primary initial development. This may, order to transfer the know-how “Maximizing the value of mature fields”, Halliburton, 2012 among other things, optimise to incoming technicians and and secondary methods the placement of production and engineers and thus avoid the gap Abdullah, R., “Oil and gas industry – opportunities and challenges injection wells. between the experienced and ahead”, Halliburton, May 30, 2012. inexperienced generations. – Geraldo Ramos Training and The country can cut the skilled Peek, P., Fenard. J., Gantes P. and Thelier, C., “Skills shortages in the know-how transfer workforce shortage by increasing global oil and gas industry: how to close the gap, part 1”, Centre de There is a gap between qualified education and training. Closer Recherches Entreprises et Sociétés (CRES), December 2008. We are now in a period of low oil this depends on the size of the field personnel and the new generation collaboration and coordination prices. In the past, what was the and whether the field is offshore or because of the lack of know-how is needed among the oil and gas Tyler, Les “Brownfield engineering: New life” general policy regarding mature onshore. These companies should be a transfer between generations, companies. They can expect better http://www.mcdermott.com/Solutions/Pages/Engineering.aspx wells when oil prices were very low? solution for onshore fields, but I don’t or between supply and demand results when they act jointly rather Did companies switch their efforts to think that they would be capable of (Peek et al., 2008). Other causes than going it alone. Increasing Alvarado, V., Manrique, E., “Enhanced oil recovery: an update review” ‘lower-hanging fruit’ – that is, wells maintaining an offshore field or block. of skilled workforce shortage outsourced training opportunities Open Access Energies. ISSN 1996-1073. August 27 2010. at the peak of production? are: lack of educational facilities, for Angolan professionals in the Production from primary and Is there any sign that companies lack of vocational and technical growing number of educational Hassanau, K., “Revitalising mature fields”, Petroleum Company of secondary recovery is on average are abandoning mature fields as not training, absence of college institutions around the world would Trinidad and Tobago Limited. The 14th Annual Energy Caribbean 30 per cent of oil output. So many worthwhile as oil prices drop? academic accreditation and be highly beneficial. Finally, oil and Conference. 1 – 2 October 2014. companies, instead of producing in Yes. Even when prices are high, the the ever increasing demand gas companies can also provide “Optimising mature field production”. Mexican Oil Congress. remote areas like ultra-deep water economic evaluation decides if it is for higher-skilled workers. The training within the framework of Petrolera de Altamira. 9 -13 September 2012. or areas with very low temperatures, profitable to continue producing or average age of professionals in oil local content requirements. sometimes prefer to invest in existing not. Production in relation to the price overseas than locally due to high taxes and gas is one of the highest of Siqueira, M., Cesar Coelho dos Santos, R., “Os Campos Maduros de fields to recover the immobile oil of a barrel of oil makes investment and customs. any industry, with many people Conclusion Petróleo e o Desenvolvimento Regional: O Caso do Nordeste Brasileiro”; that cannot be recovered using in a project feasible. For example, There is still a lot of oil left having already retired or about to In order to stabilise potential XVII Congresso Nacional do CONPEDI, 20 – 22 November 2008. conventional methods. All these Canuco (SNL P&P) and Xikomba (Esso) underground that cannot be recovered retire in the next few years. At the capacity and increase oil depend on oil price and the cost of were fields abandoned in Angola in by primary and secondary methods. same time, student enrolment in production, it is advisable to apply Kokal, S., and Al-Kaabi, A., “Enhanced oil recovery challenges & producing one barrel of oil. Some the past. Oil companies worldwide The average oil produced worldwide petrotechnical and engineering more oil recovery techniques to opportunities”. Expec Advanced Research Centre, . countries like Saudi Arabia are are more likely to invest in existing is about 30 per cent, and more than 70 courses has been on the decline for mature fields, even as new fields : Official Publication, 2010. profitable even with the price of oil mature wells than to invest in more per cent of these fields are mature. many years, according to Peek et al. are coming online. The success of being below $15; however, countries costly, less accessible fields such as Angola needs to perform a optimising oil recovery processes in Bhattacharya, S., “Emerging technology to enhance production from such as the UK, Venezuela, United those far offshore or in deep water. Is technology finding innovative ways local statistical study identifying mature fields essentially depends mature offshore fields” Ninth Biennial International Conference and States and so on, will not be profitable. to exploit mature fields that were qualified and non-qualified on knowledge of the extent of Exposition on Petroleum Geophysics. Hyderabad, 2012. Should governments give incentives previously deemed too difficult? personnel from engineers to reservoir heterogeneity, identifying With low oil prices, is there any to mature fields while oil prices are Many techniques and technologies technicians. After completing the potential areas of bypassed oil incentive for larger oil companies to low? in IOR [improved oil recovery] and this study, Angola needs to make and accurate well placement in lease exploration of mature fields to Yes, we need incentives – even when EOR [enhanced oil recovery] have available more systematic short order to exploit oil. It also requires small- and medium-sized operators? the oil price is high. Sometimes it’s been developed in the past few years and long professional courses, more specialist personnel to work Although many people think that small- cheaper to manufacture parts such to recover the immobile oil left in specialising and training people in mature field development. and medium-sized companies should as ‘Christmas trees’ [suites of oil and reservoirs including heavy oil. I’m be the solution for the mature fields, gas valves placed on ocean floors] currently working on an EOR project.

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CULTURE

Luanda’s Iron Palace

Triennial Triumph Angolan Art

ComesBy Lula Ahrens Home The third Luanda Triennial arts festival witnessed the Foundation’s landmark success in returning classical Tchokwe art to Angola from Europe

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he first edition of the The Sindika Dokolo Foundation, Triennial was launched in which co-runs the Triennial, has T2006. Since then, the cultural its provisional headquarters in the mega-event has grown to become recently restored Iron Palace in a focal point in the increasingly Luanda. This remarkable, highly Iron Palace vibrant and artistically dynamic ornamental building in the city centre Angolan capital. Titled From Utopia is believed to have been designed by The Iron Palace (Palácio de Ferro) is to Reality, this year’s spectacle aimed the world-renowned French engineer shrouded in mystery. There are no to spark debate on the intrinsic Gustave Eiffel famous for the Eiffel reliable sources of information about the value of African art, challenging Tower in Paris. history of the picturesque building, which assumptions that it is both strange A substantial number of Triennial is thought to have been erected between and inaccessible. events are being held in the palace 1880 and 1896. The latest incarnation of the and its beautifully lit gardens, among One version of its history claims that Luanda Triennial opened on them concerts by legendary bands and a ship carrying the palace’s prefabricated November 1, 2015 and runs until singers including Os Kiezos, Carlitos cast-iron structure was forced to dock November 30, 2016. It consists Vieira Dias and Nuno Mingas’ Banda in Angola on its way to an international of classic and contemporary art Next, as well as Afra Sound Stars, exhibition. The journey unexpectedly exhibitions, theatre projects and Gabriel Tchiema, Ndaka Yo Wiñi and ended in Luanda when the metal structure publications from Angola’s art history, Anabela Aya. was bought by a commercial sugar cane company, who put the building together. When the broke out in 1975, the palace stood abandoned The theme connecting until a series of state institutions used , it as their headquarters. Eventually, the all the Triennial s Ministry of Culture handed responsibility for it to Endiama. The state company elements is the history and participated in fully restoring the quaint building, which stands in a green oasis of plants among Luanda’s new high-rise future of African art buildings in the downtown area. Building work lasted two years and made use and some 150 conferences, concerts, The exhibition space has been of original materials. The palace was radio and television productions, as made available by Angolan diamond reopened to the public in January 2016. well as educational programmes for company Endiama, one of the major students. The theme connecting all sponsors of this year’s cultural these elements is the history and celebration, has made the exhibition future of African art. space available. Eco Tur Angola Not only does the current Luanda’s historic Elinga Theatre extravaganza take place in five is also hosting several performances. Angolan cities (Luanda, Huíla, This traditional venue has reportedly Benguela, and Zaire), it is also reached an agreement with the crossing Angola’s borders into São Sindika Dokolo Foundation and Tomé and Príncipe, and even going property development company, further afield – , Portugal and Imogestin, as a result of which it will Niteroi, Brazil. undergo extensive restoration works.

46 SONANGOL UNIVERSO SONANGOL UNIVERSO 47 Tchokwe mask CULTURE CULTURE

Sindika Dokolo and his wife The foundation believes that against colonialism and this date is commemorated annually in Angola. contemporary African art The pieces are to be returned to the should be accessible to Africans same museum in , after their and have an impact on their lives exhibition at the Triennial. Back to Africa Sindika Dokolo Foundation Dokolo wants to return to Africa Art collector and businessman Sindika Dokolo is the exhibits that originated on the son of a Congolese father and Danish mother, and is the continent. The repatriated artefacts husband of President José Eduardo dos Santos’ daughter, on display are part of a much larger Isabel. He created the Sindika Dokolo African Collection of campaign to bring back African works Contemporary Art in 2004 with the assistance of its current of art currently exhibited in Western vice president, Angolan artist and curator Fernando Alvim. institutions or sold on the European Alvim is the moving force behind organising the Triennial, and American markets. together with other public and private stakeholders. The primary target is art Dokolo’s collection of African art comprises roughly appropriated during the colonial era. 5,000 works, which include ethnographic art and tribal The foundation’s team of researchers masks as well as contemporary pieces by William and specialists tracks down pieces Kentridge, Ghada Amer, Chris Ofili, Marlene Dumas and in personal collections and on the Yinka Shonibare, among others. art market. According to the website The foundation’s credo is that African art should be ArtViatic.com, Dokolo has offered accessible to Africans and have an impact on their lives. to either buy them for the price It promotes international marketing of classical art, the originally paid, or possibly sue their development of contemporary art and enhancing the global owners for theft. prestige of African artists. The collector’s goal is to return So far, the institution has held 590 events on African Africa’s artistic heritage to Africa and soil. It has also supported educational programmes to exhibit the works in the artists’ benefiting 55,000 children. It also played a major role in home countries. Getty Images setting up the first African pavilion at the 52nd Venice He explained his point of view Biennale. One of the foundation’s goals is to build a in an interview with The New York contemporary art centre in the Angolan capital. Times during an exhibition in terms of its influence on artists like still considered the greatest specialist Portugal: “There are works that Picasso or Braque,” he told the paper. on Tchokwe art and culture, having Return of stolen Angolan art disappeared from Africa and are In another interview with True spent an incredible amount of time in On February 4, in a symbolic gesture, Sindika Dokolo now circulating on the world market Africa, Dokolo said: “We realised the Dundo region, doing ethnological presented two nearly 200-year-old Tchokwe masks and a based on obvious lies about how that, although the museum had been work, studying the art, language and statue of a male figure to President dos Santos. they got there.” In his opinion the completely restored and rehabilitated music of the Tchokwe people. We The three pieces had reportedly been looted during art market’s disdain for African art after the war, none of the masterpieces realised that her archives contained a Angola’s civil war (1975–2002) from the Dundo Museum in the makes this already unacceptable of African art was there. So, along lot of pictures of important artworks province of Lunda Norte, which had exhibited them during situation even worse. with my friend Tao Kerefoff, who is an that were once housed in the museum. the Portuguese colonial era. The Sindika Dokolo Foundation “Sotheby’s and Christie’s [the amazing Parisian dealer specialising in These pictures of pieces that were managed to recover them after years of negotiations with international art auction houses] classical art, we started working on the in the museum led us to a logical European collectors in France and . mostly capitalize on how important archives of Marie-Louise Bastin. conclusion. If they were not in the The timing of the event was symbolic, as February African art has been in the “Bastin was a Belgian lady who Dundo Museum, then they were 4, 1961 marked the beginning of the armed struggle modernization of European art, in passed away in the year 2000. She is probably somewhere on the market.”

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Behind the Tchokwe masks The Tchokwe people, once one of the 12 clans of the great Lunda Empire of the 17th and 18th centuries, originate from the northeast of Angola and the southern part of the Democratic Republic of the Congo. They became independent when they refused to continue paying tribute to the Lunda emperor. A combination of successful trading and abundant resources turned them into one of the wealthiest peoples of Angola. By 1900, the Tchokwe language and influence prevailed in northeastern Angola and spread among the Lunda peoples. The Portuguese colonial authorities had had very little contact with the tribal group until they began trading wax, rubber and ivory in the 1930s. Soon after this first encounter, the Portuguese brought an end to the regional dominance of the Tchokwe.

The Tchokwe people, once one of the 12 clans of the great Lunda Empire of 17th- and 18th- century Angola, originate from the northeast of Angola and southern Democratic Republic of Congo

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Our history began to be written 40 years ago. It's been a journey marked by innovation, training, and of job creation. But also by technological development, discovery of oil fields, internationalisation and commitment to our people in every front. From health to education, from culture to sport, from conservation to environmental sustainability... That's 40 years of history that together we will continue to write, for the www.sonangol.co.ao well-being of the whole nation.