Universo MARCH 2011

WINGED WONDERS: how birds are boosting tourism TRAINING FOR SUCCESS: why studying abroad is a good career move BANKING: when growth is a pathway for investment CLASS ACT: building a new future for schools

Leaping ahead Sonangol 35th anniversary sparks celebrations around the globe

INSIDE: oil and gas news CONTENTS

Universo is the international 44 magazine of Sonangol INSIDE THIS ISSUE 6 30 Board Members ur second edition brims Manuel Vicente (President), with good cheer as Sonan- Anabela Fonseca, Mateus de Brito, gol not only celebrated its Fernando Roberto, Francisco de Lemos, O Baptista Sumbe, Sebastião Gaspar Martins 35th anniversary but also Sonangol Department for announced buoyant provisional Communication & Image 2010 earnings. Sonangol marked the Director João Rosa Santos occasion with charitable donations, Corporate Communications sporting and cultural events as well Assistants as by holding parties across the Nadiejda Santos, Lúcio Santos, Cristina Novaes, José Mota, globe from to London, Beatriz Silva, Paula Almeida, Houston and Singapore. Sandra Teixeira, Marta Sousa More good news stories Publisher contained in this issue include Sheila O’Callaghan ‘Training for Success’ which looks Editor John Kolodziejski at the rising proportion of Angolans Art Director taking up important positions in 12 Garry Lyons the oil industry. Sub Editor Banking is a booming activity in Ron Gribble . We survey recent progress Advertising Design Bernd Wojtczack and interview a director of BAI, the Circulation Manager country’s leading bank. Matthew Alexander Central Angola’s industrial Project Consultants revival continues apace and we look Nathalie MacCarthy Mauro Perillo at an innovative furniture Group President factory, which uses new technology John Charles Gasser to upgrade existing timber reserves. Universo is produced by Impact Media Lastly we reveal some of the Custom Publishing. The views expressed in the publication are not necessarily largely unknown delights of the those of Sonangol or the publishers. country’s ecology – a prospective Reproduction in whole or in part without prior permission is prohibited. niche for eco-tourism – in our story 22

This magazine is distributed to a closed on rare Angolan birds. Kamene Traca, Michael Mills, Carlos Moco, Capua. Esso circulation. To receive a free copy: [email protected] Circulation: 17,000 4 ANGOLA NEWS BRIEFING 6 TRAINING FOR SUCCESS 22 CLASS ACT SONANGOL NEWS Angola’s President Jose Eduardo dos Angolans are returning home from their A Huambo carpentry factory is expanding Santos makes his first state visit to South studies abroad and are taking up output of much-needed school furniture 38 SONANGOL NEWS BRIEFING Angola subsalt exploration; palm-oil fuel project; Africa; President dos Santos lays the increasingly important positions in the by using an innovative wood treatment The Universo team while in Superleague Formula gets underway; Angola LNG foundation stone for the regen- oil sector, proving the success of the process which will make full use of local Luanda stay at: project moves forward; deal with Cuba signed; www.hotelrouxinol.com eration project in Luanda; Angolan GDP government’s Angolanisation policy forestry plantations Sonair expands operations; Sonangol takes interest grew at record rates through 2010; Davenport House in construction firm 16 Pepper Street, Angola pledges infant mortality cut; 12 WINGED WONDERS 30 BANKING ON ANGOLA’S London E14 9RP farm output rises; Angola runners-up in Birdlife enthusiasts and biologists are FUTURE 40 SONANGOL 35TH ANNIVERSARY Tel + 44 20 7510 9595 CHAN 2011; Road-race record combining to put Angola’s beautiful and Angola’s banking sector is expanding A run-down of Sonangol’s 35th anniversary Fax +44 20 7510 9596 largely unvisited interior on the map. rapidly. A leading banker gives Universo celebrations and details of the company’s 2010 [email protected] 5 FIGURED OUT Eco-tourists are showing an interest in an exclusive interview about the industry’s preliminary results Cover: Sonangol A brief glance at Angola in numbers following their lead course of development

2 SONANGOL UNIVERSO MARCH 2011 3 Figured Angola news briefing out

South Africa state visit Health pledge President José Eduardo dos Santos made his first state The Angolan government has pledged to visit to in December, underlining the his- reduce the country’s infant and maternal 1,000 toric and economic ties between the two countries. The mortality rate by 50 per cent over the next two bank branches in Angola by 2013 president led a large delegation of top government min- years. Deputy Minister of Health Carlos Alberto isters to to meet his South African counterpart Masseca made the commitment at the National Jacob Zuma to discuss bilateral co-operation. Accords Forum on the Eradication of Poverty held in were signed in the areas of public works, infrastructure Luanda in January. The minister said there were development, telecoms, information technology, energy plans to build new hospitals and improve local and agricultural co-operation. health services, and focus on improving 6,800 A declaration of intent on the use of finance facilities sanitation in a bid to reduce diseases such as km of roads currently being rebuilt was also signed, paving the way for new South African polio and cholera. credit lines for Angola. The first, from the Development Years of conflict and poor infrastructure have Bank of South Africa, will be worth $255 million and left Angola with one of the highest child-mortality managed in Angola by Banco Africano de Investimen- rates in the world, although government spend- tos. The funds will be used for development and infra- ing in recent years is starting to have an impact.

structure projects. Further credit lines from the Getty Industrial Development Corporation and the Export Credit Insurance Corporation mean the total could Road-run record reach $3 billion, said Angola’s Foreign Affairs Minister Ethiopian running legend Haile George Chicoty. Gebrselassie won the 55th edition 25new electricity substations to be Business leaders from both countries met on the of Angola’s São Silvestre year-end race, built in Luanda by 2012 sidelines to discuss opportunities in Angola. setting a new course record time of 28 President dos Santos, who travelled with his wife Ana minutes and 5 seconds and taking the gold Paula, made a short trip to Robben Island to see the medal. The 10-kilometre event takes place prison where former president Nelson Mandela spent in the capital Luanda every year on Decem- 18 years. In recognition of his personal contribution to ber 31. Kenya’s Josphap Menjou came sec- the South African liberation struggle, dos Santos was ond followed by 15-year-old Ethiopian bestowed the Order of the Supreme Companion of O. runner Bonsa Diba Direba. Ethiopians took R. Tambo (Gold), the highest honour that can be given all three medals in the women’s race. Dire Angop 7.6%Government’s growth forecast for to a non-South African citizen. The order is named after Tune won the gold, Almaz Ayana Eba the Angolan economy in 2011 the late Oliver Tambo who was the African National Achievement silver and Rehime Redir the bronze. Kenyan Congress’s president-in-exile for many years. Angola’s national soccer team succumbed Grace Momanyi, who won in 2007, 2008,

Getty 0-3 to Tunisia in the final of CHAN 2011, and 2009, came fourth. the African Cup of Nations for home-based Fastest growth players on February 25. The runners-up Green shoots Cazenga regeneration Angola was the world’s fastest- position was the first major achievement Government investment in agricultural President dos Santos has laid the first stone to launch growing economy in the last of recently-appointed coach Lito Vidigal. projects is starting to pay off with in- $200 a major inner-city regeneration project in the Angolan decade, its GDP increasing by 11.1 per Rogerio Silva, chairman of the Angolan creased yields during 2010. Cereal crops reg- million – Japanese investment into capital Luanda. cent between 2001 and 2010. A study in Olympic Academy, described the second- istered a rise of 125,000 tonnes (12 per cent a new textile factory in Luanda The project will run in four phases, with 20,000 The Economist magazine citing IMF place as “extraordinary”. up on 2009), according to the Ministry of homes being built in the first two years in the Cazenga data found Angola in pole position, Angola beat Sudan 4-2, the competition’s Agriculture, Rural Development and Fishing. district, currently home to 1.8 million people. followed by China (10.5 per cent growth host nation, on penalties in the semi-final Production of green and root vegetables There will be a mix of apartments and houses for over the same period), Myanmar (10.3 after disposing of Cameroon in similar were also up significantly on the previous 12 people currently living in unsuitable conditions in that per cent), Nigeria (8.9 per cent) and fashion in an 8-7 quarter-final shoot-out. months, while fish caught off Angola rose by part of the city. Ethiopia (8.4 per cent). Angola grew the In the group stages, Angola beat Rwanda 3 per cent to over 180,000 tonnes. 10,000 The regeneration area covers close to 40 square most between 2004 and 2008, peaking 2-1 and drew 0-0 with Senegal. In terms of rural development, 20 new health kilometre fibre optic network kilometres and will include new water, electricity and at over 20 per cent in 2007, thanks to an Angola also drew 1-1 with eventual posts were built serving more than 18,000 completion due this year sanitation infrastructure, as well as local services. increase in oil exports and high levels of champions Tunisia. families and a further 16,000 families bene-

Getty direct foreign investment. fited from new water and energy supplies.

4 SONANGOL UNIVERSO MARCH 2011 5 RETURNING ANGOLANS

More career opportunities for men and women TRAINING FOR - Yvette Moco, Transocean SUCCESS New generations of Angolans are training abroad and returning home to aid the country’s reconstruction by taking up key positions in the now buoyant economy. Universo looks at some of their experiences

y generation is leaving a pe- to perform not only highly-skilled work but riod hitherto lived by other also many basic roles. This is now chang- generations in Angola. Never ing, especially at the top-end of company Mbefore have we had so many opportunities hierarchies as multinationals seek to meet in terms of availability of jobs and career government targets. progression,” said Yvette Moco, human re- Besides providing jobs for local people, sources manager at Transocean, the largest there are also powerful economic incen- oil-drilling contractor in the country. tives for the Angolanisation process. It is Moco, who graduated in Sociology and extremely costly for companies to bring in French at Manchester University, said: foreign workers. “It was a great experience studying in the Apart from Luanda being one of the UK as it gave me the opportunity to develop most expensive cities in the world for expa- analytical as well as interpersonal skills. I triates, there are also the added costs of also had the opportunity to make many flying personnel in from abroad on a friends of different nationalities and get to monthly basis, sky-high hotel rates and in- know different cultures. But, above all, flated salaries to consider. that’s where I grew up to become a respon- An independent oil industry analyst sible adult and shaped my personality in told Universo that expatriate rig-workers terms of management style. It definitely could easily cost a multinational in excess provided me with the necessary skills to get of $200,000 a year when long-distance into the oil industry.” travel and accommodation costs were Moco’s work is not restricted to her taken into account, compared to around a homeland. She is probably the first and the third that amount for a local hire. youngest HR manager in charge of three “In straight economic terms, an oil different locations in Africa. Apart from company incurs significant savings if it re- Angola, she has responsibility for Gabon places an expat by an Angolan. The critical and the Republic of Congo. issue is that the Angolan must be technically capable and have good English Angolanisation language skills since the language of com- Moco’s career aspirations, along with those munication in the industry, especially off- of many others, are supported by the gov- shore, is English,” he said. ernment’s Angolanisation policy of raising “Safety is the top priority. Floating pro- the proportion of Angolans in company duction, storage and offloading [FPSO] ves- workforces. sels operated in Angola produce at rates of Owing to shortages of specialist some 250,000 barrels a day. The oil is highly labour, oil companies operating in Angola flammable so there is no room for  Carlos Moco have long been dependent on expatriates mistakes,” he stressed. Pintoroux

6 SONANGOL UNIVERSO MARCH 2011 7 RETURNING ANGOLANS

Excellent performance key to ‘individual success’ says Claudio Narciso Esso

The benefits to multinationals are not Claudio Narciso situations Angolan fields may encounter in only financial. Greater local staff numbers Esso reservoir engineer Claudio Narciso a few decades from now. improve the company’s communication agrees that career opportunities are Regardless of Angolanisation, Narciso and cultural understanding of the host growing. “I can only speak for Esso Angola said opportunities for career progression nation, and vice-versa, making operations but I believe the situation is the same for would always exist, but were dependent on smoother. other multinationals in the oil sector. At business needs and mostly on an Angolans certainly see the benefits in Esso Angola, by year end 2010, a total of 49 employee’s performance. “We should never terms of career opportunities and promo- Angolans had reached supervisory and forget that excellent performance is the key tions, travel and access to high salaries in a management roles”, he said. According to to one’s success and is very important for widening pool of available jobs. Esso, in 2009 Angolans were performing those who want to assume positions of “Due to the Angolanisation process of around 45 per cent of the overall leadership greater responsibility in the future.” the oil industry, we are now seeing more positions in Esso Angola. Narciso thoroughly recommends commitment from companies and, as a Narciso is reserves co-ordinator for international training assignments. “A pro- consequence, more career opportunities Esso Angola Block 15 where his main role is fessional doesn’t just gain technical skills for both men and women. That said, we still to maximise the economic recovery of oil but also leadership skills and knowledge, have a lot of work to do in terms of devel- and gas. He now operates at Esso’s high- which are extremely important for further oping people but we are on the right track,” tech headquarters overlooking the bay in career prospects.” said Transocean’s Moco. downtown Luanda. His career agenda includes putting Her own future is on track and she In a two-and-a-half-year assignment something back into society. He also sees a aims to continue to develop as an HR pro- in Houston, Texas, Narciso spent six mentoring role for himself. “My current fessional and specialise in the area of months working on reservoir surveillance plan is to grow professionally, and even to Sara Cruz, production operator, reward and talent management. in a 40-year-old field to experience become one of the leaders of the company  trained in Canada Esso

8 SONANGOL UNIVERSO MARCH 2011 9 RETURNING ANGOLANS

Kizomba ‘B’, one of apart from having graduated in Brazil I trainees receive an intensive six-month year specialist courses in Canada and a Claudio Narciso and have gained a different kind of recognition English proficiency course. This meets final year initial work assignment with Sara Cruz’s workplaces here in Angola,” he said. most work requirements and is followed by on-the-job training at one of Esso Angola’s Born in Luanda’s populous and impov- an additional six months on specific tech- offshore facilities in Block 15. erished Cazenga district, Cristovão went to nical English, maths and science training Esso estimates that it invests more study abroad by a fortuitous route. He told provided by Canada’s SAIT. Thirty-one Esso than $300,000 in each trainee to Level 1 Universo that his study grant followed the trainees began this training in 2009. technician status. Some 400 Esso Angola direct interest of the President of Angola. The Esso trainees follow this with one- employees were trained locally in 2009. Along with two brothers and a sister, he caught President José Eduardo dos Santos’s eye when they were reciting poetry at an official event. The Cristovão children learnt their lines by heart and acted as a chorus when accompanying their father at ceremonies held at the National Assembly and other public ceremonies involving foreign dignitaries. The application and discipline shown by Cristovão’s family in their performances so impressed the president that the young- sters were offered educational grants by his philanthropic foundation Fundação Eduardo dos Santos in 2000. Cristovão eventually studied in Brazil at the University of Lins in São Paulo’s rich

Esso farming interior. “My future plans are to im- prove the quality of life in my country and ously developing in the industrial global some sacrifices. “There’s no gain without help the company where I work to grow,” he Training village that is the oil sector. It gives you the pain,” Cruz warned. “Students must be said. opportunity of working across different cul- prepared to be far away from the comfort of Cristovão would also encourage An- abroad gives you tures and improving your level of English, their families in a totally new environment. golans to go and study abroad. “From my the essential business language. “What I missed most about Angola point of view, Angolan institutions don’t yet the opportunity “It also gives you the capacity of know- were our sunny days, lovely beaches, our have sufficient credibility and structure to ing how to overcome cultural differences in rich food and our friendly cultural environ- be able to compete with the quality of of working across order to achieve smooth, efficient and ment in which we believe that friends, education in other countries,” he said. “ effective results in any multinational relatives and neighbours are all a large fam- Several initiatives to improve the over- different cultures industry,” she added, noting that most ily,” remembered Cruz who comes from all quality of Angola’s educational system equipment, technology and processes are Luanda’s Sambizanga district. are going some way to meet these short- imported in Angola. All the interviewees stressed that comings. More teachers, 60,000 in total, are in the future, in order to contribute to the “It makes one feel much more secure the main thing they missed while being being hired to fill places in state-sector excellent growth Esso has had. I also have a and valuable by gaining knowledge from away were their families. But Cruz added education in 2010 and 2011. There is also an moral duty to share what I’ve learnt so far countries that have been running specific that despite the difficulties, studying ambitious nationwide school-rebuilding and help the younger engineers achieve types of operations for a longer period of abroad added value to the Angolan plan underway. their goals,” he said. time,” she said. labour market. More specialist oil-sector training is Carlos Moco ” Cruz echoed Claudio Narciso’s advice available at the expanding National Petro- Sara Cruz to young Angolans thinking of studying Hedson Cristovão leum Institute (INP) at Sumbe in Kwanza

Sara Cruz, a production operator trainee at abroad. “Go for it, because it’s a remarkable Hedson Cristovão, a 25-year-old health and Sul province. The INP was set up by the Albero Juliao Esso, currently working aboard a giant experience,” she urged. “The skills they environmental safety officer at Sonangol, government in 1983. According to INP di- LEILA LOPES is another Angolan student tasting life by studying abroad. She is not FPSO, spent 13 months training at Canada’s learn will allow them to move further in trained in Brazil. The leading Lusophone rector Domingos Francisco, 249 techni- only a student of Business Management in Britain but also has a possibly distracting South Alberta Institute of Technology their careers, have better incomes and and soccer-playing country was a good cians completed courses there in 2009 and alternative career path diversion. (SAIT). consequently a better quality of life.” choice for this lover of football. 560 trainees enrolled in 2010. -born Lopes was voted Miss Angola at the end of last year and will Cruz listed the benefits of training However, would-be students should “The positive side for me was to have Oil companies also use the facilities represent the country in the competition in Brazil next September. abroad: “It broadens one’s view by continu- only go abroad if they are willing to make acquired another culture, I am Angolan but offered by INP. There, Esso Angola technical

10 SONANGOL UNIVERSO MARCH 2011 11 BIRDLIFE ENTICES ECO-TOURISTS

WINGED WONDERS Angola’s wide-ranging, often thrilling, birdlife is attracting rising numbers of eco-tourists and birders. As newly rebuilt roads provide easier access to remote areas, opening up new tourism opportunities, Universo casts an eagle eye over recent birdlife projects

Photos by Michael Mills

12 SONANGOL UNIVERSO MARCH 2011 13 BIRDLIFE ENTICES ECO-TOURISTS

ith its diverse climate and rainforest, through the Miombo [plateau landscape, ranging from savannah woodland], right down into the desert in the south to tropical Namibian desert, so it’s a fascinating collec- Wjungle in the north, Angola is a paradise for tion of habitats within a fairly small area birds and even more so for birdwatchers. and that makes it very interesting.” It has the sixth-longest bird list in Back in 2005, Borrow was lucky Africa with more than 900 species. Angola enough to spot all but two of Angola’s en- also has one of the continent’s most impor- demic species. This time around he is hop- tant “skin collections” – preserved bird bod- ing to complete the list by seeing Pulitzer’s ies used for further study. Longbill, listed as “endangered” by the In- Once only a destination for the hardi- ternational Union for Conservation of Na- est of ornithologists, Angola is now opening ture (IUCN), and Swierstra’s Francolin, only a new door to eco-tourism and scientific re- rediscovered in Angola in 2010. search projects, aided by government in- Most of the people on Borrow’s tour vestment and extensive post-war will be there for pleasure and to tick off reconstruction. their own world bird lists. But there is also a “Angola has beautiful scenery, a good serious side to cataloguing species and variety of habitats and an interesting collec- monitoring habitats because Angola, which tion of endemics, that is birds only found for many years was a no-go area for scien- there,” explained bird enthusiast and Afro- tists, is now putting a new emphasis on re- tropics specialist Nik Borrow. “It deserves to search and conservation. be up there with some of the other major Michael Mills, a South African, first vis- birding countries and, as word gets around ited Angola in 1993 and is currently in- about Angola, I think more and more bird- volved in several conservation projects, ers are going to want to visit.” including one at the sloped Kumbira Forest Borrow, a Briton who runs birding trips in Kwanza Sul and another at Angola’s high- across Africa, first visited Angola in 2005 est peak, Mount Moco in Huambo. and is due to return in October this year to Working with local and international lead a 17-day tour for BirdQuest, based in researchers, Mills is cataloguing bird life, Lancashire, UK, through eight provinces. assessing habitats, collecting specimens Gabela Akalat Monteiro’s Bush-shrike Although remembering some difficult lo- and helping on a nursery project for re- gistics and driving conditions from his first planting vegetation. visit, he is optimistic things have improved As well as creating a database, the Gabela Pulitzer’s Longbill since then. team is trying to conserve what is there by Bush-shrike “My overriding memory was that it was working with the local population to a very hard country to travel around,” he counter traditional but harmful practices told Universo. “But I believe there have such as logging and slash-and-burn farm- been substantial improvements, which is ing. “From the moment I first went to An- good. And it is definitely worth the effort to gola, I realised something needed to be see the birds and also take in the scenery. done urgently about bird conservation,” There are some very beautiful places: Tun- said Mills. “The Kumbira Forest is the most davala in is just stunning and the important location for bird life in Angola, Kalandula Falls in Malange are amazing. but it is under serious threat and so are the “Diversity is one of the real beauties of birds that live there.” Angola. It goes through the tip of the Congo Many people fled to the forest during

Deserves to be up there with some of the other major birding countries- more and more birders are going to “want to visit. 14 SONANGOL UNIVERSO ” MARCH 2011 15 BIRDLIFE ENTICES ECO-TOURISTS

the war and started to farm. This destroyed Bird conservationist protea-rich grasslands, enjoying a wet bird and other habitats, putting the long- Michael Mills summer and almost year-round mist, is a term future of the forest at risk, he said. perfect place for birds and the insects and Kumbira – known as a scarp forest be- grubs they feed upon. cause it is on a steep slope formed by ero- It is here that Borrow and his group will sion or faulting – is home to four species on be hoping to spot a number of Angolan en- the IUCN global-conservation concern list. demics, including the elusive Swierstra’s The threatened four include Monteiro’s Francolin, the Angola Slaty Flycatcher and a Bush-shrike, only found in Angola and local variety of the Yellow-bellied Waxbill Cameroon, and deemed “data deficient” known as Bocage’s Waxbill. because not enough is known about the However, like Kumbira, Mount Moco’s species to decide on its conservation status. birding habitats are also under threat as The other three are found only in An- people living nearby are increasingly cut- gola and the IUCN considers them at risk: ting down the trees for fuel and construc- the Gabela Bush-shrike, the Pulitzer’s Long- tion. “The forest is so small that even taking bill and the Gabela Akalat, which has not away just a few trees has a big impact, par- been seen for several years. This elusive ticularly as it leaves open spaces which are bird prefers the rapidly disappearing low- at bigger risk from bush-fires,” said Mills. lying vegetation in the Kumbira Forest. cioeconomic factors that may influence As in the case of Kumbira, Mill’s team is In September last year, Mills and his future conservation initiatives in the area. involved in a number of projects promoting team spent three weeks at Kumbira. Their Equally critical as Kumbira Forest is local community awareness about preserv- focus was on the four endangered birds and Mount Moco, Angola’s highest point, at ing the environment. “Some people there they studied their habitats, vegetation, dis- 2,620 metres. Located in , tell us that the forests will last for ever and tribution and numbers. They also spoke to at the heart of the country in an area known will never run out,” he said, “but others re- the local government administrator at as the central highlands, the slopes of Moco alise they are having to walk further each Conda about the possibility of using some are home to some of Angola’s largest re- year to collect firewood, and can see the land for a nature reserve, mapped nearby maining patches of Afromontane forest. stream nearby is running much lower at the communities and looked at some of the so- The mix of dense Miombo forest and end of the dry season because there is less

16 SONANGOL UNIVERSO MARCH 2011 17 BIRDLIFE ENTICES ECO-TOURISTS

Bird monitoring in the Infrastructure Mount Moco reserve improvements are unlocking Angola’s eco-tourism potential

visitors. That’s something that could really benefit the local population if it were done in the right way.” Much of Mills’ work is being done jointly with the Higher Education Institu- tion for Education and Sciences in Lubango, home to Africa’s third-largest bird-skin collection. A major project is the creation of an electronic database of the collection, which they hope to expand across the continent. “It’s not been easy,” said Mills. “You can imagine all the faded handwritten labels in different languages. It’s taken a lot of time Spectacular landscape to decipher the entries, but we have more provides varied habitats or less completed inputting. Now we are just tidying up and doing checks. “The idea is that we can make this in- formation available for everyone to use as a resource and we hope by taking these first steps we can attract more interest and more researchers to Angola.” For Nik Borrow, the fact that Angola’s records are still a work in progress adds to the thrill. “I get a major kick out of seeing these rarely-documented species. Going to places like Angola and Somalia, where I have just been, you feel you can actually water run-off from the trees.” lecting bird data and conserving habitats, significantly contribute to ornithological According to Mills, there’s a need to longer term he believes Mount Moco defi- knowledge, and that makes it really excit- find a balance for the community, which for nitely has potential for eco-tourism. ing,” he said. many years has relied on the natural envi- “Angola is a very diverse and beautiful ronment for survival but now needs to country,” he said. “But until now there have Bird conservation work in Angola depends on adapt to the changing reality. been problems with infrastructure and it financial support from organisations and indi- “It’s all about sustainability and that’s can be a very expensive destination. There viduals such as CGG Veritas, The A. P. Lev- what we are trying to communicate, to use is a lot of potential, particularly for expat entis Ornithological Research Institute, The these resources in a sustainable way so they tourism for the many foreign oil workers Rufford Small Grants Foundation, The Con- will last for future generations,” he said. who live in Luanda and might want to ex- servation Leadership Programme, The “We have given people more fuel-efficient plore the country on their weekends and Clancey Fund of the Percy Fitzpatrick Insti- stoves and are helping them find alterna- time off. tute of African Ornithology, Julian Francis, tive construction material.” “Mount Moco is only a few hours’ drive The International Turaco Society and The Although Mills’ focus for now is on col- from Huambo so there is scope for regular Conservation Fund of the African Bird Club

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Gabela Bush-shrike Gabela Akalat New nature conservation areas If you are interested in supporting further bird conservation work in Angola, in Angola to identify and protect impor- please contact Michael Mills tant areas such as those which haven’t on [email protected]. yet been developed or inhabited. Once Payment for photographs development starts, it’s much more dif- used in this article has been ficult to protect an area.” donated to the Kumbira and As part of his APAES work, this Mount Moco Projects. year Huntley will be travelling to a re- For more information on mote part of Lunda Norte, one of the projects and bird tours: target areas, for a mapping exercise. www.mountmoco.org “It’s a very important area,” he ex- www.birdsangola.org. plained. “It has the largest lake in An- www.birdquest.co.uk gola, white-water rivers, gallery forests www.birdlife.org and extensive woodlands, and the land- www.birdingafrica.com One of the fathers of Angolan ecology scapes are stunning and almost com- and conservation is Brian Huntley, a pletely devoid of human occupation. It The following birds are renowned conservation scientist who is in pristine condition, barely visited by endemic to Angola and many has worked across Africa and until re- humans and will be perfect for a na- are listed by International cently headed the South African Na- tional park.” Union for Conservation of tional Biodiversity Institute. The Lunda Norte team will be made Nature (IUCN) as endangered Huntley has played a major role in up of mostly Angolan students, hand- or critical. shaping environmental sensibility and picked by Huntley who is passionate research in Angola. His work includes about furthering homegrown scientific Grey-striped Francolin Francolinus griseostriatus the development plans for existing and research. new protected areas, as well as closely “For many years, perhaps as many Swierstra’s Francolin Local Knowledge Francolinus swierstrai examining wildlife populations in the as 30, there have been very few An- southern Namibian desert right up to golan scientists and very few who have Red-crested Turaco Tauraco erythrolophus Francisco Maiato is part of the new ral environment is fascinating and it lush rainforest in the north. studied their own environment, which generation of Angolan botanists. The offers an opportunity for bird watch- Huntley’s research has resulted in has led to some serious gaps in local Red-backed Mousebird Colius castanotus 28-year-old is working on various con- ing. “I really enjoy being there, talking 28 separate reports on the conservation knowledge” he said. “But I am quite en- servation projects across the country and working with the local population and management of biodiversity in An- couraged by a new generation of An- Gabela Akalat Sheppardia gabela including Mount Moco in Huambo and and being able to understand that al- gola, many of which serve as the basis golan graduates who are showing new Kumbira Forest in Kwanza Sul. though they perhaps comprehend lit- for mapping and current scientific re- enthusiasm for finding out more about Angola Cave-chat Xenocopsychus ansorgei A graduate in biology from the tle of what we are doing, they have a search. their own country. Science Faculty at great affection for the place and the Although officially retired, for the “Many have been lucky enough to Pulitzer’s Longbill Macrosphenus pulitzeri University, Maiato is based at the birds and they feel the need to protect past year Huntley, Emeritus Professor at have been educated abroad or have had herbarium of Higher Education Institu- them. the , has been the chance to travel – but they are cer- Angola Slaty Flycatcher Dioptrornis brunneus tion for Education and Sciences in “The work we are doing there is working with the Devel- tainly more willing to go into the bush to Lubango, where he also teaches. extremely important because it will opment Programme (UNDP), developing discover their own country.” White-fronted Wattle-eye Platysteira albifrons The institution is also home to An- help conserve this important ecosys- an environmental programme for An- In Huntley’s view, it is important gola’s 40,000-strong bird-skin collec- tem for the birds and classify Mount gola in partnership with the Angolan that Angolans become interested in Gabela Bush-shrike Laniarius amboimensis tion. Part of Maiato’s job is Moco as a priority area for bird con- government. their own environment because it will Francisco Maiato contributing to a new electronic data- servation in Angola.” A large part of this is about creating foster a greater sensibility in the future. Braun’s Bush-shrike Laniarius brauni base of plant specimens, to preserve also had an excellent opportunity of His favourite bird is Ludwig’s the Angolan Protected Area Expansion “There are several generations who records for future generations. training with some of the best botany Double-collared Sunbird, which is Strategy (APAES) to preserve critical for various reasons are not familiar with Monteiro’s Bush-shrike Malaconotus monteiri Originally from Huambo, Maiato specialists from South Africa.” endemic to Mount Moco. “This bird areas of natural interest. environmental sensibility, and until now said his love of nature came from his Maiato said he loved his time caught my attention for its beauty and There are 11 target areas, mainly there has been a lack of political will to Gabela Helmet-shrike Prionops gabela father who was an agronomist. “I have spent at Mount Moco and felt proud to the bright colours around its neck,” moist lowland, escarpment and mon- confront the issue.” always had a great fascination with be part of the work going on there. he said. “Although its status is tane forest systems, covering a total of He added that much work was re- Ludwig’s Double-collared Sunbird Cinnyris ludovicensis nature,” he said. “My father was cer- “Despite some difficulties, like the critical, you can still often see it at 11,800 square kilometres. quired to help Angola protect its valu- tainly a major motivation, but I have high altitude and the winds, the natu- Mount Moco.” Huntley told Universo: “There’s a able natural resources – but he said the Golden-backed Bishop Euplectes aureus very narrow window of opportunity left outlook is increasingly positive.

20 SONANGOL UNIVERSO MARCH 2011 21 A FURNITURE FACTORY’S REVIVAL

CLASS ACT Steam trains once puffed over Angola’s central highlands, fuelled by logs from specially planted eucalyptus forests. Now the steam age has passed but the wood has gained a new role as raw material for much-needed school furniture to serve new

i stock generations of pupils

22 SONANGOL UNIVERSO MARCH 2011 23 A FURNITURE FACTORY’S REVIVAL

uambo, perched high on An- project provides a new purpose for these gola’s central plateau, is home thousands of hectares of forestry. Forestry to a fledgling furniture industry HabiTec has 45 employees, including technology and Hnow playing a key role in furnishing local seven administrative staff. Manual jobs in- schools. Taking advantage of ample sup- clude sawing-machine operators, mechan- sustainabilty plies of eucalyptus trees, the furniture fac- ics and maintenance teams. Another 500 tory run by HabiTec Social Enterprise is workers on temporary contracts are em- HabiTec has not been content with now producing high-quality desks, chairs ployed during the year to assemble and dis- building a utilitarian factory for its and other wooden fittings to meet the tribute the factory’s output. school furniture. Instead it is adding needs of the country’s expanding school extra value by introducing new tech- system. Ambitious growth niques to upgrade the quality of the Around 80 per cent of Huambo’s According to Felisberto Capamba, timber it uses. schools along with their equipment and HabiTec’s managing director, installed Thanks to a technology transfer furniture were destroyed during the coun- capacity at the factory is 200 units a day of deal with a major South African eu- try’s long civil war, but since peace returned desks, chairs, chalkboards and other pieces calyptus timber company, HabiTec in 2002 there has been an exciting rebirth of educational furniture. is using a kiln-drying process that in educational provision with pupil num- The company has an arrangement produces hardwood with greater re- bers rocketing, handing HabiTec a huge with the Angolan government to produce sistance and durability for use in and urgent market for its products. school furniture worth about $30 million joinery, furniture manufacture and Angola’s eucalyptus forests stretch over the next five years for its schools-reha- construction. along its railroads and were originally cre- bilitation programme. This amounts to Following the example of the ated to supply wood to power steam loco- 40,000 units produced every six months. South African company’s long-run- motives in the absence of other local fuels. Many provincial governments and other ning sustainable forestry policy, Steam trains along the Benguela Railway state agencies have also shown interest in HabiTec has impressive green cre- crossing Huambo and central Angola HabiTec’s products and services, said Ca- dentials. The Angolan company in- ceased to run in the 1970s, effectively end- pamba. volves the local communities where ing mass timber consumption. In order to gain manufacturing know- it operates and has created its own A revamped Benguela line will reopen how, raise production standards as well as nurseries. It plants two new euca- in late 2012, but the wood-guzzling loco- efficiency, HabiTec has forged a partnership lyptus saplings for every piece of motives have been replaced by modern with a leading foreign eucalyptus furniture- furniture produced. diesel engines. maker. HabiTec also benefits from a Meanwhile, the abandoned eucalyptus The furniture-maker’s identity, with- partnership with Angola’s Forestry trees, left untended, have grown higher and held for competition reasons, has supplied Development Institute (IDF), which gained greater girths, enhancing their suit- and installed machinery at the HabiTec is also proactive in reforestation. ability for furniture-making. plant and also advises on personnel train- Andrade Moreira Bahu, head of Angola has 148,000 hectares of non- ing. The aim is for HabiTec to emulate that HabiTec has 45 employees, including IDF in Huambo province, announced native tree plantations, mainly eucalyptus, company’s successful production model in seven administrative staff. Manual jobs the planting of 100,000 saplings in with over a third of the total belonging to other countries. include sawing-machine operators, mechanics and maintenance teams the region between November 2010 the Benguela Railway Company. HabiTec’s The future looks bright for enterprises and February in 2011. The trees are eucalyptus, cedar and pine. The ATLANTIC saplings will not only replace forestry felled for a low economic OCEAN Catchiungo return such as charcoal, but also help reduce soil erosion. Benguela Kuito Huambo Forestry Alto project

0 50 100 km ANGOLA Provincial capital Benguela railway

Town, village Provincial boundary 0 50 mi i stock Capua

24 SONANGOL UNIVERSO MARCH 2011 25 A FURNITURE FACTORY’S REVIVAL

Educational provision is booming as Training key Angolans slake their thirst for learning. The The human element in projects such as number of pupils enrolled in schools more HabiTec is fundamental, so training is a than doubled to 5.74 million in 2008 from major ingredient in its success. In this area 2.56 million in 2002. the United Nations Development Pro- This figure is set to increase even more gramme has played a decisive role through sharply as Angola targets its programme of its subsidiary African Management Services Education for All by 2015, with an ambi- (AMSCO), which aims to make African tious benchmark of cutting the current rate companies globally competitive, profitable of illiteracy from more than 50 per cent to and sustainable. 16.5 per cent. AMSCO finances training at HabiTec to Minister of Education, Dr. Pinda the tune of $30,000 a year. It has strength- Simão, has said that to meet this need ened HabiTec’s personnel by identifying 30,000 new teachers were recruited in 2010 people showing enterprise and managerial to breathe new life into the school system, potential, and then training them. It has and a further 30,000 will be recruited this also supported the training of factory tech- year. HabiTec’s contribution will be helping nicians. to supply a more attractive and comfort- Felisberto Capamba led the initial able teaching and learning environment. process of creating HabiTec as a legally con- stituted company, drawing up the business We aim to Social enterprise plan and developing its administration. The HabiTec, founded in 1998, is a social enter- second step, he said, was appraising the improve productive prise aiming to contribute to the rebuilding market to see how the furnishing industry of Angola. would operate within it. Training has strengthened HabiTec’s potential capacity, focusing Parent company Development Work- This involved a deep understanding of shop (DW) is a highly respected non-gov- the state’s policy on rebuilding Angola’s in- on school furniture ernmental body active in Angolan social dustrial capacity. A further step was to ex- “ projects for 30 years. As international fund- amine the possibilities of obtaining local as the government ing ebbed after civil war ended, DW trans- and international finance for the company formed some of its projects into and to seek partnerships. has established commercially-based companies, managed “In getting involved in this process, I under the umbrella organisation HabiTec did it with great satisfaction because I was targets to improve Social Enterprise. prepared for the challenge,” said Capamba. The country faces the challenge of re- “Considering my training in administration the quality of building its social, physical and productive infrastructure. HabiTec has clearly identi- teaching fied the economic and social sectors where Felisberto Capamba its know-how can be most effective. Its fur- niture factory is just one area where the such as HabiTec in seeking to serve Angola’s company is engaged not only in creating educational sector. “We aim to improve jobs and replacing imports, but also in pro- productive capacity, focusing on school viding a growing population with access to furniture as the government has estab- basic services and educational opportuni- lished targets to improve” the quality of ties through investing in local productive teaching and reduce illiteracy. In order to capacity. do this, there needs to be physical school The government offers support to infrastructure – and quality school furni- HabiTec through credit lines granted ture is the basis of this programme,” said through the Angola Development Bank and Capamba. has also given incentives for local The government’s construction prior- industrial production. HabiTec’s ties with ities include rebuilding and equipping the public sector are also evident in its close thousands of war-damaged schools and it co-operation with Angola’s Ministry of Pub- has set aside $16 billion for education in its lic Administration, Employment and Social

2011 budget. Security, as well as municipal authorities. Capua

26 SONANGOL UNIVERSO MARCH 2011 27 A FURNITURE FACTORY’S REVIVAL

and company management, long provides settlement years working at DW, and the fact my planning, land registra- training was in part the fruit of the tion and land allocation services to policy and my career at DW, my com- provincial governments, addressing an mitment could be in no other way.” acute need for these services for millions of Angolans who were displaced during the Water project war years. Apart from schools, other social infrastruc- ture such as water supplies and housing were destroyed during the civil war. To Managing director repair this damage, HabiTec also meets equipment and expertise demands in these Felisberto Capamba key areas. The government’s Water for All HabiTec’s dynamic administrator, programme seeks to double the number of Huambo-born Felisberto Capamba, people with access to affordable water 38, developed a career in adminis- by 2015. It aims to build village and munic- tration as part of the team of vet- ipal water-supply systems as well as guar- eran NGO, Development Workshop. High technology helps meet demand antee sustainable maintenance to 80 “Today, the main task is to per cent of the country’s rural and consolidate the enterprise, peri-urban communities. strengthen partnerships, identify To go some way to meet government potential clients, reach targets and needs in this area, HabiTec also oversees a make our processes effective and water-sector project, HabiAgua, which efficient,” he said. aims to improve access to water by building Equally important, he added, is wells and selling water pumps, pump “to maintain the enter- spares and well-construction material. prise’s social vision HabiAgua also trains local communities in and contribute to the the management, operation and mainte- industrial development nance of their water-supply equipment. of the country”. Home help President José Eduardo dos Santos has made a commitment to build 1 million houses for social needs by making land, sites and services available for individual owners, and supplying hardware for low- cost construction. Complementing this

Capua policy, another HabiTec entity, HabiTerra,

28 SONANGOL UNIVERSO MARCH 2011 29 BANKS

ngola’s soaring economy has Analysis,” a report published by KPMG in uidity pressures caused by the global finan- been exciting the interest of December 2010. cial crisis. The country’s gross domestic foreign investors since peace KPMG noted that while the economy product (GDP) enjoyed an average annual Banking on returnedA some nine years ago. Nowhere is slowed during 2009, the banks had contin- growth rate of 16.9 per cent between 2004 this more in evidence than in the booming ued to enjoy substantial profitability with and 2008, peaking at over 23 per cent in banking sector. commercial assets increasing by nearly a 2007, but the fall in the price of oil, the Luanda, the capital, is now the third- third, deposits by 64 per cent and credit by country’s main export, led to the economy largest financial centre in Sub-Saharan 59 per cent. The report’s analysis of cost to flat-lining in 2009. Africa, after Johannesburg and Lagos. Host- income ratios also found Angolan banks to Angola’s future ing 20 commercial banks, compared to just be among the best in the world. Brighter outlook six in 1999, the metropolis currently has “Although this is a young sector, it’s Economic activity picked up in 2010, al- Angola’s financial sector has taken giant strides in recent years, around a further ten more banks awaiting amazing to watch how quickly it is evolving, though less than had been hoped. Govern- attracting foreign players and expanding services throughout the operating licences. both in terms of growth indicators and in ment growth forecasts were revised South Africa’s Standard Bank recently maturity of its regulatory framework,” said downwards for the year from an initial near country. Now it is eyeing opportunities further afield opened a branch in Luanda, becoming the Sikander Sattar, board director at KPMG 7 per cent to a more modest 2 to 4 per cent. first non-Portuguese foreign bank to offer Angola. However, the outlook for 2011 appears de- full banking services in Angola. The positive feeling around the sector cidedly brighter. Meanwhile, the first private equity comes as Angola picks itself up after a The London-based Economist Intelli- fund exclusively for Angolan investment tough two years of slowed growth and liq- gence Unit (EIU) expects Angola’s growth to has been launched and brokers are now outpace that of both South Africa and Nige- moving in ahead of the opening of Luanda’s ria in the coming years and for its GDP to stock exchange – Bolsa de Valores e Deriva- financial average a very healthy 7.4 per cent a year tivos de Angola (BVDA). between now and 2015. “It’s obvious that Domestically, banks have enjoyed sector will be growth is returning to Angola, and I believe strong growth with significant branch the financial sector will be a real motor for expansion. a real motor for that growth,” said Edward George, an EIU Electronic card payments rose by 88 growth senior economist, who sees Standard per cent between 2008 and 2009, “ Bank’s entry into the banking market as a according to the “Angolan Banking Sector Edward George, an EIU senior economist significant step for attracting more diversi- fied foreign investment into the country, particularly from South Africa. Pedro Pinto Coelho, chief executive at Standard Bank in Angola, certainly hopes this is the case. “Standard Bank is present ” in seven countries in Africa and seven countries outside of Africa. We know An- gola well and we know the difficulties many international investors have in understand- ing Angola,” he said. “What we’re trying to do is ensure that investors get to know An- gola better and have more confidence about investing there,” he added, acknowl- edging that there has been some hesitance due to negative publicity. Exchange start-up Meanwhile, with renewed hopes that the stock exchange may start operating in 2012, several brokers and asset management companies are setting up new offices in Luanda. Among them is Imara Securities An- gola, part of Imara Holdings, a Botswana-

Corbis listed investment-banking group with 

30 SONANGOL UNIVERSO MARCH 2011 31 BANKS BAI’s downtown HQ

Brazuk Ltd New banks add light to Luanda operations in several African countries and The other founding investors are the sources to be invested into Angola,” says ing more security for investments. GROSS DOMESTIC PRODUCT additional associations in the UK and European Investment Bank, the Danish In- We want to BPA chairman Carlos José da Silva, “and in- These include new anti-money laun- United Arab Emirates. dustrialisation Fund for Developing Coun- create pathways crease technical assistance to strengthen dering legislation, a new risk-management Anthony Lopes Pinto, Imara Securities tries and Angolan bank Banco Privado the international expansion of national department, plans to overhaul the coun- 18.5% 25.1% Angola managing director, is extremely Atlântico (BPA). Speaking as the fund pre- economic groups to help them act proac- try’s tax system and several other consoli- 9.5% buoyant about the country’s financial sec- pared for its Second Close, Laranjeiro said: for investment into tively overseas. dation programmes. tor potential and believes it could one day “So far, there has been great acceptance be- “We want to create pathways for in- Measures have also been introduced to 15.1% 19% even rival South Africa. cause the SME [small and medium enter- key areas of the vestment into key areas of the Angolan reduce the liquidity pressures felt in 2009 12.8% “We are in Angola pre-emptively with prise] sector was starving for this kind of “ economy and opportunities for partner- after the fall in the price of oil. These in- a view to broking on the stock market once institution which could help them out with Angolan economy ships for investment in electricity, energy, clude restricting foreign exchange transac- that opens,” he told Universo. “In the mean- long-term financing.” infrastructure and manufacturing. These tions above $100,000 (a fifth of the previous BAI (Banco Africano de Investimentos) and opportunities BFA (Banco Fomento Angola) time, we are focusing on corporate finance Also hoping to enter this new lucrative are all long-term sectors, vectors for the limit) and a new requirement for foreign oil BIC (Banco BIC) activities, acting as a broker for local com- asset market is Portugal’s Espírito Santo In- sustainability of the country.” companies to use local banks for their BPC (Banco de Poupança e Crédito) for partnerships BESA (Banco Espírito Santo Angola) panies in terms of raising capital and also vestment (ESI), which has applied for a li- transactions with subcontractors and staff, Others brokering acquisitions. These are simple cence to operate alongside its Angolan BPA chairman Carlos José da Silva Overseas expansion a move which some say could inject as transactions we can focus on until the cap- commercial banking subsidiary Banco Es- Carlos Rosado, an economist at the much as $10 million into the Angolan bank- ANGOLA GDP GROWTH ital markets get started.” pírito Santo Angola (BESA). Catholic University of Angola, agrees that ing system. Another key development for Angola’s “Our strategy is to be innovative and Building on its South African ambi- overseas expansion of Angolan banks is “This new legislation is going to signif- 25 financial sector is the launch of the Angola try to enter into new markets. We are the tions, BAI announced in December that it vital for the growth of the country and its fi- icantly increase the amount of transactions 23.3 Private Investment Fund (FIPA), run by only asset management company in the would be managing a $255 million credit nancial sector. “While the banking sector and actual assets being held in accounts in 20 20.6 fund management company Angola Capi- country right now and we are positioning line from the Development Bank of South- has benefited from the growth of the An- Angola, which I is going to be quite a big 18.6 ” 15 tal Partners. ourselves to be a broker company for when ern Africa and the African Development golan economy, I think it’s now important factor in contributing towards future The idea for the project came from the the stock exchange is launched,” said Bank. for Angolan banks to start looking beyond growth,” said Imara Securities Lopes Pinto. 13.0 10 state-owned Norwegian Investment Fund Manuel Reis, ESI managing director. The credit line, signed during Angolan Angola,” he said. Reflecting on the various changes for Developing Countries (Norfund). President José Eduardo dos Santos’s visit to “Some have started with Portugal and within the BNA during 2010, its newly ap- 5 “Norfund had been eyeing Angola for Investment call South Africa, was the first of its kind be- South Africa, but they should also be look- pointed governor José de Lima Massano (per cent) Annual growth 2.4 a while because it saw a lot of opportunities Reis echoed FIPA’s Laranjeiro in calling for tween the two countries and will finance ing at neighbouring countries such as told reporters in Luanda that reform would 0 in the country’s non-oil sector and business more ways to bring foreign direct invest- infrastructure and development projects. It Namibia because I think that the future for continue to dominate the year ahead, and 2005 2006 2007 2008 2009 opportunities for private equity opera- ment into Angola’s non-oil sector, espe- mirrors a model used by Angola and the Africa is regional integration, trading be- repeated a government pledge to reduce in- Source: Ministry of Finance, Ministry of Planning tions,” said FIPA’s managing director Tiago cially into areas such as infrastructure and China Development Bank. tween countries. If regional integration im- flation, which hit 16 per cent in November. Laranjeiro. industrial development. Another bank also spreading its wings proves it will create lots of opportunities for “The year 2011 will be demanding and ANGOLA BANKING SNAPSHOT Promoting the fund in partnership Bringing new direct foreign invest- is BPA. Despite opening only in 2006, BPA Angolan banks.” intense, but we have the commitment and with Norfund is Angola’s largest commer- ment into the economy is also firmly on the already has a branch in Portugal, dealings As Angola’s financial sector has grown collaboration,” he said. “Sustaining the na- Commercial banks 20 cial bank, Banco Africano de Investimentos agenda of Angolan banks. BAI has overseas in Brazil and China, and plans to launch in size, so too has its regulatory framework. tional economy means maintaining a Bank branches 720 (BAI). The two have made a joint commit- branches in Cape Verde and Portugal and operations in the United States by 2013. During 2010, several new laws and reforms sound, efficient and competitive financial Employees 11,000 ment of $15 million to the First Close, the recently opened a representative office “With a multi-geographical presence were brought in by the country’s central system, engaged and committed to the de- Net assets $4.3 billion initial round of a financing agreement in Johannesburg, the first Angolan bank to in various continents, we intend to increase bank, Banco Nacional de Angola (BNA), velopment and welfare aspirations of soci- valued at $28 million. do so. the capacity of attracting financial re- aimed at streamlining operations and offer- ety as a whole.” Source: Angolan Banking Association – 2010

32 SONANGOL UNIVERSO MARCH 2011 33 BANKS Money, money, money- it’s a growth business Banco Africano de Investimentos (BAI), Angola’s largest bank, is enjoying high levels of growth and profitability. Universo asked executive director Inokcelina dos Santos what lay behind BAI’s star performance

ou have won several the increase in the price of oil on interna- Banco Nacional de Angola has imple- prestigious international tional markets. This has enabled it to mented a number of measures to improve Yawards – what is it about stabilise its net international reserves (NIR) the performance and reduce the risk of the BAI that stands out? since the fall at the beginning of the 2009 fi- Angolan financial system. The main BAI’s reputation is based on its good nancial year. This stability has provided the measures that have had a direct impact on financial performance and the solidity of its government with room for manoeuvre in commercial banks in Angola were the funds, strategy and business model. Based order to meet its financial commitments reduction of obligatory reserves, new on these factors, the bank has managed to and has increased general liquidity. compulsory foreign-exchange exposure retain and strengthen its relationship with This situation has benefited the bank- limits, the approval of the Anti-Money strategic clients who have the greatest ing sector and led to an increase in the vol- Laundering and Terrorism Funding Law growth and have contributed most to the ume of bank deposits and to an increase in and the opening of the Central Risk Office. economic development of the country. the volume of credit granted. Accordingly, These measures required commercial and despite the fact that there are still some banks to be more cautious in the manage- BAI enjoyed a 66 per cent rise in net vestiges of the international financial crisis, ment of their liquidity, which resulted in profits between 2008 and 2009 – what the forecasts for a better year in 2010 are more sustainable growth and greater finan- was the main driver behind that? satisfactory. cial solidity. They had no negative effects on BAI has always adopted a conservative most commercial banks, which have stance in relation to its risk exposure and You were among the first Angolan continued to play the role of market We therefore, seek to create a permanent line of credit to fund projects in the indus- been managed in a very prudent and sus- banks to offer telephone and internet dynamisers and funders, in line with the It is inevitable presence in those markets with significant trial sector within the ambit of the Angolan tainable manner. This has enabled BAI to banking – has this been a success? programme for the development and commercial and financial relations with government’s growth plan for the sector. grow by 112 per cent in 2008 and 39 per Yes. BAI’s electronic banking services gave reconstruction of the country. that the banks Angola. This line of credit is expected to be guaran- cent in 2009, which reflects net profits of our clients an alternative form of access to teed by the government, and BAI will be the $166 million in 2008 and $231 million in banking services. These services, particu- Since being licensed in 1996, BAI is now must go public What is the main role of your investors’ access point to the funding. 2009. These results are sustained by BAI’s larly SMS [text messaging] banking, have Angola’s largest bank; do you continue Johannesburg office (as you are not excellent client portfolio, by its range of enabled BAI to be nearer to its clients as a to keep expanding within Angola? if we want an offering banking services there)? When the Angolan stock exchange products and by a business model adapted consequence of the major market penetra- BAI intends to retain its position as the “ The main role of the representative office in opens, will BAI be listing? to each business sector by a skilled bank tion achieved by mobile services. In 2010, market leader in Angola by offering prod- evolved and Johannesburg is the creation of platforms The growth rates expected for the Angolan staff. These factors have enabled the bank 15.18 per cent of BAI’s clients had access to ucts and financial solutions that stimulate from which to access the South African banking sector give us reason to believe to achieve a good financial performance electronic banking. The number of BAI the economic and social growth of all the transparent banking market, the identification of lines of credit that it is inevitable that the banks must go and increase banking income by 63 per clients using SMS banking increased from markets in which it does business. BAI will to fund new projects, the establishment of public if we want an evolved and transpar- cent in 2009. 0.34 per cent in 2008 to 9.43 per cent in also continue to support the government’s sector strategic partnerships with companies that ent banking sector. However, the opening 2010, while the number of users of internet efforts to diversify the economy. wish to invest in Angola, and also to be a of BAI’s share capital to the public does not Are you expecting such strong banking increased more than 311 per cent tional trade and foreign investment in and base for the training of bank staff and BAI’s have to coincide with the opening of a stock results for 2010? between 2008 and 2010. You have operations in Cape Verde and from Angola, by adapting its strategies to relations with corresponding banks. market. Nonetheless, BAI is certainly in a According to the IMF, Angolan GNP is Portugal, business in São Tomé and each market. BAI monitors the evolution of position to be listed on the stock market, expected to grow by 4 per cent in 2010 (2 There has been a lot of reform within Brazil and a representative office in the market, particularly in relation to coun- What will BAI’s role be in the DBSA which will enable it to expand its invest- per cent more than in 2009) while growth of the Angolan central bank in the past Johannesburg – do you have further tries such as China, the United States and credit line signed between Angola and ment-sourcing options, clearly benefiting 5.5 per cent is projected for 2011. Despite 18 months – how do you think this will plans for international expansion? the United Kingdom,” which, because of South Africa? its business. We also consider that listing the slowdown of the growth rate since 2009, impact the commercial banking sector BAI will continue to strengthen its ability to their commercial relations with Angola, DBSA together with a banking syndicate is the bank on the stock exchange will also the Angolan economy has benefited from in Angola? become a preferred conduit for interna- merit the bank’s particular attention. going to provide BAI with a $255 million increase its market credibility.

34 SONANGOL UNIVERSO MARCH 2011 35 Sonangol news briefing NEWS

Subsalt treasure hunt Raising the roof Palm-oil power Construction of the giant Angola Sonangol is exploring the idea of working with liquefied natural gas plant at , xploration of deepwater Italy’s Eni to jointly produce biodiesel in Northern Angola, is on track to start Angola. The proposed scheme aims to make subsalt blocks off the operations in early 2012. A major use of abandoned palm oil plantations by pro- Angola coast has begun, milestone was reached with the recent ducing fuel from the plants. Angola’s Oil Minis- E placing of a 930-ton roof on a huge ter, José Maria Botelho de Vasconcelos, said in says Sonangol’s business director storage tank with a capacity of January that the Ministry of Agriculture would Carlos Saturnino. 159,000 cubic metres. The tricky con- map areas of the country suitable for supplying Announcing the start-up as “an struction operation was achieved by the palm oil. using an inflatable balloon, which Many countries are increasingly adding historic landmark”, he said explo- gradually pushed the steel roof biodiesel to diesel in heavy vehicles, especially ration of the subsalt layer was upwards and into place. urban buses, to reduce pollution. Brazil, for different from normal offshore oil The LNG plant will eventually host example, also uses biodiesel for its large fleet four of the massive tanks, each with of railway locomotives. The biodiesel can often drilling and involved greater the capacity to fill a gas-tanker ship- be conveniently produced and used in remote investment and technical complexity. ment. The Angola LNG project, which rural areas a long way from oil refineries. will produce 5.2 million tons of liquid Biofuel has the further advantage of being a Subsalt is so named because Superleague gas a year, is jointly owned by Sonan- renewable, sustainable product and cuts the the oil deposits lie below a thick salt Superleague revs up gol (22.8%), Chevron Gulf Oil Com- use of fossil fuels. layer. A similar subsalt exploration pany (36.4%), and BP, Eni and Total Superleague Formula by Sonangol aims sponsors the league, leading soccer which each hold 13.6%. area on the opposite side of the to hold its motor races in venues further clubs lend their names to individual Atlantic in Brazil has been afield in 2011. Last year, it ran events be- driving teams. Cuban deals yond Europe with two in Beijing and The Anderlecht team, sponsored by Onwards and upwards revealed to hold huge oil deposits. Sonangol E.P. signed a produc- Inner Mongolia, China. The organisers the Belgian football club, narrowly beat tion-sharing agreement on December 8 Sonangol has acquired an interest in Escom, the dynamic property, construction, oil The oil is located between 2,000 now have venues in the Middle East, team Tottenham Hotspur, backed by the with Cuba’s Comercial Cupet for two off- and mining company. The Angolan oil giant purchased the stake in Escom from and 5,000 metres below the sea. Latin America and Australia in their English Premier League club, to win the shore blocks in the Gulf of Mexico. So- Portugal’s Grupo Espírito Santo (GES), one of the largest private investors in Angola. sights for this year’s 12-round, 36-race overall winners’ prize of €1million for nangol will operate blocks N23 and N33, Escom is involved in an ambitious building project alongside its existing 25-floor Oil companies selected to oper- competition. 2010. Superleague Formula will have the north of Pinar del Rio province. iconic building, Luanda’s tallest, which dominates the city skyline and overlooks ate some of the Angolan subsalt Superleague Formula races 750bhp same total prize money of €5 million on Sonangol already has partnerships Kinaxixi Square and the Miramar district. Escom’s project involves constructing three more tower blocks of a similar height. blocks include China Sonangol, BP, cars with V12 engines. While Sonangol offer to competitors in 2011 as last year. with Cuba in an onshore block in Angola as well as in Venezuela’s Orinoco region. Cobalt International Energy, Sonan- Superleague Formula by Sonangol – Fixtures 2011 In the Venezuelan enterprise, local state- gol Pesquisa & Produção, Repsol, oil concern PDVSA has 60% while Round Venue Date Sonangol and Comercial Cupet each Total E&P Angola, Eni Angola, Cono- 1 Monza Italy April 16/17 have 20%. The Venezuelan fields are ex- coPhillips and Statoil ASA. 2 Algarve Portugal May 7/8 pected to produce 94 million barrels of Meanwhile, Sonangol’s Starfish oil 3 Assen Holland June 4/5 oil over five years. 4 Nürburgring Germany June 18/19 exploration arm has begun gaining 5 Navarra Spain July 2/3 SonAir spreads subsalt experience in Brazil’s 6 Zolder Belgium July 16/17 wings Campos Basin off the coast of Rio 7 Donington UK August 6/7 Sonangol’s aviation arm SonAir has obtained certification to operate as an de Janeiro with its first drilling 8 Ordos China September 11/11 9 Beijing China September 17/18 airline in Angola from local licensing campaign. Starfish’s pioneering well, authority, National Institute of Civil 10 Non-European October Aviation (INAVIC). SonAir can now op- 1STAR19RJS, will drill down 5,625m 11 Non-European October erate anywhere in Angola and is only 12 Non-European November at a sea depth of 853m. the second company to gain the li-

cence, after national airline TAAG. Brazuk Ltd

36 SONANGOL UNIVERSO MARCH 2011 37 35th ANNIVERSARY

onangol subsidiaries and depart- ments across four continents held celebratory anniversary events Sranging from sports competitions to gala lunches. Global In Luanda, after the formal announce- ment of company results and the presenta- tion of a $50,000 cheque to the winner of the 2011 Sonangol Literature Prize, more than 5,000 staff members enjoyed a lunch events at the Talatona Cultural Centre. Managing director o Sonangol’s Lon- don operations, José Paiva, hosted a lunch for staff where traditional Angolan food was served. Later, guests were treated to theatri- mark cal and musical performances by artists from Angola and São Tomé and Príncipe, as well as a show of capoeira, the Angolan/Brazilian martial art. Back in Luanda, more than 120 people took part in a race from Ponto Final on the birthday Ilha, the long sand spit which shelters Lu- anda harbour, up to the front of Sonangol’s headquarters on Rainha Ginga Street. The winner of the men’s race was Alexandre João from Interclube who com- bash pleted the course in 25 minutes 58 seconds. Sonangol staff around the world joined He was followed by teammates Domingos Muholo (26 min 15 sec) and Lourenço An- together on February 25 to celebrate the tónio (26 min 18 sec). company’s 35th anniversary The women’s event was won by Joana Baptista, a member of Clube Ara da Gabela from Kwanza Sul, with a time of 34 minutes  Quimbaya

Sonangol Asia toasts the Off-road motor race company’s birthday celebrates Sonangol anniversary

38 SONANGOL UNIVERSO MARCH 2011 39 35th ANNIVERSARY “For 35 years our present for Angola is a better future”

55 seconds. Madalena Domingos from Primeiro de Agosto was runner-up clocking 36 minutes 53 seconds, and Isabel Vicente, from Cafanda FC do Bengo came third with a time of 38 minutes 15 seconds. In the staff race (which followed a shorter route from the naval base to Ponto Final on Ilha), Tomás Faria and Adelino Marcelo (both from logistics) took the top spots. Meanwhile, Rosa Mingas from the fi- nance directorate won the women’s race for the second year running, with Domingas de Miranda (refining) and Antónia Silva (P&P) coming second and third. During his presentation of the com- pany’s results, president Manuel Vicente stressed that Sonangol has an important social responsibility to the country. This was highlighted by a visit to patients at Lu- anda’s Psychiatric Hospital to make a dona- tion of various educational materials and foodstuffs. Antónia de Sousa, the hospital’s direc- tor, thanked Sonangol for its donation and said it would greatly help the 322 patients in its care. She said many of those it looked after were from low-income families who were unable to provide their sick relatives with financial support. Sonangol celebratory road race

London parties A Sonangol birthday present to a home for the elderly

At Sonangol USA, they blow out the candles

40 SONANGOL UNIVERSO Quimbaya MARCH 2011 41 35th ANNIVERSARY

Sonangol president Manuel Vicente expressed pride in the company’s achievements on its 35th anniversary and confidence in meeting the targets for 2015. Board The challenges ahead members also spoke of their hopes for the future.

Manuel Vicente: Mateus de Gaspar Baptista Sumbe Brito Martins “In the last 35 years the first great “All of us here today feel very proud for having taken part in “Sonangol has achieved “We all feel proud of achievement was the increase in all that we have achieved,” said Manuel Vicente. “Going a lot, particularly in its being part of a com- oil production. In fact, we went forward, the biggest challenge will be to maintain the stan- human resources, in- pany that has been from producing 300,000 barrels dards we have reached and to go on to even greater achieve- creased production and contributing to the de- per day – when I started working ments. We have completed the vision cycle up to 2010 and stronger organisation,” said velopment of this for the company – to close to two now we have set out our vision for 2015. Our challenge is to Mateus de Brito. “As far as country all this time,” million barrels nowadays,” said achieve those targets.” the challenges ahead are said Gaspar Martins. Baptista Sumbe. concerned, we have to “In terms of chal- “Also, we have the internationali- maintain this performance lenges, the first is to sation of Sonangol. Going beyond and do much better. comply with the new crude oil, we are also in the trading Sonangol also has a big in- vision for 2015, but side worldwide. We are in America, ternational portfolio. Right also to maintain this in Europe and in the Far East, now, we are drilling our first current level of achievement and maybe increase it. We are which is a great achievement.” well in Brazil. We are also moving from a company that was previously only involved in Another big achievement, he said, was the segregation of the core present in the United States oil, into oil and gas, and maybe in the future into other forms business of Sonangol into different business units so that results and at two fields in Iraq. We of energy. It is also important to maintain the credibility of can be maximised. hope that we will start to the company, especially as we are now going to operate “We have also seen a big increase in our contributions to the country. see some results from these outside Angola.” Our partnership with the government has been boosted so that we at the end of this year in can contribute more to the development of the country, helping to order to begin production reduce poverty and overall improve the living conditions of by 2015/2016.” Francisco Angolan people. de Lemos “The biggest challenge will be human resources. We need to invest “To have a company more in training people. The company has grown very quickly in a Fernando Roberto worth close to $25 bil- short space of time, and when you consider that it takes around 15 “Our job is to do the best for lion, to grow within years to train a good technician, we’ve not had time to catch up yet.” employees, the company and the oil and gas value the country and I, like all the chain, and to have members of the board of preserved the com- Anabela Fonseca Sonangol, am very satisfied pany’s status are the “I have been in Sonangol for with our achievements at this biggest achievements 14 years now and have seen 35th anniversary,” said that we have made so incredible growth in that time,” Fernando Roberto. far,” said Francisco said Anabela Fonseca. “I have worked for Sonangol de Lemos. “I came from the Ministry of since 1978 and I am very “The challenge is to Petroleum, and I feel I have satisfied with the company’s become a major na- grown up myself inside developments. Now we are tional oil company. Sonangol. In terms of perspec- entering into a new era and I The world is glob- tives or the future, they are believe that the big challenge will alised; no one can work alone, no country can be alone. So amazing. The refining project be to improve our competence we, as you can see, are redirecting our strategy and moving to- and the trading subsidiaries are and human resources in explo- wards more overseas projects. two things under my supervi- ration and development and in As many companies come into Angola, we will try to sion that I would really like to our management of the new conquer our own space overseas. That will be our challenge put in place in the next four

All photographs by Kamene Traca refinery and natural gas.” for the next 20 years.” to five years.”

42 SONANGOL UNIVERSO MARCH 2011 43 35th ANNIVERSARY

Sonangol’s solid showing in 2010 Manuel Vicente, Sonangol’s board president, announced another successful year’s performance with profits topping $3 billion, a fitting way to mark the company’s 35th anniversary on February 25

oday is a special day. We have Output of refined products also In spite of the been in existence for 35 saw a reduction of 20 per cent, in spite years, which is a milestone of the sale of refined products rising 4 impact of the Talong our great journey. Today we seek per cent as a result of the 10 per cent to clarify the company’s achievements increase in imports over the past year. world financial over the last year,” Manuel Vicente told “In terms of financial indicators, Sonangol’s annual press conference. we registered sales worth $21.9 billion crisis, Sonangol, In terms of operational perform- and had an EBITDA [earnings before ance, he said, Angola produced a total interest, taxes, depreciation and amor- retained its financial of 640,628,590 barrels of oil, represent- tisation] of $3.88 billion, and we are ing an average daily national output of hoping to have a net profit of approxi- record, saw a 1,755,146 barrels. As part of that mately $3 billion,” said Vicente. amount, Sonangol produced “I would like to repeat that these rise in profits 314,239,197 barrels. are provisional results which have not Vicente said that last year the av- yet been audited,” he cautioned. In and registered a erage price of a barrel of oil was $77.90. spite of the impact of the world finan- Angola’s liquefied petroleum gas out- cial crisis, Sonangol, retained its finan- moderate level put totalled around 6.89 million bar- cial record, saw a rise in profits and of debt rels, of which Sonangol produced registered a moderate level approximately 2.86 million barrels. of debt, he said. The company also produced Rates of return grew moderately * 1.481 million tonnes of refined prod- in relation to the previous year, re- SONANGOL 2010 KEY NUMBERS ucts and imported over 3 million maining in double digits. “We have $3 billion net profits tonnes, he revealed. recorded in these preliminary results $21.9 billion sales asset returns of 11.26 per cent and re- Ups and downs turns on our own capital of 20.63 per $77.90 average oil price Vicente noted that Angolan oil pro- cent, and invested capital returns of $8.6 billion payments to state duction last year fell compared to 15.41 per cent,” said Vicente. 1.75+ million barrels average daily 2009, with crude oil output declining 3 “Another obligation of the com- oil output (Angola) per cent and natural gas falling 8 per pany is its responsibility to the state. 640.6 million barrels – annual total cent. “But in terms of the revenues we The total amount made over to the oil output (Angola) are expecting, there will be no reduc- state was $8.3 billion, of which $1.7 bil- 314.2 million barrels – Sonangol’s part of total output tion [in 2010] thanks to rises in the lion was in oil taxes, and around $6.6 price of a barrel that we experienced,” billion from concession-holder rev- Manuel Vicente outlines the figures for 2010 he said. enues,” he added. * Provisional data. Source: Sonangol

44 SONANGOL UNIVERSO MARCH 2011 45 35th ANNIVERSARY TRAINS Face to face with the press Sonangol’s board members fielded a series of questions from journalists on subjects including human resources, oil production, refining and international investments. The first were taken by president Manuel Vicente

tuguese debt. But we are in the market. If it were a good deal, then we would buy it, but there is no direct intention just now to buy Portuguese debt. Members of the board meet the press There has been some talk about a part- nership with PetroSA, especially in rela- tion to the new refinery in Lobito. Can This is something that is up to the executive lieve overall brings negatives for the whole start writing my resignation letter. you clarify this? [the state]. We would actually like the mar- world. When you have political stability, The state has its concerns and priori- There have been conversations between ket price to increase, but, as you know, there are better consequences. We hope ties. An example of this is the national the two companies and we have signed var- where petrol and diesel are concerned, that the worst scenario does not happen, housing programme. The government be- ious memoranda of understanding. There there is a fixed-price system. Last year, the but on the other hand there are some gains lieves the critical mass is here within So- have been contacts, yes, and ideas ex- executive decided to reduce the subsidies to be had and there’s no doubt about that. nangol to develop this programme, so it has changed, but there are no concrete negoti- by 20 per cent. We are going to lobby to re- called upon us to put this in motion. ations with PetroSA. duce this further, but the decision remains Can you tell us more about the with the executive. If I were making the de- proposals for an Angolan sovereign Questions to Are there any plans to reduce fuel cision, I would do it right away, even today. wealth fund? Francisco de Lemos subsidies again in 2011 and therefore This is something that is being led by the Can you give details about Sonangol’s increase the price? Is it true that Sonangol is going to executive; it’s not for Sonangol to create a investments? explore for diamonds in Zimbabwe? sovereign wealth fund. This is for the state At this moment, Sonangol has total share- Sonangol is not exploring for diamonds in to do. As you know, there is a commission holdings worth around $20 billion. A sub- A big crisis Zimbabwe. But Sonangol has an associa- that is working on this and one of our col- stantial part of these investments are of a tion, a joint venture, with a Chinese com- leagues, Dr de Lemos, is part of this com- varied nature and more than half are held in the Middle East pany called China Sonangol, and it does mission. This week the executive created a in its subsidiaries. These investments, ex- There are concerns about the lack of These days it is not just a problem have diamond concessions in Zimbabwe. fund for electricity, but when it is going to cluding those in the oil sector, are made up qualified Angolan engineers in the unique to Angola; it is a problem the world overall brings create this oil fund I don’t know. It is a deci- of several components: some dividends, country – do you share these concerns over, as large numbers of young people are How do you think the Middle East crisis sion for the executive, not for Sonangol. some financing and some income from and what is your proposal for resolving not studying mathematics and sciences. negatives for the will affect the oil industry? loans etc. Overall these investments have the problem? What we need to do is to set up pro- “ Yesterday the market closed at $114 for a What are Sonangol’s plans in terms brought in close to $650 million. We congratulate the Order of Engineers for grammes to raise awareness and encourage whole world. When barrel of Brent Crude, and I saw a scenario of diversification? In Portugal, our principal investments raising this issue. This is a reality we experi- our young people to embrace maths and on a television news channel predicting a This company has a boss; that boss is the are in Millennium BCP and in Galp. In Galp, ence day in, day out, and we often find our- physics. We share the sentiment of the you have political barrel price rising to $220. I don’t know if state, which has an executive, and we are it is an indirect investment but in Millen- selves asking why our society is producing Order of Engineers and we would like to this is good for anyone. It must be said, here to serve the boss of the company. The nium the investment is direct. Last year, only lawyers and economists and not engi- work with them to address this gap. stability, there however, that at this moment there are company has firstly a social objective. It’s dividends from Millennium were 15 cents neers. We are already implementing meas- gains to be had, of course, but it is also a not up to me to analyse what we can do or per share in the first quarter and, if I am not ures to try to overcome this. At a company Is Sonangol buying any are better moment for reflection and it must be a per- what we cannot do. If the powers say “do it”, mistaken, closer to 19 cents during the sec- level we are creating several programmes to Portuguese debt? manent reflection. We don’t know when this then I do it because I have to. If I don’t do it, ond quarter. For that reason we had a sub- accelerate a resolution to this anxiety. No, Sonangol has never bought any Por- consequences will stop. A big crisis in the Middle East I be- then it is time for me to leave and I should stantial increase of investment income 46 SONANGOL UNIVERSO ” MARCH 2011 47 35th ANNIVERSARY

tion is supported by imported refined prod- where there have recently been some ucts – that is why we are continuing with production problems? the Sonaref project to construct a refinery This question is about the FPSO [floating in Lobito. production, storage and offloading vessel] This is quite a large investment and in Great Plutonio in Block 18. This FPSO has order to recruit some partners into the had operational problems that are quite scheme we have slowed things down considerable. We have been working with slightly. We also needed to look again at the the operator to find ways to minimise the basic engineering and to revise some costs problems in order to guarantee that opera- involved. But the project still continues. tions continue. At this moment it is produc- We believe that by May – if the ing at less than 50 per cent of capacity. programme we have set out is achieved – Repair work is ongoing and we believe the plans will go again to the Ministerial these problems will be resolved. It will close Council to be updated, and then we can in April, which is part of the planned phase start building work. The revision is aimed at of repairs, to enable us, by May or June, to reducing the costs involved in the project. get back to the production levels that the Prize money to launch cultural foundation operator BP said it would deliver. Questions to Gaspar Martins Questions to The winner of the twelfth Sonangol Literature Prize was guest from Millennium BCP, exclusively through decision to mandate Sonangol to develop a India’s Oil and Natural Gas Corporation Mateus de Brito of honour at the 35th anniversary celebrations in Luanda the distribution of dividends. substantial part of the national housing (ONGC) has expressed interest in buy- Sonangol has plans to internationalise Galp achieved profits of approximately programme. At this point it became neces- ing Exxon Mobil’s stake in Block 31 – its portfolio. Can you tell us about that? Cape Verdean writer and historian Plateau), by Marcelo Panguana from €250 million and has an average rate of div- sary for a total restructuring of Sonip for it can you give more details about this? I would like to start with Cuba where we João Lopes Filho, winner of this year’s . idends of 50 per cent. These are very long- to be prepared to manage the responsibility Several companies have shareholding have signed a contract with Cupet to ex- Sonangol Literature Prize, was The judging panel was made up term investments, so to know their final of building 130,000 homes around the stakes in Block 31, including Exxon Mobil, plore and develop two blocks in the Exclu- presented with a $50,000 cheque by of Corsino António Fortes and value one needs to know the accumulated country, including those for Sonangol em- but no decision has been taken about sive Economic Zone. They are the blocks board member Anabela Fonseca Cornélio Caley from Sonangol, dividends, which will be calculated at the ployees. whether these companies will stay as they N23 and N33. We are going to begin our during the company’s anniversary Manuel Muanza from the Angolan end of the year. In the case of GALP, when It is a big challenge and, as our presi- are, and Sonangol can use its right of refusal seismic activities at the end of April. commemorations. Union of Writers, Frederico Gustavo the investment was made five years ago the dent Manuel Vicente has already said, it is on the block and keep the existing share- Regarding Venezuela, a tripartite con- After thanking Sonangol for its dos Anjos from São Tomé and price of buying a share was around 4 cents. feasible to get it done within the deadlines holder structure. tract has also been signed between Sonan- support for literature, Lopes Filho an- Princípe, Francisco Conduto de Now each share is worth 15 cents, so you set. The only difference is that we need to It is clear that India could be interested gol, Cupet and PDVSA to develop and nounced that he would be using the Pinapela from -Bissau, Carlos can imagine the size of the financial poten- work harder and we need more resources and we need to make a decision to see what produce in two fields, Miga and Melones. prize money to set up a foundation to Paradona from Mozambique, and An- tial if Sonangol decided to sell its stake. because the allocation we have at the mo- advantages there could be. If it were just a These will deliver 20,000 barrels of oil a day promote culture and philanthropy in tónio Fernandes da Costa on behalf of ment is not enough to ensure good delivery. case of attributing the share to ONGC, then over a period of five years, and will have a his native Cape Verde. Later, he signed the Angolan Ministry of Culture. Sonangol has created a new it should be attributed, but there are pros final total production volume of 94 million copies of his book Percursos & Desti- Praising Sonangol for the initia- subsidiary to manage real estate – What is the value of Sonangol’s and cons. barrels. nos (Routes and Destinations), written tive, the panel said the prize was an can you give more details about this liabilities? Regarding Iraq, we have a contract to under the pseudonym Osagyeto “incentive for aesthetic creation and group and its functions? Sonangol has liabilities amounting to $11 When will there be a new bidding round develop and produce in two fields, Qayara Moisés, which tells the story of the scientific production, as well as an ex- Sonip was set up in 2009 as a result of the billion. This is made up of short-term treas- for oil blocks? and Najmah. We are currently in the pro- journey of Cape Verdean cultural and change of experiences” between the spring cleaning we carried out in the com- ury bonds worth slightly over $4 billion, On January 24 we made the announcement curement phase and also doing some seis- social development. cultures of the countries taking part. pany. We decided that the segmentation of and also long-term banking bonds that about the bidding for subsalt and offered 11 mic surveys and constructing a logistics The Sonangol literature competi- our assets and real estate could be directed have an average term of six years. These blocks for exploration. This process is at the base. We think that by the end of the year tion has been held a dozen times since differently to overcome deficiencies and long-term debts are worth approximately stage of final negotiations. I believe that by we will have some results from these fields. its creation in 1987. This year was the make improvements in their management. $7.4 billion. Our short-term liabilities are the end of 2011 we will have all the contrac- I would like to take this opportunity to first time writers from other Por- As you know, the housing problem is a na- the bonds that mature within a year and are tor groups set up, with the possibility to say that we are also in Brazil. We are cur- tuguese-speaking African countries tional one and Sonangol, which employs made up essentially of our tax obligations start exploration of this new geological level rently drilling and prospecting in the Cam- were invited to take part, prompting close to 5,000 members of staff, was also on the sales made during the month of De- which has been so productive in Brazil. We pos Basin and also prospecting in the submissions from Cape Verde, looking for a way to find solutions. In cember and in the first half of January. believe that with the similarities that exist Santos Basin. In addition, we also have a Mozambique, São Tomé and Príncipe, 2001/2 the housing co-operative Cajueiro between Brazil and Angola, we will also stake in the Gulf of Mexico. The only African and Guinea-Bissau. was set up. Sonangol needed to meet its ob- Questions to have positive results. The preliminary work company with operations in the United Honourable mentions went to ligations to find a solution to the housing Anabela Fonseca has been done; we are now just waiting to States. We have 11 concessions there Laço de Aço Lasso (Tie Steel Lasso), by problem and Sonip was set up primarily What is the situation with the planned begin the exploration work. and we are currently waiting for the Angolan writer Jordão Augusto Tra- based on these two fundamental ideas. refinery in Lobito? licence to start drilling and to be able jano, and Filho do Planalto (Son of the In May last year, the executive took the More than two-thirds of internal consump- What is the situation with Block 18 to prospect.

48 SONANGOL UNIVERSO MARCH 2011 49 SONANGOL: THE GLOBAL PICTURE

UK Sonangol UK is responsible for marketing and commercialisation of Sonangol’s oil and gas in the UK. London

USA Cuba Sonangol USA is responsible for market- Sonangol P&P is starting Portugal ing and commercialisation of Sonangol’s exploration in Cuba in two blocks, Lisbon Sonangol has invested in oil and gas in the United States. and hopes to start technical companies here including Millen- activity, principally seismic nium BCP and Amorim Energia. Iraq studies, by the end of April 2011.

Houston

Cape Verde Iraq Gulf of Havana Sonangol Cabo Verde Sonangol bought exploration rights Hong Kong Mexico for the Qayara and Najmah fields in northern Iraq in December 2009 and says it has received many offers Hong Kong Cape Verde from international companies for China Sonangol engages Gulf of Mexico development of the sites. in oil, gas and minerals Sonangol P&P, the first African oil investment and explo- company to be operating in the ration, crude oil trading Gulf of Mexico, is working with and large-scale national Cobalt Energy and Total. reconstruction projects. Singapore São Tomé and Príncipe With the headquarter Sonangol São Tomé and Príncipe is São office in Hong Kong, the currently working to develop the Tomé company also has branch islands’ airport and port. offices in China, Africa Soyo and Latin America. Offshore Luanda

Lobito Singapore Sonangol Asia is responsible for marketing and commercialisation of Sonangol’s oil and gas in the Asian market. Rio Angola Luanda – Sonangol headquarters. Base for Sonangol P&P, Brazil SonAir, Sonangol Logistica, Sonangol Distribuidora, Sonangol Sonangol plans to invest $1 billion in the next Shipping, Sonangol Investimentos Industriais Lda, Sonip, two years, working with Brazilian operator MSTelcom and Essa. Starfish. Soyo: Sonagás is involved with the Angola LNG project. Lobito: Sonaref is developing a new refinery. Offshore: Sonangol P&P has concessions and operational interests in various production and exploration blocks onshore and offshore and in deepwater and ultra deepwater.

50 SONANGOL UNIVERSO MARCH 2011 51