Luanda London E14 9RP Are Stimulating the Greater Interchange of Economic Activity Throughout United Kingdom Angola’S Potentially Rich Land
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SONANGOL UNIVERSO Uwww.universo-magazine.comniverso JUNE 2013 Opening the door to the future KWANZA SUL: Treasure chest province LOGISTICS: Faster freight flows JAPAN: Driving progress forward ISSUE 38 – INSIDE: JUNE oil and gas news 2 01 3 Zhangyang Universo is the international magazine of Sonangol Board Members Francisco de Lemos José Maria (President), Mateus de Brito, Anabela Fonseca, Sebastião Gaspar Martins, Fernando Roberto, Baptista Sumbe, Raquel Vunge Sonangol Department for Communication & Image Director João Rosa Santos Corporate Communications Assistants Nadiejda Santos, Lúcio Santos, Sarissari Diniz, José Mota, Beatriz Silva, Paula Almeida, Sandra Teixeira, Marta Sousa, Hélder Sirgado, Kimesso Kissoka Publisher: Sheila O’Callaghan Editor: John Kolodziejski Managing Editor: Mauro Perillo Art Director: Tony Hill Sub Editor: Ron Gribble Proofreading: Gail Nelson-Bonebrake Logistics come of age Production Manager: Matthew Alexander Production Assistant: Sebnem Brown Project Consultant: Nathalie MacCarthy assive investment, exciting growth projects with foreign partners and impressive advances in Angola’s industrial Group President: John Charles Gasser and agricultural industries are worth nothing unless the Universo is produced by Impact Media producers, manufacturers and farmers can get their goods Custom Publishing. The views expressed Mfrom point A to point B. in the publication are not necessarily those of Sonangol or the publishers. This is particularly true when it comes to moving imports and exports Reproduction in whole or in part without prior permission is prohibited. to and from the docks. The keys to success are joined-up thinking and an This magazine is distributed to a closed infrastructure which links the factories, farms and fisheries to the markets, circulation. To receive a free copy: [email protected] shops and seaports. Circulation: 17,000 Angola’s economic regeneration is reaching just such a stage in the area of logistics. More efficient ports and railways, better connected by improved road networks, are facilitating the flow of goods and services from industrial hubs and agribusinesses to towns and villages throughout the country. Davenport House 16 Pepper Street In this edition we examine how logistics systems developing in Luanda London E14 9RP are stimulating the greater interchange of economic activity throughout United Kingdom Angola’s potentially rich land. Tel + 44 20 7510 9595 Fax +44 20 7510 9596 The physical logistics network is now in place and the time has come [email protected] www.universo-magazine.com for it to fulfil its full potential. As a shining example, Universo throws the www.sonangol.co.ao spotlight on Kwanza Sul province, where some of the positive changes [email protected] mentioned above are rapidly coming to fruition. Cover: Eric Lafforgue John Kolodziejski Editor 2 SONANGOL UNIVERSO Contents 4 ANGOLA NEWS BRIEFING Millenium goals hit target; oil reserves head upwards; new finance minister named; coastal conservation plan; Soyo subsea systems plant; who’s WHO SeanPavonePhoto 6 ANGOLA-JAPAN: SIGNS OF THE RISING SUN How Japan contributes to Angola’s industrialisation and technology 6 14 KWANZA SUL: TREASURE CHEST PROVINCE Brazuk Kwanza Sul’s economy is driven by the offshore oil industry, but this rich land is also set to be a huge contributor to Angola’s food supply 24 CHANGING FACE OF MONEY Angola introduces new coins and notes to improve its currency security 26 LUANDA: BLENDING THE OLD AND THE NEW 14 The capital’s architecture is an eclectic mix of styles; we look at the Brazuk reasons why 34 SUPPLY CHAIN REACTION: FEEDING ANGOLA Creating sophisticated logistics systems is the next step once basic transport infrastructure is in place. We look at how this impacts freight flows, especially food 26 40 SONANGOL NEWS BRIEFING Sonangol No 2 in Africa; Pazflor prize; boost for Lobinave shipyard; Kizomba Satellites phase 2; new find in Block 15/06; Brazilian bid; pump prices held; Schlesser Sonangol triumph; Angola’s lead role in African refining 40 44 ANGOFLEX: REEL TIME GROWTH Skodonnell Angola’s burgeoning demand for umbilicals has led to expansion of its Lobito spool base 46 FAST LANE TO SUCCESS Sonangol subsidiary Cardlane celebrates 20 years of placing Angolan students in further education. We see how this is done 46 JUNE 2013 3 Angola news briefing Millennium goals reached ■ Angola reached its 2015 Millennium development goals well ahead of schedule in 2012. The country Nolte Lourens dramatically cut malnutrition cases by half between 1990 and last year. The welcome news was given by Mamadou Diallo of the United Nations Food and Agriculture Organisation (FAO). He said the Angolan government had been working hard, and as a result the country had made social, economic and environmental progress. “FAO is proud to accompany Angola in this battle and is convinced that this country will reach in a sustainable way all the Millennium development goals,” Diallo added. Oil reserves head Coastal conservation plan upwards Pal Teravagimov ■ Angola’s proven and probable oil reserves stand at 12.67 billion barrels, according to Oil Minister José Maria Botelho de Vasconcelos. The Minister revealed the figure while speaking at the Seventh German-African Energy Forum held in Hamburg in April. He said this included the new exploration frontier of the pre-salt region where discoveries had been made in blocks 21 and 23. Botelho de Vasconcelos said that when Angola gained independence in November 1975, the country produced around 175,000 barrels per day (bpd) compared to over 1.7 million today. The Minister said ■ The Angolan government has lent its support to a $10 million project to further protect the production was expected to reach 1.5 million hectare Iona National Park, a conservation area shared with neighbouring Namibia. 2 million bpd in 2014. In a new agreement, the Ministry of Environment will work with the Global Environment The priority for 2013-17 was to Facility, the European Union and the United Nations Development Programme to monitor the keep a balance between reserves and size and dynamics of plants and animals and ward off the threats they face. Poaching is one production through tendering blocks, problem for wildlife. applying new oil exploration and Iona’s unique ecosystems include springbok, ostriches, oryx, zebras and some unique production technologies, and completing plants, including the Welwitchia mirabilis Angola’s national symbol. development projects such as the The project also aims to support the 15,000 people who live in the park, most of them Kizomba Satellites in Block 15. pastoral nomads known as the Muhimba. 4 SONANGOL UNIVERSO Angola news briefing Soyo subsea New finance minister systems plant named ■ GE-GLS Oil & Gás Angola is investing $175 million over the next two years in an ■ President José Eduardo dos Santos undersea systems factory at Song-Etona in Soyo, Zaire province. appointed Armando Manuel as Minister The plant will be built at the Kwanda logistics base and will manufacture components of Finance in May. A presidential such as wellheads, valves, flow meters and instruments for the oil and gas industry in advisor, Manuel was formerly head of the region. Angola’s $5 billion sovereign wealth The enterprise will create 400 jobs during the construction phase and 180 when fund. He replaces Carlos Alberto Lopes. operations start up. Edgar Lopes, project manager for GE-GLS, said that construction would begin once licences were granted. Completion is scheduled for 2015. Photoatelier Who’s WHO ■ Angola was appointed vice-president at the 66th World Health Assembly of the World Health Organisation (WHO) in Geneva in May. Angola represents Africa at the WHO. The event was run under the slogan ‘Ensuring health in the context of implementation of global development goals’. The Angolan delegation was led by Health Minister José Van-Dúnem, who told the assembly that the health situation in Africa had significantly improved over the last decade. He pointed to a fall in infant mortality from 159 per 1,000 live births in the year 2000 to 109 in 2010. The minister stressed that the African region had made an effort and recorded improvements to maternal health, although still far from reaching the Millennium development goals. FIGURED OUT Angola in numbers $350 million 2,500 tonnes investments in restructuring the port of Luanda lift power of Africa’s largest crane located in Angola $9 billion global investment in Angola’s Pazflor deep-sea project 4,500 containers $850 million on largest vessels now docking in Luanda investment in revamping Angola’s textile industry JUNE 2013 5 ANGOLA-JAPAN: SIGNS OF THE RISING SUN Japan’s economic relations with Angola and Africa in general have historically been rather underplayed compared to those of other major business partners. Universo sheds some light on major Japanese projects about to make an impact on the Angolan economy 6 SONANGOL UNIVERSO SeanPavonePhoto INTERNATIONAL JUNE 2013 7 INTERNATIONAL he most obvious evidence of unsung Japanese success story in Angola demand for raw cotton could create up to Japan’s economic presence with makers such as Sony, Panasonic, 120,000 farm jobs. in Angola is on the streets. Toshiba, JVC and Sharp supplying many Angola’s textile industry has a long Japanese-made vehicles are so of Angola’s flat-screen TVs, computers and history and was once of great importance. Tnumerous and so common a sight that the personal stereo systems. It developed on a large scale in the 1930s, connection to the Far Eastern economy is based on ample local production of cotton, often overlooked. Industrial projects which reached 37,000 tonnes in 1974, and Luanda’s iconic blue-and-white One of Japan’s major strengths around exports peaked at just over 35,000 tonnes Toyota HiAce minibuses are at the heart the world is in developing sophisticated, in 1970. of most traffic jams in the car-besieged large-scale industrial projects.