ISSUE 5 SPRING 2005 universoSONANGOL ANGOLA | OIL | BUSINESS | CULTURE

COMMUNICATING SUCCESS Projecting Sonangol to its global and local markets DESIDÉRIO COSTA REMEMBERS Exclusive conversation with the minister of oil CHIC WITH ATTITUDE Angola’s fashion scene is alive with vibrant influences

ISSUE 5 SPRING 2005 INSIDE SONANGOL S

T SONANGOL Innovation is at the core of Sonangol philosophy – as Editor’s Letter universo ANGOLA | OIL | BUSINESS | CULTURE exemplified by another novel concept. TradeJango, an all-embrac-

8. Communicating Success For 25 years Sonangol’s strik- COMMUNICATINGCOMMUNICATING SUCCESS ing online marketplace, offers an opportunity to the whole N Projecting Sonangol to its global aandnd local markets DESIDÉRIODESIDÉRIO A multi-faceted programme designed to involve its ing logo has been as familiar an COSTACOSTA REMEMBERS Exclusive Angolan oil industry to make faster and more cost-effective pur- conversation with the minister of oil CHIC WITH ATTITUDE E image to Angolans as majestic Serra Angola’s fashion scene is alive chasing decisions. staff and refocus its communications policy is at the with vibrant influences de Leba. Now, along with the com- But whatever is new in the world, the implications of ener-

T heart of Sonangol’s drive to project the company to pany’s whole visual style, it is being gy stability and availability are ever with us, as we reveal in a its markets and wider public in Angola. given a crisper, contemporary look, review of the highly-acclaimed World Energy Outlook 2004.

N while still retaining its essential image We also put the spotlight on two men who encapsulate the of quality – just part of a wider spirit of Angola: the minister of oil, His Excellency Desidério approach to refocus Sonangol’s com- Costa, who gives us an exclusive glimpse into the future – and the

O munications policy towards its staff and the public at large. blind runner, Jose Sayovo, who chalked-up three golds in the Communications in another form are also featured in this Athens Paralympics.

C 14. Desidério Costa issue. In 1997, the need for reliable voice and data transmission Finally, at this season our thoughts turn to the balmy days remembers… led Sonangol to establish its own satellite-based network, of summer, to relaxation – and coping with the heat. Angolans, In this exclusive conversation with MSTelcom. This hi-tech service has now been opened up to the and especially Luandans, are well blessed with opportunities to do whole country, for the first time reaching out to many of the far- this, with mouth-watering beverages, spectacular surfing beaches – Universo, minister of oil, His Excel- flung rural areas. and the endless attractions of the capital’s famous Ilha do Cabo. lency Desidério Costa, casts back to the early days before Block 0 was “Block 0” – and takes a glimpse into the future INSIDE ANGOLA

Sonangol 32. Soyo Seed of Hope 46. Chic with Attitude Rua 1° Congresso do MPLA, Rich in heritage and the wealth created by its offshore oil industry, Alive with ideas inspired by foreign TV N.º 8-16 Caixa Postal 1316, Luanda Angola’s poorest province pins its hopes for a brighter future on the programmes and magazines, Angola’s República de Angola building of Angola’s first LNG plant. youthful fashion scene is becoming Tel: +244 2 391 182 16. Online Fax: +244 2 391 782 increasingly aware of the vibrant Telex: 2089 SONANG AN Marketplace influences closer to home. [email protected] Couched though it may be in the 36. Brewing Healthy Profits Sonangol USA (Sonusa) buzzwords of marketing-speak, It may be Angola’s favourite beverage to enjoy in 1177 Enclave Parkway the innovative marketplace creat- Second Floor moments of relaxation, but beer is also proving Houston,TX 77077 ed for Angola’s oil industry offers USA to be a healthy stimulant to jobs. Tel: +1 281 920 7600 fast track routes to purchasing Fax: +1 281 920 7666 efficiency and cost saving. [email protected]

Sonangol UK Merevale House 40. Life’s a Beach Brompton Place London SW3 1QE 24. More Than Luanda’s antidote to the long 50. Blind Courage United Kingdom hot Angolan summer is a beach Propelled to the top of the international Tel: +44 207 838 4600 Enough Fax: +44 207 589 9454 20. Dish Connected World Energy Outlook culture that is determined to sporting ladder despite – or, in fact, Telex: 893212 SONANG Reaching for the phone to make a 2004 strikes a positive rival even Brazil’s legendary because of – being maimed by a landmine, social or business call is something Sonangol Asia note. In this review of Copacabana for hedonism, Angolan Paralympics victor Jose Sayovo is 3 Temasek Avenue most people take for granted, but 31-04 Centennial Tower the International Energy vibrancy and laid-back lifestyle. an inspiration for all Angola’s disabled. in many parts of Angola, until now Singapore 039190 Agency’s flagship publi- Tel: : +65 64 16 3583 this has not been an option. Fax: +65 64 16 3582 cation, Universo Sonangol Department for Communication & Image –– Director: João Rosa Santos; Public & Press Relations Assistant: Cristina de Novaes highlights the implica- This magazine is produced for Sonangol by Impact Media Global Ltd, 53 Chandos Place, London WC2N 4HS, UK, Tel: +44 20 7812 6400~ Fax: +44 20 7812 6413 tions for oil – and for Publisher: John Charles Gasser; Vice President: Sheila O’Callaghan; Editorial Director: Christophe Illemassene; Editor: Peter Moeller; Sub-editor: Ron Gribble; Art Director: Lisa Pampillonia; Advertising Design: Bernd Wojtczack; Circulation Manager: Tony Adkins; Contributors: Bruce McMichael, Nicola Simmonds Angola’s oil and gas Cover Photo: Steve Chenn / Corbis industry in particular. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior permission in writing from the publishers. [email protected]

4 SONANGOL UNIVERSO news in brief

Subsea 7 boosts Angola and Algeria get closer Pride Africa returns local skills A closer working relationship between Angola and Algeria is blossoming following the recent meeting South African ship repair contractor Globe Engineering has in Luanda between Angola’s oil minister Desidério Costa and Algeria’s mining and energy minister Chakib completed the dry docking of drill ship Pride Africa, allowing the International underwater con- Khelil. The ministers signed a wide-ranging co-operation agreement covering oil and gas operations from vessel to return to its station in deep waters offshore Angola. tractor Subsea 7 has been exploration and production to gas flaring and LNG production. Owned by US drilling company Pride International, the ves- awarded a major contract offshore The accord will boost co-operation between the two countries and help to establish a partnership in sel is contracted for French oil major Total for a long-term Angola by Cabinda Gulf Oil the blocks and areas where they have a common interest in upstream activity. Executives from Sonangol deepwater drilling programme off Angola and was in Cape Company, part of the US-based oil and Algeria’s state oil company Sonatrach are focusing on gas production, refining technology and technical Town for a scheduled inspection. major ChevronTexaco. By using a training as key areas of mutual collaboration. “The ship was in for its major five-year inspection and had high level of Angolan content, The north African state has the largest reserves of gas (146.5 trillion cu.ft) and the third largest oil its hull recoated and thrusters replaced,” says David Bottomley, Subsea 7 is fulfiling a leading aim of reserves (15.4 billion barrels) in Africa. As the world’s first LNG exporter, and now second largest in the an executive with Cape Town-based Toprope, the service com- the government to boost local world, Algeria and Sonatrach have a wealth of knowledge that can be shared with Angola. pany contracted to work on the drill ship. engineering skill levels. Sonatrach has extensive experience in a range of projects similar to those Sonangol is developing, The vessel underwent a significant amount of work including structural modification of the drilling The $270 million EPIC (engi- including the Sanha gas and condensate project at Cabinda, an LNG plant south of the Zaire River, a gas derrick and fine tuning of its motion compensators. neering, procurement, installation pipeline to Luanda and a gas-fired power plant in the capital. Pride Africa is undertaking an extensive development drilling on the block 17, on behalf of the and commissioning) contract cov- French field operator Total, having also worked on West Africa’s first deepwater oil project at Girassol ers the development of the block and Total’s major developments in block 17 – Rosa and Dalia. 14 Lobito and Tomboco fields, Later this year the vessel’s sister ship Pride Angola is booked into Globe Engineering’s Cape Town offshore Cabinda province. Work docks for its own scheduled five-year inspection. Offshore Angola, Total operates the blocks 3 and 32 in is scheduled to finish in 2006. addition to block 17 and the onshore blocks FST and FS. The group is also a partner in blocks 0, 2, 14, The huge project involves 31 and 33. connecting three subsea well hubs, located 10 km from the Benguela- Belize production platform. Subsea BP in deep water Major contract for Ocean Rig 7 will fabricate and install steel Two of Angola’s deepwater blocks could Ocean Rig, the Stavanger, Norway-based pipelines, flowline jumpers, con- soon play host to a group of FPSOs (floating, drilling company, has won a major contract from nectors and umbilicals and install production, storage and offloading) vessels US-based oil supermajor ExxonMobil for its Leiv specialist manifolds and distribution operated by British supermajor BP on its blocks Eiriksson drilling rig to work offshore Angola. The rig units. While working offshore, 18 and 31. will drill one, possibly two exploration wells later Subsea 7 will use its multi-purpose BP is actively planning a major increase in this year in block 33. Each well is programmed to pipelay vessel Skandi Navica and a offshore activity following a series of spectacular last between 30 and 45 days. The rig is currently support vessel. discoveries including Saturno, Mars, Plutao and working for BP in block 31. David Cassie, Subsea 7’s sen- Venus fields on block 31. One FPSO could be Ocean Rig owns and operates two of the ior vice president of global used on block 18 to exploit the Chumbo, Cesio world’s largest and most modern drilling-rigs built to business acquisition, says: “As ChevronTexaco is hopeful and Platina discoveries, while up to three FPSOs operate in ultra deep waters and extreme weather Angola is one of the biggest sub- Angolans living in the northern port town of ExxonMobil created some 400 local jobs through could be positioned on block 31. BP’s partners conditions. While Leiv Eiriksson is operating off- sea markets in the world, Soyo are hoping that the proposed LNG plant will its construction and fabrication contracts for its $3 in block 31 are Royal Dutch/Shell. shore Angola, a sister vessel is working offshore establishing ourselves there has bring jobs and prosperity to the region. The $5 bil- billion Kizomba A project in block 15. However, The British supermajor is already very Norway. been one of our prime strategic lion, 5 million tonnes per year facility will play a Soyo’s 106,000 inhabitants would welcome the committed to offshore Angola and this latest Ocean Rig’s ambition to be a objectives.” major role in the government’s plan to halt flaring permanent presence of a major industrial plant expansion will propel the group into a leading significant presence in deepwater The steel flowlines are being of associated gas from offshore oilfields. offering a large number of permanent jobs and role in the country’s oil and gas industry. drilling has seen it win a number fabricated at a newly built factory The partners in the LNG project, led by steady income for the region. Following development approval from Sonangol, of prestigious contracts offshore in Luanda. As the civil engineering Sonangol and US supermajor ChevronTexaco, are During the start-up phase of the plant around first oil is likely to flow from this block in late Angola including the successful expertise and facilities increase in considering a number of options and are hopeful 8,500 workers would be employed, including many 2008, early 2009. completion of 12 wells for Angola, particularly around the that FEED (front-end engineering and design) work Soyo residents who would be given the necessary BP has been present in Angola since the ExxonMobil, BP, ChevronTexaco dock and harbour side in Luanda, will start early this year. training to fulfil a range of technical jobs. Offshore early 1970s and has actively employed new and Total. The Leiv Eiriksson has Subsea 7 is increasingly able to Soyo is already a major logistics hub for the oil production in Soyo accounts for around 30 per technology to access deepwater finds – for successfully completed drilling fabricate pipelines using a range of region and has often been used by oil companies cent, or one million barrels per day, of Angola’s oil example in block 31, where water depths vary operations in waters of 2,040 local contractors. for short-term construction projects, such as when production. between 1,400 metres and 2,700 metres. metres depth.

6 SONANGOL UNIVERSO SPRING 2005 7 restructuring communicating

SA multi-faceteduccess programme designed to involve its staff and refocus its communications policy is at the heart of Sonangol’s drive to project the company to its markets and wider public in Angola.

n August 2004, CEO Manuel Vicente introduced plans for the complete restructuring of Sonangol, a process already begun in 1998. “We have to have a modern, efficient, Itransparent structure to compete successfully on the world market,” he explained. “The changes are good for Sonangol and good for Angola.” A sophisticated and accessible communications system that addresses internal needs as well as those of the media and other outside bodies is essential to meet this goal. As João Rosa Santos, director of group communications and image, puts it: “We have the firm intention of revolutionising our communications. We see this as a very important tool from the strategic point of view, and consider information and commu- nication as synonymous with success in any organisation.” The climate in the company was very different three years ago when the board deliberated on the best way to work towards these goals: The dissemination of informa- tion was largely the remit of individual departments in each of the major subsidiaries, and was often done in an ad hoc fashion with little awareness of the overall picture for the company. The vehicle that was created to diagnose the real status of communication within the Sonangol group, and define the way by which its objectives could be achieved, is “We have the MIMCO – standing for Marca, Imagem, Marketing e Communicacão (brand, image, firm intention of marketing and communication). revolutionising our The project team, co-ordinated by Mr Santos, took two years to carefully analyse communications. the situation before presenting their conclusions. At the heart of their deliberations lay We see this as a the concept that no amount of public relations hype or sponsorship handouts would be worth a Kwanza if the company was not addressing the market with professionalism very important and an enthusiastic belief in its products and services. tool from the “Communication can’t be improvised,” says Mr Santos. “It has to be the result of strategic point of the real objectives and goals of the company and each of its activities. If the company is view, and consider not efficient, our identity inevitably ends up by becoming diminished. information and “Communication is not just a corporate function, but a responsibility of each communication member of the company. It is a barometer that allows us to see what the public inside and outside is thinking,” he adds. as synonymous As Sonangol is a single corporate unit, the first task has been to rationalise overall with success in any communications to follow a uniform strategy as the basis for the implementation, in organisation.” 2005, of a new, broadly based communications structure. Mr Santos sees this as having two elements: an internal programme is designed to João Rosa Santos, Director of keep every part of the company informed of objectives and achievements and to moti- Group Communications and vate a positive staff attitude to the outside world. In parallel with this, a department B Image, Sonangol R I A

N dealing with external communications is equipped to cover every sphere of Sonangol’s

S T A U F F E R SPRING 2005 9 “We wanted to interests: its markets, clients, supporters, gov- addressed to the staff, Universo, in English, is address the ernment, the media, and corporate entities the voice of Sonangol to the oil sector – and we dynamics of the both locally and on a world basis. also have Sonangol, a monthly magazine Overarching all these aspects, and to which circulates nationally.” Through these international address the historical problems of the previous three vehicles there is a balance of readership market while fragmentation of the Sonangol message, a to project information accurately to the right giving greater redesign of the corporate image was also seen target audience. balance and as necessary – both to give cohesion to the But in a more radical initiative, aimed visibility to the Sonangol brand as a whole, to convey a per- specifically at staff, Sonangol’s Sonangol brand. vading quality image and also, importantly, to Communication and Image Department is counter piracy and passing off, which are creating no less than its own television net- Sonangol is one themselves damaging to the company’s opera- work, which will eventually reach every corner whole, and its tions. of the company. identity should be In view of its central position in the “We believe that Sonangol TV, due to start perceived in the Angolan economy, Sonangol already has broadcasting experimentally later this year, strong outside contacts – so all staff members, will enable us to communicate much more NEW LOOK: same way in all This artist’s impres- suitably informed and motivated are regarded actively,” reveals Mr Santos. “For example, we subsidiaries, and in sion shows how as valuable aids to the communicating can let people know in real time when a board Sonangol’s restyled all our lines of process. of directors is meeting.” visual image could business.” “We are trying to create efficient systems, Under this exciting project, broadcasts focus the attention both internally and externally to get informa- will eventually be made daily, with teams of air travellers and give a bright touch João Rosa Santos, tion where it needs to go,” comments Mr preparing programmes, conducting interviews to the mundane Director of Group Santos. “So, for example we have now devel- and generally providing a picture of day-to- shape of a storage Communications and Image, oped three separate publications in place of all day events in different parts of the tank. Sonangol those we had a year ago. Ngol Noticias is organisation.

fied to soften its rectangular look with a shape that reflects strong mobility, while giving an altogether New Image of Quality more user-friendly impression. To emphasise corporate unity, and to combat the increasing pirating and passing-off of the brand, an exclusive font was also designed. Sharp-eyed Angolans may have already noticed a change At the same time, the many environments in which the new logo appears: stationery, personal visit- in Sonangol’s familiar “S” logo. With its 29th anniversary ing cards, labels, notices and so on, have now acquired a smarter, contemporary style to give a crisp falling in February 2005, the Sonangol board felt the time was new impact to the company’s image. The new treatment of Sonair’s livery is especially eye-catching. ripe to rejuvenate the company’s visual identity – to modernise Having finalised the brief, Sonangol commissioned the experienced image design specialists Pos it, but without loosing contact with embedded values. This new design is a major sprucing-up of Sonangol’s Imagem Design of Rio de Janiero, produced highly successful new styles for Brazilian enterprises. image which reflects the corporate restructuring now taking During the ensuing evolutionary period, the MIMCO team closely monitored the design process and, place, especially in communications and marketing strategy, in with the finalisation of the initial stage of the project, the new face of Sonangol will begin to emerge. which one of the priorities is to strengthen the bonds between Sweeping away outdated stationery and redesigning advertising and marketing materials is the com- the subsidiaries to forge a single entity. paratively easy part. The work and planning involved with the repainting of company vehicles, the The preliminary preparation work was handled in-house as part of the MIMCO project. The first task signage on storage tanks and structures, the liveries of Sonair’s aircraft and a host of other items, is an was to identify the requirements and to create a comprehensive manual of visual identity as a brief for the altogether more complex and costly exercise. specialist design consultants. This has to be carried out meticulously according to the stipulations laid down in the master style So often organisations throw away much of the value accumulated over decades by revamping an “bible” as approved by the Sonangol board – and one of the biggest operations will be the facelifts for icon that is held in affection and regarded as a seal of quality by customers and clients. While Sonangol filling stations throughout Angola – possibly the most ubiquitous and visible examples of the Sonangol does indeed have modernisation and innovation at its heart, its Department of Communications and brand. Image did not fall into this trap. Initially only new outlets will incorporate the new image and styling, which will then be introduced to “We wanted to address the dynamics of the international market while giving greater balance and existing stations as they are remodelled. The whole operation will take time, at a cost of around several visibility to the Sonangol brand,” explains director of communications and image, João Santos. “Sonangol is one whole, and its identity should be perceived in the same way in all subsidiaries, and in million dollars. all our lines of business.” “I cannot give a precise figure,” confesses Mr Santos. “The implementation of the changes will be a Indeed, the striking logo has kept the same colours and the same style, but has been skillfully modi- function of the action plan for individual businesses.”

10 SONANGOL UNIVERSO SPRING 2005 11 “The content and images will be produced adds. “We have nothing to hide – and much to within the company, by my department,” communicate.” explains Mr Santos. “Filming and the actual To this end, Sonangol’s communications production will be done by specialists who we executives are pro-active in seeking to build João employ.” relationships with editors and specialist writers The experimental phase is due to start to present the company’s news, as well as to before the end of the year – first at Sonangol carefully manage requests by journalists for Rosa Headquarters – before spreading to sub- interviews with directors and managers. sidiaries via a network created by Sonangol’s “Without wishing to discourage personal MSTelcom, to provide a state-of-the-art means interviews, it is actually one of our goals to of communication, direct to the workforce. present our board as a team, and we try to have Santos different teams dealing with other subjects,” explains Mr Santos. Media advertising is another area receiving Director, Group attention in the MIMCO project. “Around 90 Communications “Everything we do is of public interest. per cent of Angolan magazines, as well as inter- and Image national publications, carry advertisements for We have nothing to hide – and much Sonangol, and we cannot go on spending as we to communicate. We want Sonangol to have,” comments Mr Santos. With the new Sonangol branding in place, have empathy with the population, and media advertising will in future be highly focused on messages that are relevant to spe- we can achieve this through well cific audiences – backed by close scrutiny to thought-out strategy.” avoid wasting opportunities for presenting the E

company and its products in an appropriate N E S S A

context. M João Rosa Santos, E L L I

E

The same principle applies to sports spon- H

Director of Group Communications and Image, Sonangol P O T S sorship and support for cultural activities, I R H where Sonangol also enjoys a high profile role. C Both are massive aids to image-building and, with the right balance, hugely beneficial to In the meantime, there are currently a host many people. So the company has been of other routes by which staff are informed, involved with almost every activity, from the both about the company and other news. As by sponsorship of Girabola (the national football oon after meeting João Rosa Santos, his ences in Cuba in 1990. Following a two- no means all staff have access to a newspaper championships), to the Angolan Olympic enthusiasm and dedication to his work – year stint at the Ministry of Social there is an intranet service carrying a summary Committee, several foundations and NGOs – as Shis mission, almost – becomes evident. Communication in Malange in 1997 he of the day’s news – which is also posted on well as building and reconstructing schools. As Sonangol’s director of group commu- joined Sonangol Distribuidora before becom- notice boards – carrying oil-sector news as well On the cultural side, Sonangol invests con- nications and image, he is responsible for ing director of the Department of as the activities of Sonangol, both nationally siderable effort in scientific projects and the the many facets of projecting the company Communications and Image in 1998. In and internationally. rehabilitation of museums – the theme that nationally and internationally and, every bit 2004, João was given the task of co-ordinat- In the team culture of the company, the informs company policy being to channel sup- as important, the creation of a sound struc- ing communications for the whole of “We” word is central to this effort, with fre- port for the greatest number of people, rather ture for communications within the many Sonagol. quent items on different departments within than individuals. “We want Sonangol to have far-flung parts of the group too. He is unique- “I’m here because I’m interested in what the group, as well as opportunities to profile empathy with the population, and we can ly qualified for this role. I am doing,” says João. “But some day I’ll managers and directors. achieve this through well thought-out strategy,” João, now 43 years of age, has been a have to go back to journalism. I feel good in In line with all major corporations, prompt says Mr Santos. journalist for more than 20 years – having the skin of a journalist, and my free time is and reliable media communication is a vital Its national role also prompts in Sonangol started in 1978 at Angop (Angola Press), fol- tool, and as Mr Santos says: “Whether it likes it a great awareness of its responsibility for the lowing which he moved to the national dedicated to writing.” or not, in Angola Sonangol is connected with presentation of Angola’s national heritage. Mr newspaper, Jornal de Angola – and then to To prove this point, João is a member of the great national decisions. So we have to Santos explains: “We believe that we can only Ràdio Nacional de Angola as director of a the Union of Angolan Writers and the Union keep very close contacts with the various remain a real company to the extent that we provincial station. To round off his media of Angolan Journalists and he has already media through the usual mechanisms of press maintain the great responsibility that we have experience, João has also worked in TV for written five books as well as producing a conferences and announcements as well as towards society. We also understand that com- Televisão Pública de Angola. fortnightly column for the Jornal de Angola, personal contacts. munication is an active asset, because without João’s professional career took a change dealing with every day issues and the social “Everything we do is of public interest,” he it we cannot get anywhere.” ❖ in direction when he graduated in social sci- scene.

12 SONANGOL UNIVERSO SPRING 2005 13 interview

In this exclusive “At this meeting Gulf Oil agreed to His Excellency has a positive and esidério Costa conversation with start up its activities in Angola again, to optimistic view on the level of D Universo, minister of oil, take production back to 90,000bpd and transference of expertise and His Excellency Desidério then to renegotiate the contract. know-how in the current climate remembers… “This political pressure worked, and of oil exploration and extraction Costa, casts back to the Gulf Oil recommenced production at in Angola... early days before Block 0 90,000 bpd under the condition of con- tinuing contract negotiations that had “Angolans have a capacity to learn, was “Block 0” – and takes begun in the colonial era. These negotia- we are at ease. We are able to assimilate a glimpse into the future tions were started again in June 1977, by and learn – and that has an impact on the which point the franchise holder for the evolution of the oil sector and on the eco- Cabinda offshore fields was the Cabinda nomic development of the country as a Gulf Oil Company. whole. ecalling the period immediately fol- “This situation only changed with “The oil industry uses state-of-the- lowing Angola’s independence in the passing of Law 13/78, after which – art technology and fortunately we November 1975, when many lead- and taking into consideration the renego- R Angolans are able to master it and use it ing oil companies stood back from the tiation process that had begun in June correctly, so we are very satisfied. Every fledgling state, Desidério Costa played a 1977 – Sonangol (which had been created crucial role in getting production in the as the national oil company in 1976) day we learn new things – things which pioneering offshore fields back on became the holder of oil rights, with a 55 will give us more dignity as Angolans in stream. per cent participation in the contract the future.” “When Angola became independ- with Gulf Oil. ent on November 11, 1975 several oil “I would also like to mention here companies abandoned us. At that point that by the end of 1975 Angola was being … and considers how the Angola was producing around 104,000 courted by many oil companies, both the county’s oil industry will evolve. barrels a day, offshore and onshore – ‘majors’ and the so-called independents, and the activity of Gulf Oil, owner of the among them Angol, as well as American “There are good indications for the Cabinda Gulf Oil Company, stood out. and Romanian companies. Though some development of the Angolan oil industry. “There was no “Block O” then – that had previously been in place here We are working towards that. Our country they were just the “offshore oil fields” left, others were showing their interest in occupies a privileged position in the and some time after independence, obtaining concession rights.” world context as far as the oil industry is Gulf Oil, which operated in these off- concerned, which is due to its potential shore fields, stopped production. This and to the great discoveries that have created a lot of problems for us because Impressions of the last meeting been made in the last few years. already by this time we were counting of the “Three Generations” in “Whether through respect for con- “Angolans have a on the revenues from oil. S

E Soyo. tractual commitments, or through the H capacity to G

U “The then head of state, President H

- possibility of speedy recovery of the E

Z learn, we are at

O Neto, saw the attitude of Gulf Oil as a “The ‘Three Generations’ met in Soyo I L investments made by oil companies – K

A I hostile act against Angola, and as a con- through Percy Freudenthal, Hermínio

C ease. We are able

R and above all the investment on national A

M sequence measures had to be taken – Escóricio, Joaquim David and the present technicians and the opening of the sector to assimilate and especially in the political domain. We generation through Manuel Vicente. I was to private entrepreneurship – the policies learn – and that had several discussions about the issue, pleasantly surprised, especially because that have been put in place in the nation- and Gulf Oil proposed that they should we managed to bring together people has an impact on al oils sector have played an essential role analyse the dossier in Paris in January who had not met in a long time. the evolution of 1976. “We were able to get all these people in ensuring its stability and development. the oil sector and “Just as the delegation, composed together and discuss the evolution of the “The Ministry of Oil, representing on the economic of Dr Antero de Abreu, Percy oil sector with them, what has been done government in that sector takes on the Freudenthal and myself, was ready to and what can yet be done. We all realised role of regulating and overseeing oil- development of leave for France, orders were received that there is an esprit de corps in the oil related activity. When the new law to the country as a cancelling the meeting. One month sector.” regulate oil activity is approved by the whole.” later, under the instructions of National Assembly, the role of the min- President Neto, we went to Nigeria istry will become more embracing, His Excellency Desidério Costa, where we met the Nigerian authorities though keeping within the regulatory Minister of Oil and Gulf Oil. framework laid down.” ❖

14 SONANGOL UNIVERSO SPRING 2005 15 innovation

Couched though it may be in the buzzwords of marketing-speak, the innovative marketplace created for Angola’s oil industry offers fast-track routes to purchasing Oefficiencynline and cost saving. Marketplace

he word TradeJango has been specially coined to describe Sonangol’s new online Tsystem for optimising the efficiency of its purchasing power as well as that of its sub- sidiaries and the other players in Angola’s oil industry. The word was chosen because it com- bines the universal word, “trade” with the Angolan word jango, meaning forum. In fact, Marketplace TradeJango is much more than just another management tool: it is a sophisticated web-based application that works on many levels to facilitate every aspect of the purchasing operation and the relation- ships between supplier and user. As with many innovative schemes, its pres- entation is often surrounded by jargon and technicalities, but in reality the concept is as simple as the weekly town market where ven- dors set out their stalls so that the buyer strolling among them can examine, compare, select, bargain and buy. The difference is that Marketplace TradeJango is a virtual entity, and while the B R I A

N products and services are available for all to see

S T A

U they are presented on Internet websites in a F F E R

SPRING 2005 17 form that potential purchaser – Sonangol, its transactions through them,” says Mr Vicente. time, this total could climb to around 25 people all companies working directly or indirectly in subsidiaries and the upstream operating com- “As a platform, our online marketplace will but there will always be consultants for specific the oil business – covering the entire supply panies, among others – can inspect and increase the visibility of purchasing needs and areas of the project, such as IT where the neces- chain; and in its mature state the operation consider, and negotiate on line. develop the national economy through adding sary skills may not be available locally. will be in a position to extend its scope and For the same reason, this marketplace value to the Angolan content.” The whole project is currently on schedule target market, very much depending on the offers the transparency of a level playing field, In practice, Marketplace has been – with the focus on the major players, some of success of Angola’s upstream business. where all are equal, plus the efficiency impart- designed as a powerful web tool, through whom already have purchasing mechanisms For example, the marketplace could possi- ed by the speed and accuracy with which which it will be possible to do much more. to meet their needs. But TradeJango will be in bly grow to assume a strategic position purchasers can quickly narrow their search Among other things it will be able to present a position to offer common solutions – an covering the west African countries of the Gulf and make contact with a potential supplier. precise definitions of complex requirements to extra tool that will not require additional of Guinea with high potential upstream busi- “Marketplace TradeJango will enable potential suppliers, to operate inverted auc- equipment or software. Referring to the ness, refining, distribution and LNG. tions, to consult catalogues, to put through Petrobrás model, Accenture points out that By any measure, Marketplace TradeJango purchase orders and to systemise both the after just after two years of operation, the is a major project for Sonangol: $8 million was “Marketplace TradeJango is committed to process of approval of contracts from the fran- value of the business contracted is already allocated for the initial development phase, ensuring that the great majority of suppliers chise holder as well as the process of purchase significant. and ultimately this figure could grow by many by partners. In order to deliver its great benefits, tens of millions of dollars more. which constitute it will be Angolan, thus “The strategic decision to implement Marketplace TradeJango will offer a compre- Manuel Vicente concludes: “I am con- contributing to the dynamics of commercial Marketplace TradeJango makes good sense hensive package: procurement services, value scious that though this is a process initiated by within the dynamic perspective with which added services, information services and other Sonangol, for its maximum utilisation and transactions through them.” Sonangol views the future,” states Mr Vicente, additional services through partnerships value it has to count on the collaboration of Manuel Vicente, CEO, Sonangol pointing out that the concept is borne of established with third parties. all. Our greatest challenge will be to achieve worldwide experience and a business case In its initial stages, TradeJango will be ori- this level of involvement and, with that in which demonstrates operational results. ented just for the oil companies established in mind, the implementation team has worked Sonangol to achieve significant reductions in The Marketplace TradeJango project, to be Angola and their suppliers. In the medium with all participants since the beginning the the cost of purchasing stocks, as well as aug- launched in the first quarter of 2005, has been term the marketplace will extend its reach to project.” ❖ menting the visibility of the process and the formulated by a mixed team of Sonangol man- promotion of home-produced Angolan con- agement and Accenture. Work started some tent,” explains Sonangol CEO, Manuel Vicente. three years ago, and the project is now at the TradeJango Jargon The TradeJango idea is not a new one, third stage having gone through a feasibility having been perfected by the international analysis which led to the definition of an oper- PROCUREMENT SERVICES (e.g. suppliers’ performance, price trends, pur- Track and trace – using the marketplace consultants, Accenture and tailored to the ating model. Functions that support trade between the oil chasing volumes, etc). to find out the exact location of purchased individual needs of large firms all over the At present there are five members on the companies established in Angola and their materials and equipment. world. Indeed, Accenture took Petronet, which team from Sonangol, headed by Frederico suppliers. Studies and analysis – gaining access they had created for the Brazilian oil giant Brancel, who is jointly responsible for the to all kinds of studies and analysis through Financial services – using the financial using cata- Petrobrás, as the model for Sonangol’s market management of the project and has been Catalogue transactions – partnerships established between the market- services available through the marketplace logues available in the marketplace, specific to place. working as a facilitator of contracts with the place and specialised companies. (e-fulfilment and e-payment). Unlike the original Roman forum, relevant departments within Sonangol, over- a particular oil company, or generic to all oil Marketplace TradeJango is an electronic arena, seeing such aspects as financial management companies to purchase materials and services. Demand collaborative planning – INFORMATION SERVICES where companies wishing to do business – and risk analysis. improving information shared with suppliers in using templates made available in the Services that allow sharing between all the whether as buyers, sellers, suppliers, distribu- Accenture membership of the team num- eRFX – order to increase their service levels (e.g. lead marketplace to send RFI, RFQ and RFP. parties in the marketplace. tors and/or clients – can come together to bers 11, almost all of them from Lisbon. As the time reduction). trade. For Sonangol, its main objective is to company explains, it is policy to work with the Auctions – creating reverse auctions to buy Information centre – using the market- guarantee efficient management of these client in a mixed group – and, in fact, the rela- materials and services, and creating direct auc- ADDITIONAL SERVICES place to gain access to information services Complementary services offered through processes through the development of struc- tionship with Sonangol goes back to 1989 tions to sell materials (e.g. obsolete items). related to new technologies, suppliers, prod- partnerships with third parties. tures and the organisation of resources to when the idea was first discussed. ucts and services, etc. ensure future profitability. Marketplace TradeJango will be part of a Demand aggregation – aggregating Another aim is to contribute to the company which belongs 90 per cent to demand to assure large-scale buying power. Product evaluation – using the market- place to assure that products meet Industry news – gaining access to specific Angolan economy by providing a platform on Sonangol Holding and 10 per cent to Sonangol requirements (e.g. partnerships established Angolan and worldwide industry news (discov- which the needs of its oil and gas industry can P&P – keeping open the possibility of integrat- VALUE ADDED SERVICES with chemical laboratories to test materials). eries, crude quotes). be publicly displayed for the benefit of suppli- ing players from the industry who show Reporting and other information services ers, in a context of transparency. interest, but initially managed by Sonangol. made available by the marketplace. using Discussion groups – sharing information “Marketplace TradeJango is committed to During the first stage there will be around Logistics and transportation – using the market- the logistical services available through the and general knowledge with other parties, ensuring that the great majority of suppliers 12 full-time staff covering all functions, includ- Analytical services – place database to gain access to relevant marketplace to assure the transportation of namely the oil companies established in which constitute it will be Angolan, thus con- ing marketing, IT, human resources and client reporting which concerns purchasing activity purchased materials and equipment. Angola and the main suppliers. tributing to the dynamics of commercial support among other activities. In three years

18 SONANGOL UNIVERSO SPRING 2005 19 telecommunication

Reaching for the phone to make a social or business call is something most people take [ for granted, but in many parts of Angola, ] until now this has not been an option. Dish Connected

onangol subsidiary MSTelcom has recently launched a new satellite-based system, designed to offer communication facili- Sties in communities where there is currently a lack of any service at all by Angola Telecom or other providers. MSTelcom Services SARL was formed in 1997 to set up and oper- ate a reliable and efficient communications network for the Sonangol Group. “At the time it was impossible for the company to communi- cate by phone with the different areas of Luanda itself, and these difficulties only became greater when one tried to connect with another province,” recalls MSTelcom general director, Alberto Araújo. As a subsidiary of the Sonangol Group, in 1999 MSTelcom was capitalised at $34.6 million, of which 99 per cent was owned by Sonangol EP and the remainder by Sonangol P&P. The company was licensed as a telecoms operator in 2003 – one of four in the country. MSTelcom’s stated mission is to meet its responsibilities in pro- viding support for the various units of Sonangol EP and the petroleum sector in general while maintaining active partnerships with clients. Other goals of the company are to position itself as one of the leaders in Angola’s telecoms sector, as well as to become a prominent member of the SADC region. MSTelcom is dedicated to maintaining continuous technological evolution by adopting the cut- ting-edge technologies in the sector. So having successfully established a comprehensive independent network to link Sonangol EP and its subsidiaries and other locations, especially offshore with voice and data services, in 1999 the company realised it could deliver a valuable service to the country as a whole by expanding its operations to the public sector. B R I A

N While Angola Telecom offers a conventional service to cus-

S T A U F F E R SPRING 2005 21 Satellite Network Sonangol Network Unitel Network tomers, MSTelcom’s network is entirely satel- pany MSTelcom also has a positive approach lite-based, linking key locations throughout to staff relations, which it sees as important to Cabinda Others

Angola. “Our strategy in the medium and long maintain its momentum in the market. “We Mbanza Congo term centres around three areas,” explains Mr believe in the reconciliation of business objec- Soyo Araújo. “We aim to have a strong presence in tives with those of employees,” explains Mr the oil sector, of course – but also to promote Araújo, “including functional and individual Uige Lucapa investment to continually improve circuits for development and salaries set according to per- other operators, to be the national carrier.” He formance.” LUANDA continues: “We intend also to enhance our With its agenda firmly focused on growth, Ndalatando Malanje social role through the building of rural satel- MSTelcom has its priorities set to tackle the Saurimo lite connectivity for private users, as well as for principal markets of telephony and Internet industrial firms and businesses within these access, high-speed Internet and e-mail, teleph-

communities.” ony and leased lines; private networks, VSAT Luena On November 11, 2004 MSTelcom took a services, broadband and public telephony, Lobito Kuito major step in this direction by introducing a Internet kiosks, payphones and pre-paid public service based on its satellite network, phone cards. Huambo whereby franchisees would be able to offer MSTelcom is an organisation typical of its

direct access to telephone services at fixed Sonangol roots, born of the need to provide a Lubango locations. The first of these is in Barra do dependable service to the company. Through Namibe Menongue Dande, Cabiri and Muxima, all in Bengo the resources of its management and staff it Province, with other similar services due to has grown into a top-rank service provider that open throughout the country as potential fran- can now offer the fruits of its expertise to pri- Ondjiva chisees come forward. Thus an ever-widening vate, business and industrial users of the network will spread across the country. country as a whole. ❖ At the opening ceremony in Cabiri, in the presence of Alberto Araújo, Sonangol adminis- trator, Syanga Abilio, commercial director Rui Faria and local members of the state adminis- MSTelcom at a Glance tration, the communal administrator for Cabiri, Luis Adao Vicente said: “Commun- Head office: National and international connectivity Mercury Equipment ication among towns in the province has been E

N Bairro da Petrangle, Radio trunking systems Radio terminals E S S facilitated, and Bengo has entered the era of A

M Rua Farol das Lagostas E Telephone terminals L L I

globalisation. The service can be installed in E H

P Telecommunications Services Telephone centrals

O the most remote locations, and in this way T S I Branch offices: R Landline with countrywide local, interre- H

C MSTelcom will contribute to keeping alive the Soyo – Kwanda Oil Services Base oral traditions of Africa. gional and international access Technical Support Lobito – Secil Telecom Center Though it still does not have its own voice Wireless terrestrial with countrywide Radio installation, programming and network, MSTelcom has created the technical local, inter regional and international repair Subsidiary of Sonangol Group, “We intend to enhance our social conditions necessary for providing a public access Telephone central and terminal installation founded in 1997 telephone and Internet service. Corporate terrestrial networks with remote and programming role through the building of rural Owned by: Sonangol EP (99 per cent), MSTelcom is also actively involved in two location access, and international access satellite connectivity for private Sonangol P&P (1 per cent) partnerships, with Schlumberger and Principal Customers Stock capital: $34.6 million (1999) users, as well as for industrial firms CapRock. “The Schlumberger partnership Licensed as telecom operator in 2003 Microwave Sonangol Group and businesses within these offers a service of interconnection among dif- Corporate networks for data transmission Chitolo VSAT and Internet ferent companies. With CapRock we have the communities.” Services in medium and high bandwidth TDA Hotels Internet aim of participating in offshore operations via National satellite coverage Cimangola Internet satellite,” says Mr Araújo. Broadband services Radio Communications Enama Internet Alberto Araújo, General Director, MSTelcom MSTelcom is a tight-run ship, with a total Terrestrial links Radio trunking service provider SML Internet management, administrative and technical Internet access Conventional radio service provider Petrogal Trunking staff of just over 70, and its focus is on a high level of technical expertise. As a youthful com-

22 SONANGOL UNIVERSO SPRING 2005 23 energy

he central message of World Energy governments decided to act much more vig- Outlook 2004 remains an optimistic orously to combat environmental problems “Tone. The earth contains more than and reduce energy security risks. enough energy resources to meet demand For every reader, whether a corporate for many decades to come,” said decision maker, government employee or International Energy Agency executive those with just a general interest in energy than director, Claude Mandil, when he presented matters, this very lucidly presented and More the agency’s flagship publication on contemporaneous analysis gives a fascinat- October 26, 2004. “The world is not running ing, and on the whole a reassuring, insight out of oil just yet,” he continued. “Moreover, to world energy and the options con- there is more than enough money globally fronting the entities that control it. to finance the large expansion of energy “What this analysis shows very clearly infrastructure that will be needed.” is that achieving a truly sustainable energy As in past editions, this year’s WEO system will depend on technological break- presents an exhaustive set of historical data throughs that radically alter how we Enough and projections covering demand, supply, produce and use energy,” says Mr Mandil, trade, investment and CO2 emissions for all calling on governments to take the lead in fuels in 20 major countries and world accelerating the development and deploy- regions. This year the publication also con- ment of new technologies that will allow the World Energy Outlook tains several additional special features. world to meet growing energy needs with- 2004 strikes a positive In the context of the volatile period the out compromising energy security and the world is passing through, with soaring oil, environment. note – underscored by a gas and coal prices, the exploding demand Outlook 2004 finds that the demand for call for the development in China, the war in Iraq and other factors, primary energy in all its forms is set to grow there is a study of the effects of persisting by 59 per cent from now until 2030 (the of technologies to meet high oil prices which concludes that if these period under review). This will be led by the growing global needs stay high, they will substantially erode requirement for oil, which will expand at 1.6 demand and reduce the income of OPEC International Energy Agency without compromising producers over the medium term. energy security and the In the wake of dramatic revelations by a The Paris-based International Energy In addition to the formulation of number of oil majors, a detailed analysis agency (IEA) was born of the oil crisis energy response mechanisms, the IEA environment. In this examines how oil and gas companies calcu- of 1973/74, which focused the atten- monitors medium-term international oil review of the late their “proven”, “probable” and tion of the industrialised world on its markets and its publications programme “possible” reserves. The study finds that dependence on oil imported from a rel- documents in-depth information to serve International Energy practices vary considerably, creating a con- atively small group of producing governments and the public. The IEA is Agency’s flagship fusing picture of overall world reserves. The countries, often subject to destabilising the world’s leading source of energy sta- IEA calls for a universally recognised influences. tistics covering a wide spectrum. publication, Universo methodology for reserves estimation. Membership includes 26 industri- The IEA’s flagship publication, highlights the On a social front, WEO takes a hard alised nations that are committed to World Energy Outlook, is published look at the issue of energy poverty, includ- sharing all energy information – not just annually. In odd-numbered years, implications for oil – and ing a new “energy development index”, as a oil – and to co-operate in the develop- Outlook gives a comprehensive analysis for Angola’s oil and gas handy measure of how far countries have ment of rational energy programmes. of a topical issue or challenge con- advanced along the road to energy maturity These programmes are aimed at fronting the energy sector; in industry in particular. in areas of per-capita energy use, the use of maintaining and improving systems for even-numbered years, it provides pro- modern energy services and rates of electri- coping with disruption, improving the jections for energy demand and supply fication. world’s energy supply and demand for the world as a whole, as well as for An in-depth study addresses Russia’s structure, operating a permanent infor- 19 major regions. role as a major energy power – recognising mation system, and to promote energy The 2004 edition addresses these that while it may be the most important policies in a global context. An impor- issues over a timeframe up to 2030, energy country at the moment, enormous tant aspect is also to assist in the including long-term projections for the uncertainties shroud the future. integration of environmental and energy supply and demand of oil, gas, coal, Finally a “World Alternative Policy policies, especially in the areas of ener- renewables and energy-related CO2 Scenario”, which for the first time includes gy efficiency and diversification. emissions. the developing world and emerging market S I B

R economies, considers what would happen if O C

24 SONANGOL UNIVERSO SPRING 2005 25 per cent per year – from 82 million barrels per lation growth, energy prices, technology and fastest growth (15 per cent), followed by Russia Cumulative Global “The earth contains day at present to 121 million bpd in 2030. other conditions. (7 per cent) and Japan (5 per cent) – but natu- Oil Investment Overall, some 85 per cent of the increase will The Reference Scenario may be consid- ral gas, of which the world has plentiful 2003–2030 more than enough be in the form of carbon-emitting fossil fuels, ered as a baseline of how the global energy reserves, will remain the most competitive fuel energy resources to while two-thirds of the demand will come from system will evolve if governments take no fur- for the new high-efficiency combined-cycle meet demand for the developing world, especially China and ther action beyond that to which they are gas turbine (CCGT) plants. During the period Cumulative global many decades to India. already committed; the World Alternative there will be a growing demand for gas by gas- investment in the oil indus- The average IEA crude oil import price is Policy Scenario takes into account a range of to-liquid plants and for the production of try will total $3 trillion over come. Moreover, assumed to fall back from current highs to $22 options to address environmental considera- hydrogen fuel cells.* the period 2003–2030 there is more than per barrel (in year-2000 dollars) in 2006, and tions across the world. The role of nuclear fuel seems set to (around $105 billion a enough money remain flat until 2010 before climbing steadily Another of the IEA’s tools is its World diminish for a number of reasons – not least year), according to WEO to $29 in 2030. Gas prices are assumed to move Energy Model – a large mathematical model competition from other technologies – but 2004 projections. While globally to finance broadly in line with oil, and steam coal prices that is used to generate detailed sector-by-sec- such predictions could be altered depending capital spending will have are assumed to average $40 per tonne through tor and region-by-region projections. on government policies and public attitudes. the large expansion to increase to meet demand to 2010 and rise slowly thereafter to $44 in While the world’s energy resources are Energy sources, such as hydropower, bio- and to replace obsolete of energy 2030. In the High Oil Price Scenario, crude is seen to be adequate to meet projected mass and waste are also examined – the former infrastructure, exploration infrastructure that assumed to average $35 over the whole period. demands up to 2030, fossil fuels will continue set to expand by just under 2 per cent during will dominate oil-sector These findings are based on the IEA’s to dominate, with oil as the single largest fuel the period, and the latter to shrink slightly. will be needed.” investment – and following Reference Scenario, the primary objective of in the primary energy mix – and also the most WEO sees other renewables: geothermal, solar, on this, investment in Claude Mandil, Executive Director, which is to identify and quantify key factors heavily traded. wind, tidal and wave energy, growing faster International Energy Agency that are likely to affect energy supply and Dependence on Middle East oil will con- than any other primary energy source at tankers and pipelines alone demand based on a set of assumptions about tinue to grow but, as the High Price Scenario almost 16 per cent, though their share of total will amount to some $234 S I

B billion by 2030. R government policies, macroeconomics, popu- demonstrates, this will not necessarily be a world demand will still be very small, at just 2 O C positive step for the region: it shows that both per cent. But although the producers and consumers have an interest in In considering the uncertainties surround- requirements for oil-invest- avoiding high prices. ing its projections, WEO takes into account ment will be large, the LNG Demand ral gas is the preferred fuel for high-efficien- notably in Qatar, which can bring global Among the other fossil fuels, coal use is unpredictable – but potentially disastrous – capital resources will be Set to Increase cy CCGT plants, and also has inherent GTL capacity to 800,000 bpd by 2011. rising most rapidly, with China registering the possibilities such as accidents, political and available – though influ- environmental advantages over other fossil Despite substantial unit-cost reduction, enced by several important fuels. in recent years gas transportation remains factors. The global demand for natural gas Africa will experience a very rapid very expensive, but due to technological First, investment is like- (LNG) is expected to increase by more in growth in primary gas demand – more than advances and high oil prices, GTL has Cumulative Global Investment, 2003-2030 ly to be limited to absolute terms than any other primary ener- 5 per cent by 2030, but from a low base, become an attractive option for holders of potentially profitable oppor- gy source, according to WEO 2004 – and less in per capita terms than the rest of reserves that cannot be transported econom- tunities, with oil prices as almost doubling to 4,130 million tonnes oil the world. However, the continent is well ically by pipeline. United States & Canada the key. The openness of equivalent by 2030. endowed with proven reserves (180 trillion countries with large oil There are plans to build liquefaction Middle East Demand will grow quickest in Africa, cu.m at the start of 2004) and production is resources to foreign direct plants in Angola (the Angola LNG plant at Latin America and developing Asia, but the set to rise strongly in the next few years, Africa investment will be another Soyo) and Equatorial Guinea, while two volume increase will be larger in the OECD with the expansion of existing facilities in influence, as will the politi- new trains are due to be commissioned in Russia markets of North America, Europe and the north and west Africa feeding markets in cal stability of a country or Nigeria in 2005, with a third one to come transition economies. Europe and North America. Other OECD region. on stream by the end of the decade. Global gas resources will easily be Cumulative investment needs for gas- Latin America For example, Outlook LNG flows have doubled in the past able to meet this demand, with the discov- supply infrastructure to 2030 will be in the 2004 gives Nigeria’s esti- ten years, and while long-term contracts con- Developing Asia ery of proven resources having outpaced region of $100 billion per year, and gas-to- mated proven reserves as production by wide margin since the liquid plants will emerge as a leading new tinue to dominate the business, short-term Other Transition Economies some 25 million barrels, but single-carriage sales are expected to 1970s. These now total around 66 years at market for those reserves located far from Tankers and Pipelines securing the necessary current rates. traditional markets. become more important. finance to accommodate Inter-regional gas trade will triple over At present there are only two commer- Because of the highly capita-intensive 0 100 200 300 400 500 600 that country’s production the period, with all importing regions seeing cial-scale GTL plants in operation: the nature of the LNG business, most new proj- billion dollars (2000) goals could be difficult as their intake rising, and OPEC countries con- Mossgas 22,500 bpd facility in South ects will still require long-term contracts, but investment risk is high due tinuing to dominate supply. Power Africa and Shell’s 12,500 bpd Bintulu plant part of the capacity of some liquefaction Exploration and Development Non-conventional Oil Refining to corruption and political generation is expected to account for almost in Malaysia, but several other plants are plants is not covered by such arrangements, instability.

60 per cent of the increase, because natu- under construction or being planned, and so will be available to the spot market. Source: World Energy Outlook 2004, International Energy Agency, Paris

26 SONANGOL UNIVERSO SPRING 2005 27 terrorist action, even piracy. It identifies cru- economies and developing regions are much “What this analysis cial bottlenecks in transportation routes, and larger relative to the size of their economies shows very clearly also points to the worrying trends associated than in OECD countries. is that achieving a with CO2 emissions, which are set to increase Few governments can fully fund the nec- by 1.7 per cent over the period – nearly 70 per essary investment, which will therefore have truly sustainable cent of this increase coming from the develop- to come from private sources – so raising energy system will ing countries. finance will depend critically on governments Bosporus depend on “But these trends are not unalterable,” Mr creating an attractive investment climate. 3 Mandil points out. “Our analysis [in the Running to almost 600 pages, World 20 36

technological s 3.8 Alternative Policy Scenario] shows that vigor- Energy Outlook 2004 contains hundreds of i Hormuz r

a 15.3 P

ous government action could steer the world colour graphics and easy-to-read tables to ,

breakthroughs that y 5 4 c n

onto a markedly different path.” illustrate its detailed statistics and analyses. In e g 3.3 A

radically alter how y

Achieving the global energy supply pro- his conclusion, Mr Mandil comments: “WEO g 0.4 Bab el-Mandab r Panama e

we produce and n jected in Outlook 2004 calls for a cumulative does not pretend to solve the multiple prob- E Malacca

l 11 a n

investment of $16 trillion in year 2000 dollars lems that disturb our energy world, but it o i

use energy.” t a n

– or $568 billion per annum. supplies the statistics and analytical back- r e t n

I 14 20

Claude Mandil, Executive The IEA considers that enough money ground out of which any solution will have to , 4 0 0

Director, International Energy exists for this projected investment. In some be crafted. It is, in fact, an indispensable doc- 2

k o o

Agency regions those capital needs represent a very ument.” l t u O

large share of total savings, and mobilising the y g r

investment required will depend on whether *Angola LNG, which will commence production in e n E

d 2009 at Soyo, 300kms to the north of Luanda, is l 3 returns are high enough. r Oil flow, 2003 (mb/d) o W

Financing the required investment in Angola’s ambitious venture to join the natural gas :

e 2003 2030 c r

non-OECD countries will be the biggest chal- boom. See the special report in Universo Spring 2004 u

o Share of world oil demand (%) lenge, while the financial needs in transition edition. S

The Implications of High Oil Prices Major Oil Flow chokepoints In the IEA projections for the period to 2003 all the net oil importing regions will Culminating in the dramatic highs of 2004, crude and fuels, as well as promoting more careful and efficient usage of oil become even more dependent on imports. Oil tankers will remain the principal form of refined product prices have swung dramatically in recent years. and gas. transport, and the world tanker fleet is projected to expand by nearly 90 per cent to 500 So much so, that notwithstanding WEO 2004’s projections for The impact would vary substantially among production million dead-weight tonnes. Pipelines will only be a completive option where they can be them to fall back again in the next two years, certain combina- regions: OPEC producers would face increasing competition from built onshore. tions of factors could keep prices high for years to come. Such non-OPEC regions, while higher prices would encourage the While this increased trade will strengthen the mutual dependence of the importing factors include: development of reserves in the latter as marginal fields became and exporting countries, it will intensify the world’s vulnerability to supply disruptions, as • Under-investment in supply infrastructure, whereby unattrac- commercial. much of the additional trade will involve routes that could be at risk from sudden closure tive fiscal terms would limit investment – as could national due to accident, terrorism and even piracy. oil companies identifying more profitable employment for Cumulative Oil Investment in the Reference Scenario There are nine main strategic channels, through which some 38 million bpd currently capital than exploration and production, or governments and the High Oil Price Case, 2003-2030 pass. Traffic through the Straits of Hormuz and Malacca and the Suez Canal is projected limiting investment in new capacity. to double by 2030. • Strong demand-side pressure, such as from the growing Developing Asia Asian economies and China, and the continuing tightness Million bpd of the US economy. Latin America Straits of Hormuz, at the mouth of the Arabian Gulf: 15.0 • Lack of resource availability if reserves prove smaller than Malacca Straits, between Indonesia and Malaysia: 11.0 current estimates, or more difficult to extract. Africa • Geopolitical factors involving political, terrorist or other dis- Suez Canal, connecting the Mediterranean and Red Seas: 1.3 ruptions to supply. Transition Economies Sumed Pipeline, linking the Mediterranean with the Red Sea: 2.5 In the current climate of these factors, Outlook makes a sepa- Middle East Bab el-Mandab passage, between the Red Sea and Gulf of Aden: 3.3 rate analysis to examine the effects on supply and demand, based Bosporus, connecting the Black Sea with the Mediterranean: 3.0 on an assumed average price of $35 per barrel in year-2000 dol- OECD Panama Canal, between the Atlantic and Pacific oceans: 0.4 lars. 0 100 200 300 400 500 600 700 800 900 1000 In this scenario, world oil demand in 2030 would be some Druzhba Pipeline, transporting Russian crude to Europe: 1.2 15 per cent lower than the Reference Scenario, and energy billion dollars (2000) Baltic pipeline system, carrying Russian crude to the Baltic ports: 1.0 demand would be choked off, prompting users to switch to other Reference Scenario High Oil Price Case

Source: World Energy Outlook 2004, International Energy Agency, Paris 28 SONANGOL UNIVERSO SPRING 2005 29 P H O T O

C O U

As the sun moves south towards the Tropic of Capricorn, summer R T E S Y

O F

ccomesomes to Angola and all activity seems to require extra effort while eyes follow S O N A N

the slow mmovementovement of the clock, tracing the minutes towards the end of the G O A L working day. But the sultry evenings have their pleasures to offer: there is the L special sensation of sipping one of the country’s many superb beers – light, cooling and zesty, the perfect antidote to thirst in the fast-fading twilight. When the weekend arrives, Luanda has its own brilliant counterpart

O to Rio’s world-famous beaches in its unique Ilha do Cabo, an island no more than 30 minutes from the metropolis. Here there is pleasure in colourful variety, from a lazy day on the beach in the cooling Atlantic breeze, a game

G of volleyball – or languid hours spent with friends in one of the many bars and restaurants.” Dressing for the occasion is N imporimportanttant too – and as we see on Luanda’Luanda’ss innoinno-- vative fashion scene, Angolans have a lively apprapproachoach to

A the way they wear clothes. Further down the coast, another beach, the Cabo do Ledo with its awesome Atlantic rollers, is one of Angola’s many fine surfing locations now attracting international attention. E But in this country, motivated by the drive to claw back the years lost in conflict, reality is never far below the surface. In Zaire province the land- scape is marked in every direction by evidence of one provider of the D nation’nation’ss wealth, and the drive to wrwrestest it from beneath the sea. I Ever soaring overhead is the spirit that compels Angolans to achieve their best – exemplified by such as the blind, Paralympic

S record-beating athlete, Jose Sayovo. N I regional focus

60 per cent of the country’s total oil produc- tion. “People are always surprised when they come to Soyo. They expect it to be like Cabinda because we are both oil centres, but it’s nothing like it. It’s very quiet here, not very Soyo Seed developed,” says one local businessman. The long, dusty Rua Principal, reminis- cent of a deserted Wild West town, takes in of little more than one hotel, two banks and a grocery store. Nearby, a noisy, bustling street market sells local fruit and vegetables, fresh fish and anything else one might want for the Hope home or wardrobe. With many of the stallhold- ers and much of the produce coming from the neighbouring Democratic Republic of Congo, the lively market has a distinctly central African feel. But there is little else happening on the economic front and local facilities pale in comparison to those of Angola’s other oil cen- tres. This is a fact not lost on Soyo’s municipal administrator, Manuel Antonio. “The economy is bad, the infrastructure is bad, there are not many asphalt roads and we don’t even have a real city,” he says, lamenting the slow pace of progress of the entire region. “In terms of development, Zaire is the poorest and least developed province in Angola.” Rich in heritage and the wealth created by Just a five-minute drive from the adminis- its offshore oil industry, Angola’s poorest trator’s office is the impressive Kwanda base,

L the logistical heart of the oil industry operat- A U R E

province pins its hopes for a brighter future N ing offshore northern Angola and south of T

Z Y

L Cabinda. Here, it is all go, 24 hours a day, B E R

on the building of Angola’s first LNG plant. M

A seven days a week: this 160-hectare one-stop N shop offers all kinds of services and support including office space, warehousing and port teeped in a rich history and at the heart and Africa,” says Jose Cristovao, a local jour- where colonial navigator Diogo Cao planted a facilities, as well as accommodation and “This is an of a kingdom that once encompassed a nalist working in the provincial capital. stone monument marking Portugal’s first steps catering. Svast swathes of the African continent, Mbanza Congo is home to the on African soil in the late 15th century, a con- Managed by Kwanda Limitada, a joint historical Zaire is a province firmly entrenched in the Kulumbimbi church, constructed in the late servation site. venture between Sonangol and Saipem, the sglory of its past. 15th century and the first to be built south of Encountering fierce resistance from the base counts among its clientele big-name province. It is Its capital city, Mbanza Congo, was once the Sahara. Today the stone building is in King of Congo and his loyal subjects, the industry players such as Esso, Petromar, central to the the majestic headquarters of the Rei do Kongo ruins, but moves are afoot to bring it back to Portuguese nevertheless managed to expand Halliburton and Total, and will soon be able to (King of Congo), a ruler whose powers extend- its former glory. The Estrela do Kongo (Star of their reach across the fertile lands of South add to this list the British giant BP. culture of ed across today’s Democratic Republic of Congo) hotel on the main street pays homage West Africa, eventually establishing the bor- Surrounded by piles of paperwork and Congo, Congo Brazzaville and Gabon, taking to the kingdom’s former splendour. Once a ders of Angola as we know it today. While with his radio and mobile phone constantly Angola and in part of the Central African Republic and grand colonial-style building, it too was bat- conserving Zaire’s rich heritage is vital to its calling his attention, Kwanda Limitada’s Africa.” reaching down as far as Luanda’s island penin- tered by Angola’s civil war, but has also already people, some say that the province – one of deputy operations manager Guy Moreau has sula, the Ilha. undergone extensive renovation. the least developed in Angola – should also his hands full thanks to the phenomenal For the 376,000 people who now inhabit Approximately 400 kms to the west, where start looking forwards to its future. growth of the region’s oil production. Propelled Jose Cristovao, Journalist, Soyo this northeastern coastal province, it is the the Congo River meets the Atlantic ocean, the Indeed, touching down at Soyo amid vast by ever-increasing deepwater activity and strength of their past that characterises the port town of Soyo is regarded as one of acres of mangroves, the average visitor may be Angola’s massive (LNG) project, slated to find a region to this day. “This is an historical Angola’s most important historical locations. astonished to learn that this is the economic home on the Kwanda complex, business is set province. It is central to the culture of Angola Locals have declared the Ponta do Padrao, hub of Zaire province, responsible for around to swell even further.

32 SONANGOL UNIVERSO SPRING 2005 33 O T N I P

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: anticipated. “The local population is pinning member and local resident takes a short break S O T “This is a big O its hopes on the LNG project,” says Mr from tending to customers to explain how life H P Antonio, the municipal administrator, urging in Soyo has improved thanks to the proximity opportunity for project partners to dip into the local labour of the base. our future. We pool when seeking staff. “This is a big oppor- “I’m really lucky to be working here at the tunity for our future. We understand that hotel. Having a decent, regular salary has understand that during the start-up phase around 8,000 to made a huge difference to me and my family. during the start- 9,000 workers will be employed. We hope that I’m able to send my children to a good school lots of those will be local.” and make improvements to my house. For the up phase around Indeed, Soyo residents hope they will not local people who work at the base, quality of 8,000 to 9,000 have to wait too long to find jobs at the pro- life is quite good,” he says. posed plant. The partners, which include His modest goals epitomise the desires of workers will be Sonangol, ChevronTexaco and the other oil Angola’s Bakongo ethnic group, which makes employed. We majors, are still hammering out its finer details up the lion’s share of this province. At the core hope that lots of but construction could start within two years. of their aspirations is the simple desire to have The wheels have already been set in a home, a piece of land and a handful of cattle those will be motion, with the Kwanda base taking bookings – just enough to feed the family and maybe a local.” for 70 visitors in early 2005, followed soon after little bit more. by another 300, all dedicated to realising the Even Soyo’s administrator, who hails from Soyo’s municipal administrator, project. Accommodating such large groups of a farming family and keeps chickens in the Manuel Antonio. people could be a challenge for slumbering garden of his residence, wants some day to Soyo, where visitor attractions, hotels and return to his roots. restaurants are few and far between. “I was born on a coffee farm, my father At present, the base can put up around was a farmer and I have land in my veins,” 300 workers and is building apartments to says Mr. Antonio. “All I want for my future is a sleep another 60. Recognising that an increas- simple life with land, animals and a few crops. ing number of high-flying visitors is also likely, All I want is the Bakongo dream.” ❖ Sonangol has built a stunning four-star hotel, with 27 double rooms and three luxury suites, right on the base. With a sweeping marble staircase, kidney- shaped swimming pool, a gym and business centre, the Kwanda Hotel is certainly one of the most up-market, not only in the region but because it’s such a large project,” he adds. also across the entire country. “Yes, it is very Kwanda Limitada already provides jobs for beautiful,” agrees Pedro Avelho, the hotel’s around 300 local staff, making it the biggest Portuguese general manager, while a staff employer in Soyo, while other firms using the base also look to the town for personnel. This is a constant source of encourage- The much-heralded $5 billion plant, ment and inspiration to 14-year-old João Jorge which aims to halt the environmentally-harm- and his friends, born and brought up in Soyo, ful practice of flaring or burning gas, will at the who are all looking to the base for their same time create additional revenues for careers. “I want to become a mechanic when I MBANZA CONGO Sonangol, the other oil majors operating in finish school,” Jorge says. “I know they need (clockwise from top left) Angola as well as a host of related service mechanics and I hope one day there’ll be a job The Kulumbimbi church con- providers. “We are very optimistic about the for me.” structed in the late 15th future because there is still a lot of activity off- More than half of the town population of century, is a favourite meeting shore with deepwater and there are new 106,000 is out of work and the regional econo- place for local school children. developments to come. We are sure we’ll get my offers little outside oil other than UP MARKET: more business,” Mr Moreau says. traditional fishing, subsistence farming and A smiling school girl meets her General manager, “We’ll certainly be involved (in the LNG small-scale activities such as baking and friends in the churchyard . Pedro Avelho shows off the project) in one way or another. Definitely at milling. four-star Kwanda Hotel’s The ruined Church of the beginning we’ll be handling material com- With this backdrop, the potential boost to sweeping marble staircase. Imaculada Conteiçao~ ing in by boat. For sure it’s good for business jobs offered by the LNG facility is eagerly

34 SONANGOL UNIVERSO SPRING 2005 35 industry B I L L B O A R D

P H O T O S :

J O S E

S I L V A

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THIRST PROVOKING: Billboards advertising leading brands of beer are to be S I B R

O found throughout Luanda. C

It may be Angola’s Brewing favourite beverage to enjoy in moments of Healthy relaxation, but beer is also proving to be a healthy stimulant to Profits jobs. G E

T ngola, a vast land flowing with oil and T Y rich in diamonds, is also home to a lit- Atle known amber nectar that those who taste it deem priceless: its beers. In fact, beer is so popular here that the southwest African country is considered to be one of the top markets on the continent. “We are per capita one of the biggest consumers of beer in Africa,” says Ari de Carvalho, head of Angola’s National Agency for Private Investment (ANIP). “All you have to do is look at the number of brands on the market and also the range of breweries already established in Angola.” Although supermarket shelves, bars and restaurants are well stocked with plenty of imported brands, those in the know will usu- ally favour Angolan lagers produced by local breweries. Lighter, fizzier and usually con- S I B

taining less alcohol than beers from abroad, R O C

36 SONANGOL UNIVERSO SPRING 2005 37 Angolans reckon that the local brews go down activity after its once thriving industries were away from the other brands. whisky or caiparinha are too strong to gulp better than the imported varieties. abandoned during the civil war. Beer was to In and around the capital, getting beer to down. But a beer really satisfies my thirst,” he “We are per capita “Angola makes beer that Africans in gen- give it a second chance. Cuca, considered by the consumer is not a problem, thanks to the adds. one of the biggest eral like,” says one Luanda-based lager many to be Angola’s “national” beer with its reasonably efficient transport network. But all Even imported brands such as Heineken consumers of connoisseur. “It’s light and fresh. We Angolans distinctive red and orange logo, reopened its producers, including those in other industries, and Portugal’s Cristal, which may carry more beer in Africa, All don’t like strong beer because we like to drink factory doors around three years ago and has face the same logistical challenges when it kudos with the image-conscious, often take a lots of it,” he laughs, toasting the local industry directly created more than 300 jobs for the comes to meeting demand from elsewhere in back seat to the lighter and cheaper local you have to do is with a freshly poured glass. local population. the country. brews. “I can drink any Angolan beer, but I like look at the With such strong domestic demand, beer The plant has also spurred knock-on ben- The war left deep scars on the country’s Eka best,” confides another beer enthusiast. number of is becoming a thriving and profitable industry efits for the local economy with carpenters, infrastructure, making many roads impassable, “That said, all Angolan beers are light enough and the range on offer is constantly expanding hairdressers and a host of other small busi- particularly for heavy goods vehicles. The gov- to take away the thirst and you can drink plen- brands on the with new names popping up. More established nesses springing up and contributing to the ernment is acutely aware of the problem and ty of them without feeling the effects of the market and also the and larger brands such as Cuca, Eka, Nocal increasing prosperity of the region. has made the rehabilitation of roads and rail- alcohol.” and Ngola are already providing thousands of According to brewery director Philippe ways one of its top priorities for 2005. range of breweries With Angola’s economy today one of the Angolans with much-needed jobs, often in Joyeux, business is exceeding all expectations. Nevertheless, the beer industry is continuing already established fastest growing in the world, there is also huge regions of the country untouched by the bene- The factory delivered around 500,000 hec- to grow slowly but surely and, aside from the interest from both local and foreign investors, in Angola.” fits of the flourishing oil industry. tolitres in 2004, and while Mr Joyeux expects obvious economic benefits to the country, beer eager to capitalise on the potential of the This is good news for the government, sales to continue booming, he admits that lovers are also keen to stress the more tangible Ari de Carvalho, lucrative local market. The beer industry is no keen to reduce poverty and improve the lives keeping up with demand is currently the pleasures of downing a glass or two. Administrator, ANIP. exception. “We receive quite a lot of enquiries of the population by creating employment and biggest challenge he faces. With summer temperatures in Angola eas- re-launching the non-oil sectors of the econo- “We started off marketing Cuca in ily soaring into the mid to high 30s, the from overseas companies interested in setting my. “This is what our poverty reduction Benguela, but today more than one third of average soft drink or glass of iced water often up breweries,” says ANIP’s Mr de Carvalho. programme is all about. It’s not just to give our produce goes to far-off provinces,” Mr fails to hit the spot. For one beer aficionado, Some are even starting to suggest that people food, but to increase employment and Joyeux reveals, adding that its market also enjoying the sea breeze in a Luanda beach bar, Angolan beer, already a big hit at home, could increase production so that families can have takes in the provinces of Huambo, Huila this is the only real antidote to a long swelter- soon join the ranks of oil and diamonds as a a means of survival,” said finance minister and Bie. ing day and the ideal accompaniment to a new source of export revenue. “We’ll need to Jose Pedro de Morais in a recent interview. Cuca, and several other of the big-name balmy summer evening. totally satisfy our local demand first,” says one Nowhere have the economic and social breweries, also have production facilities in “When you’re feeling hot and sweaty after beer industry source. “But I can definitely benefits of the beer industry been felt more Luanda, where signs of competition are clearly a hard day’s work, there’s nothing better than a envisage a day – perhaps in the not too distant strongly than in Catumbela. Not so long ago, visible. Beer advertisements are splashed cold, light beer to make you feel revitalised and future – when Angolan beer will be considered this sleepy town in southern Benguela across many of the city’s billboards, all of them relaxed,” he says. “A glass of Coca-Cola just an exotic imported brand in foreign province was deemed a backwater, with little attempting to entice the discerning drinker doesn’t have the same effect, while drinks like countries.” ❖ B I L L B O A R D

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SPRING 2005 39 O

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: S O T O H P Life’s a Beach

s the summer sun beats down on the scorching paving stones of Luanda, workers in the capital Adream of escaping the searing heat of their offices, shedding their shirts and ties and kicking back on Luanda’s Ilha do Cabo. While temperatures soar into the mid to high 30s, and the stifling humidity of the “tempo do calor” (hot season) awraps the city in a blanket, the Ilha provides a welcome sanctuary. The cooling sea breezes and refreshing Atlantic waves define the Ilha (island). Here the smell of summer is sweet- er and the pace of life more manageable than in hectic downtown Luanda, just a stone’s throw away. First-timers to Angola will probably imagine they have to take a boat to get a taste of this island life and, indeed, it is not that long ago that the Ilha was separated from the mainland by a L O G

N swirling sea. A

N Luanda’s antidote to the O S “I’m from the time when the Ilha was a real island, F O

Y S

E with just a wooden bridge connecting it to the rest of T R

U long hot Angolan summer

O Luanda,” says Ilha businessman Antonio Pataca, reminisc- C

O T

O ing about days gone by. Today, the nine-kilometre jetty is a H P is a beach culture that is peninsula, easily accessible by a road leading from the cap- determined to rival even ital’s seafront, the Marginal. “People used to say ‘we’re going to Luanda’ as if it were Brazil’s legendary a different province,” says Mr Pataca. “The two were brought together at the end of the 1960s, but the people Copacabana for hedonism, here were never very happy about it.” The Ilha people have historically been dependent on vibrancy and laid-back the offerings of the sea for their food, their health and well- being and, to the more superstitious, even their good lifestyle. fortune. They are to a certain extent a people apart. “The

40 SONANGOL UNIVERSO SPRING 2005 41 community here is like a family. We have our For non-residents, too, the Ilha is a special one pilot to a passenger stepping off the small the Ilha. It’s a total escape,” says Ana de own distinct culture identified only with the place, particularly in the sticky summer aircraft. Oliveira. “By the time Monday comes round “The community Ilha,” states Mr Pataca. months. Even when traffic is bad visitors can From this stunning bird’s eye view, the Ilha again, I’m relaxed and raring to go for another here is like a family. This neighbourhood invites the rest of the be enjoying the island’s treasures within half resembles a long comb of sandy coves separat- week,” she adds. capital to join in its annual Festa da Ilha in the an hour. ed by rocky outcrops and flashes of lush green Many visitors are struck by the similarities We have our own second week of November when it pays hom- “When it’s finally that time of year – the from its blooming shrub gardens. Down below, between Luanda’s Ilha and Rio de Janeiro’s age to the kianda, or mermaid. end of the kassimbo (winter) – when the weath- the cars stream past the dramatic Fort Alesa, Copacabana. The weekend sight of hordes of distinct culture “Ilha fishermen think mermaids have er is heating up and I feel the sun on my skin, I an imposing, freshly painted citadel which “body beautifuls” clad in brightly-coloured, identified only with power over fish, over their lives. During the fes- know the Ilha is the best place to go. What’s stands proud against the vivid blue of the sum- skimpy bikinis certainly conjures up images of tival we lay out food and drinks on the beach more, it’s right on our doorstep. We’re really so mer skies. catwalks in culturally-close Brazil. Whether the Ilha.” and the next day they disappear,” Mr Pataca lucky,” says office worker Ana de Oliveira. As they pass this gateway to the Ilha, sun- showing off voluptuous curves or rippling explains. “People say it’s the mermaid who Seen from the air, the Ilha is truly impres- bathers and partygoers breathe a collective muscles, the Ilha’s beaches are the perfect Antonio Pataca, Ilha businessman comes to take it.” sive. Some pilots like nothing better than to sigh of relief as they leave mainland Luanda place to see and be seen. The significance of this ritual runs deep, skim over its beaches as they approach the behind them. There is no place better and clos- But whatever takes your fancy – be it curl- with the kianda called upon to bring luck and capital, almost surfing the waves before touch- er than this to soothe away the stresses and ing up with a good book, snoozing under the success to every new business venture. “When ing down. “We don’t usually fly into Luanda so strains of the working week. shade of a parasol, or more energetic activities something important is inaugurated here, peo- low. It’s not our normal approach, but I thought “Day-in, day-out, I’m stuck in the office, so such as sailing and beach volleyball – the Ilha ple go and ask the mermaid for her blessing, you would enjoy seeing the city and especially when Saturday comes I can’t wait to pick up has something for everyone. “It has become a for good luck,” Mr Pataca says. the Ilha from such a spectacular angle,” says my towel, my bikini and suntan oil and head to bit of a ritual. We try to play volleyball here on G E T on their boards, sampling the secrets of its captivating seas. “The moted here because it’s very cheap. You just need a simple board T

Angola’s superb waves Y

I M

A earliest surfing in Angola was in 1974 when a guy called Randy which could easily be made locally,” he adds. It’s not just the surf G E have long been a well- S Rarick was travelling around southern Africa and drove up to that brings in the punters but the whole beach experience, includ- kept secret among surfing Angola,” Norris explains. ing night-time fires, barbeques and being lulled to sleep under the Surf’s’s Rarick, one of the founders of the Association of Surfing stars by the crashing waves. fanatics, but now a Professionals, was bitten by the Angolan surf bug but had to leave “To me it’s like a social surfing adventure because you’ve about six months later because of the war. swelling international band got food, your campfire and you’re surrounded by a lot of people “During the 1970s, ‘80s and ‘90s, you only had occasion- of devotees is finding its from different countries,” says 29-year-old Portuguese-born Nuno al surfers in Angola because travelling around was always a de Azevedo, who has been surfing in Angola since 1994 and is way to the isolated Up problem,” says Norris. Paradoxically, the conflict also made surf- considered a veteran. Atlantic beaches. ing a pastime prized for its rarity. “That’s what’s always been nice about surfing in Angola – Despite all the attractions, most say it will be a long time very few people surfed because of the insecurity. It’s a unique before surfers off Angola’s shores have to queue up for the waves ust an hour’s drive south of Luanda lies spot,” he says. “Surfers like the idea of searching out places off as is often the case in more revered spots. “It’s not like Hawaii one of Angola’s best-kept secrets. At the the beaten track and away from the crowds. So in that sense, surf- where you have people saying ‘this is my beach, you can’t surf Jsouthern tip of Cabo Ledo, a beautiful ing in Angola has always had a certain caché,” he adds. here,’” says De Azevedo. and isolated beach village offers some of the The passion for the sport among both Angolans and for- Perhaps your only company will be a flying fish, a gliding finest surfing waters in Africa. eigners is certainly growing, and it was given a fresh lease of life turtle or other friend of the seas. “On two or three occasions I have Englishman Richard Norris is regarded as an authority on This relatively undiscovered spot, with its dramatic cliffs and in 2003 when Rarick was reunited with the Angolan waves after surfed with dolphins,” says one avid surfer. I have looked down, surfing in Angola, having lived, worked and surfed in the country mile-upon-mile of fine white sand, has for decades drawn a small more than 25 years away. His emotional return was a massive and there’s been a dolphin swimming with me, just three or four but expanding surfing pack. “When you’re on your board, surfing for more than four years until 2000. He extols the virtues of its media event, splashed across local newspapers and international metres away. It’s superb, an exceptional moment,” he says. a wave, you get a complete feeling of perfection. It’s almost nir- surf areas on his website – which can thank Angola for its very surfing magazines. It also helped lift the profile of Angola as a What started as a select sport is now edging into the main- vana,” says one Luanda-based fan. “I don’t know how I would existence. world-class surfing location. stream, with dedicated surfers seeking out the next virgin territory survive without my surfing weekends in Cabo Ledo.” “I took some photographs of the surf in Angola which Today at Cabo Ledo, village children flock to the beach on Angola’s shores. Cabo Ledo is only one of about a dozen little-known surf nobody back in Europe had seen before and I wanted to show every weekend in the hope of borrowing a board to test the havens dotted along Angola’s Atlantic coast. Some, like the them to my friends. They put them on the Internet and the site, wan- waves for themselves. “We’ve given the kids some of our old “My favourite places are Cabo Ledo and Cabo Saobras Shipwreck beach, named after the capsized vessel that dominates nasurf.com just grew from there,” he recalls. It is now one of the boards and they’re coming to surf with us now. They’re getting which is for more experienced surfers,” says one. “And then there’s its skyline, and Buraco, are just a stone’s throw from the capital. most popular surfing websites in the world. really good. Surfing is starting to get more popular among the another secret spot which I’ve just discovered. But I’m not going to For the more adventurous thrill-seekers, Quicombo, and Sumbe But even twenty years earlier, well before Norris had ridden locals,” says one Cabo Ledo enthusiast. share that one with you. I’m going to keep that one to myself for with its bigger waves lie further afield. his first Angolan wave, the pioneers of Angolan surf were already “At the moment it’s an imported sport but it could be pro- now,” he adds, with a cheeky grin. ❖

42 SONANGOL UNIVERSO SPRING 2005 43 Now Luanda’s diners can enjoy the authentic taste of India – with dishes prepared in the traditional manner by a team of chefs Some specially brought in from the subcontinent.

he latest addition to the Ilha’s bustling restaurant strip is bringing new and texotic flavours to Angola’s capital. Like it Combining the traditional flavours of the east with the warmth of Africa, O’Caril is an Indian restaurant with a distinctly authentic yet modern feel. With its mirrored interior, classic embroidered tapestries and giant, round lanterns casting a playful light across the vast dining area, it provides a refreshing alter- native to the peninsula’s other beach-front eating houses. Hot BEACH ART: This top-end restaurant, which opened in October 2004, is the brainchild of husband-and-wife team Mansur and Narmin Kassam, who have a long histo-

E A lively mural catches the carefree

N

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S ry of introducing the pleasures of India to the African continent.

A spirit of the Ilha do Cabo

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I “Our priority and our whole perspective is to help Luandans understand

E

H P

O what Indian food is all about,” says Mansur, taking time out after laying out the

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H sumptuous lunchtime buffet. “Indian food doesn’t just mean gindungo or chilli. C It’s all about the spices we use to bring flavour to the dishes,” he adds. The dynamic couple, who have owned restaurants around the world, say Luanda was the obvious port of call for their next venture. “It’s such a beautiful “When the weather is heating up and I feel the place, especially now there is peace – and Luanda is the only city in the world that I knew of without an Indian restaurant,” Narmim says. sun on my skin, I know the Ilha is the best place To ensure that distance will not diminish the authenticity of the food, the to go. What’s more, it’s right on our doorstep. duo has even flown in four chefs all the way from India. “Our chefs are work- We’re really so lucky.” ing with Angolan cooks and we’re hoping that they can pass on the secrets of Indian cuisine,” says Mansur, who personally checks each and every dish for Ana de Oliveira, Luanda office worker flavour and presentation as it leaves the kitchen. True to his word, Mansur cooks in traditional clay pots – also brought in from India, and while fresh vegetables are bought locally, the more unusual spices, and sack upon sack of top-quality basmati rice, also arrive by air. As Mansur dashes off for his daily trip to the market to seek out the freshest the beach every Friday afternoon. It kind of “We love to come here to party,” says 23- ingredients for the evening menu, his wife, Narmin, dressed in a royal blue marks the start to the weekend,” says one inter- year-old Sandro Cardoso. “Especially in the business suit, takes over. “Mansur is in charge of the kitchen but I take care of national aid worker, living and working in the heat of summer when even the nights are hot the guests and manage the waiting staff out here on the floor,” she explains. capital. and sticky, it’s great to be by the ocean.” Thus Narmin is the face most familiar to customers. Charming and atten- Even at the crack of dawn, capoeristas More modest options for a night out can tive, no table will be forgotten as she glides through the 200-capacity (practitioners of the Afro-Brazilian martial art) be found along the bay-facing side of the Ilha. restaurant, almost swaying to the Bollywood-style pop videos playing on a can be found practising their graceful moves Traditional churrasco – barbecued squid, large screen. on the sand as the waves lap up at their feet. chicken and fish – grilled to perfection are an She is dedicated to broadening the palates of Angolans, introducing them But it is when darkness descends that the Ilha ideal snack for lovers taking a stroll along the to the likes of Butter Chicken, Lamb Rogan Josh and Prawn Curry in Bengali truly comes to life, with the night crowd flock- beach or boys hungry after their intense beach Masala – just three of the 50-plus dishes on the menu. ing to the dozens of restaurants and lively football. “Angolans have an idea that Indian food is very hot and spicy. But once beach bars, drinking and dancing until the Whether kicking back with a cool beer at a they try it, they really like it very much,” Narmin says, brimming with enthusi- small hours. local beach café, or sipping a zesty lime caipir- asm. “We prepare all our dishes medium-hot but we can tailor our recipes if At the upmarket Coconuts restaurant, the inha cocktail at one of the more luxury customers want something hotter or different,” she adds. chef serves up local fish and seafood caught establishments, everyone agrees that the Ilha is Foreign residents and visitors, more familiar with Indian cuisine, have been near its own private beach, coupled with more the perfect spot to watch a warm red sun dip flocking to O’Caril – but at weekends, when the rooftop terrace plays host to western fare such as steak au poivre and salads. towards the ocean. belly dancing and barbecues, the atmosphere becomes truly international. “At Nearby, the recently renovated Miami And as it leaves behind its glow over the these barbecues, we combine Indian, Angolan and international food,” says Beach has a reputation for being the best city, the feel-good factor will linger all the way Mansur. “There is something for everyone.” Sunday night out in town, serving cocktails and home and through the working week. If it The Kassams have big ideas for O’Caril’s future, with plans to open take- playing lively kizomba music and disco vibes doesn’t, the option is simple: Come back next away “O’Caril Express” points across the city. Ilha, as the hub of Luanda’s until daylight. weekend! ❖ entertainment scene, is just the beginning. ❖ S I B R O

44 SONANGOL UNIVERSO C SPRING 2005 45 style

Internet and a natural feel for fashion. It is still early days for retailers, but random, Brazilian and Portuguese telenovelas (soap often nameless, shops are popping up in operas) on Angolan television are also perfect wealthy residential areas while the downtown showcases for fashion. Angolans take the best Mutumba-Ingombota area now has more than of each – the wildness of Brazil and the tradi- one chic fashion store. Rua Rainha Ginga, for tional stylishness of Portugal, then zip it up example, the address of De Beers HQ Angola, with in their own sassy attitude. currently serves as a thread linking the best of But the number of fashion shops in evi- these: Casa Paris at number 51, Mahinda dence in Luanda is in no way proportionate to Prestige at 67, and Anda Mais at 115 are all the number of fashionable young things catch- well worth a look. ing all eyes in the capital. In fact, most Currently, with the exception of Mahinda lower-price fashion shopping is done on the Prestige, all shops that do exist, only sell Chic street. High Street-style fashion comes in from imported stock from Brazil, China, India and, China as well as Brazil and is sold by young to a lesser extent, Europe and the USA. But guys and girls on major traffic routes. whether decked out in the latest figure-flash- with So while you wait for the lights to change, ing fashion from across the Atlantic or more you can acquire a hot new look for the night classic casuals such as Wrangler, Angolans ahead. All types of shoes – from men’s leather have a knack of looking hot across all seasons. COOL STYLE: loafers to women’s strappy stilettos – as well as “Angolans have natural fashion sense and The eye-catching Angolan jeans, skirts, lingerie and accessories to match they now have the chance to explore the world designs of Luanda designer, are available from your nearest traffic jam. and reap the rewards of global fashion,” says Mariama Conus are inspired And, as the summer blazes on, 30 years of Paula Rousseau, of fashiontv Angola. Attitude by influences from all over heavy-duty security grilles are slowly melting This aside, it’s still pretty much impossible Africa, as well as India, away from shop windows, revealing happy to find ready-to-wear Angolan-made fashion. Arabia and Asia. times ahead for the intrepid fashion shopper. But industry experts enthuse that if the fash- P H O T O S :

J O S E

S I L V A

P I N T O

Alive with ideas inspired by foreign TV here is something special about Angolans programmes and magazines, Angola’s and the way they wear clothes. It is not youthful fashion scene is becoming Tuncommon, for example, to see a woman in a formal dress boarding an overcrowded increasingly aware of the vibrant kandongueiro (taxi) on her way to work. She is completely at home, as though she were walk- influences closer to home. ing a red carpet, not the muddied footpath. t Then you’ll see a youngish guy in a floppy sunhat that your grandmother would love, a toddler with a bared Britney Spears-style midriff, or a couple in matching hot-pink jeans. It may sound lurid, but Angolans pull off fashion fantastically. And in the capital, Luanda, they learn to look good from a very young age. Despite Angola’s dislocation from most of the world due to almost 30 years of war, global fashion influences were not halted at its bor- ders. They continued to come, courtesy of satellite television (MTV in particular), the

46 SONANGOL UNIVERSO ion industry was to take off, Angola could to design, but they do have the innate ability Angola, which was launched on January 22, 2005 “There is definitely experience a boom to rival oil! While that may to conceptualise with flair.” by fashiontv Portugal. Keen to do all she can to talent here. The be a tad optimistic, it does give a sense of just Young designer Wuamby Wassaky is typi- boost the local industry, her aim here is to show- how good these dedicated fashion aficionados cal. Having learnt to sew by watching his case Angolan fashion to as wide an audience as designers need are. mother (who learnt by watching her father), possible. schools and Angola’s fashion shows are glamorous – Wassaky creates sexy urban wear for men and Perhaps, then, the future requires starters investment, but there are two fashion weeks a year, in March women with anything he can get his hands on. such as Yana Van-Dunen, who designs fresh and and October – and Moda Luanda every Recycled military camouflages or grain bags funky modern African looks, after studying for they do have the January. The shows offer designers a sense of are cut in with swishy silks, African prints and four years in Portugal at the Instituto Superior innate ability to their industry, media exposure plus the chance clean cottons. The look is edgy European das Belles Artes. Yana’s plan is to get a line of conceptualise to get private commissions from individual street-and-beachwear. credit, then get beyond the level of just having a clients, arranged afterwards via mobile phone However, local designers are not inspired couple of samples after six years as a designer. with flair.” and meetings at the designers’ own homes. in the short term by international trends, but “In general, boutiques won’t sell Angolan “There is definitely talent here, but the by the fabrics and accessories available to clothes. We know we have the talent, now we Karina Barbosa, Talentos Magazine designers need schools and investment,” says them – and while Angolans look great in pretty just need the backing. I think Angola can do Karina Barbosa of Talentos magazine. “They much everything they wear, some designers great things in fashion,” she says. learn how to sew by seeing their parents sew at would like to see them in more African styles. And why not? Style runs in their genes. ❖ home. They try to develop designs from ideas According to Senegal-born Luanda-based they have in their heads. It’s not as if they learn designer, Mariama Conus, to kick off the strap- py shackles of its European influences and be bolder about being African, about being O T N I

P Angolan, would really benefit local designers.

A V L I

S “The fashion industry is growing here, but

E S O J

: Angolans are shy to wear African designs,” says S O T

O Mariama Conus, whose designs are sold in H P Mahinda Prestige. “This is something that real- ly is particular to Angola. Other African countries are not like this. Angolans have had to behave like Europeans for a long time, in a situation where anything African was seen as bad; the language, the dress, the food, every- thing. But now they can be proud to be African. If trend-setters and role models are seen to wear African clothing, other Angolans will want to wear it too.” Mariama is putting her money where her mouth is. She is a fabulous example, leading the way, by dressing ambassadors and movie stars who are constantly in the public eye. Mariama herself dresses in “African” clothing, even if it is a European silhouette with African details. Her own designs are based on the African boubou, where influences from other African countries such as Morocco are woven together with Indian, Asian, Arabic and homespun Senegalese inspirations. Embroidered neck- lines and long, fluid butterfly-shaped lines where one-size-fits-all in a shock of full or dra- matically contrasting colours are typical of Mariama’s one-off creations. Her tunic-and- trouser combinations also have these trademark features. Passionate about fashion and Africa, Mariama is lending her expertise to fashiontv

SPRING 2005 49 48 SONANGOL UNIVERSO sport

He is just one of thousands of victims to hero, entitled Cançao do Heroy (The Hero’s have been maimed by these killer devices. But Song). “They played it at the airport when I unlike many others, he has succeeded in turn- landed in Luanda. I wasn’t expecting it. It was ing his life around since the accident. It was a surprise, but it made me feel really happy,” during his long stay in a Luanda hospital that he says. Sayovo started running – and discovered he Keen to offer inspiration to other land- had a talent for it. mine victims and a nation rebuilding after the “Before then, my sport was always foot- end of its long conflict, Sayovo has been a busy ball,” Sayovo says, proudly sporting Angola’s man since he returned from Greece. In red and black national soccer jersey. The early October, he travelled to central Huambo days on the track were not easy, he recalls province where he was greeted by hundreds of emotionally. “Walking without my sight was adoring fans and is already preparing several hard enough and I’d never seen a blind man other provincial trips. run. At first, I kept thinking I’d fall into a pot- “They want to see Jose Sayovo in the hole or bump into a tree,” he says, wearing his flesh,” he says. “I want to tell them to have trademark dark sunglasses. courage, faith and to believe in what they do But Sayovo, encouraged by his trainer, and what they think. Being disabled doesn’t persisted, and was soon invited to take up the mean that life is over,” he adds. sport professionally by Angola’s Paralympics Admitting that reaching the top of the committee. He went from strength to strength, sporting ladder because of a landmine inci- winning his first gold medal in the national dent is bittersweet, Sayovo remains confident A N D

Y cross-country race in 2000 and becoming about the future.

L Y O

N world 400-metres record holder in the 2003 “The world must resolve this problem of S / G E T

T World Paralympics Championships in Canada. landmines. They are hurting societies and peo- Y

I M

A Finally able to achieve his dream, Sayovo ple, not just in Angola but also in other G E S

S

P joined the Angolan squad of four athletes who countries in Africa and the rest of the world. O R T travelled to Athens to compete, for the first “I am happy that de-mining work is time, in the Paralympic Games. Wiping his being done and I believe that with more incen- brow with a handkerchief, this father of two tives to stop landmines, people will one day be Blind admits that simply thinking back to the able to walk in villages and the bush without moment he won his first gold medal – in the having to worry about where they step,” he ecoming a sports hero overnight has changed 100 metres – makes him very emotional. says. ❖ Sayovo’s life for ever, providing him with his own “It was only a few minutes after the end of Bhome, car and comforts beyond what those he had the race, when my guide kept on telling me courage ever hoped for. ‘We did it’ that I realised I was the winner. But this 31-year-old, who seems to have it all, is Then I started hearing the crowds in the stadi- Propelled to the top of missing one thing: his sight. um. They were shouting ‘Angola! Angola!’ and the international sporting Paradoxically, it is this disability that led him to take clapping like mad,” he recalls. “It wasn’t easy, up running, to qualify for the 2004 Paralympics in but I kept my composure, I didn’t cry.” ladder despite – or, in Athens, to win three gold medals in the 100, 200 and 400 Coming first in the 200 and 400 metres fact, because of – being metres and to become world record holder in all three. sprints just days later sealed Sayovo’s status as Winning these titles sparked international acclaim and one of the world’s top disabled athletes, and a maimed by a landmine, has made Sayovo one of Angola’s biggest home-grown hero in Angola. Today, he is constantly sur- Angolan Paralympics stars. rounded by adoring fans, family and friends, victor Jose Sayovo is an Sayovo lost his sight six years ago when as a soldier to whom he has opened his door and his he was travelling by truck into Mbanza Congo, the capi- heart. inspiration for all Angola’s tal of Zaire province. The vehicle triggered an anti-tank “I really don’t mind all the visits,” he disabled. mine in the road and the next thing Sayovo remembers says, as yet another person arrives at his house is “the nurses asking me if I knew where I was.” in the Nova Vida residential complex on the He told them that he thought he was in a hotel in outskirts of Luanda. “It makes me feel good Mbanza Congo and asked them to switch on the lights. that people come here and share in my happi- ‘“They are already on’ they told me, and that I’d been in ness.” J O S

a landmine accident. I realised that it was dark because The homage to Sayovo has not stopped. E

S I L V I couldn’t see and that’s when I started to cry,” says Angola’s semba singer Dom Caetano has even A

P I N T

Sayovo. launched his own serenade to the national O

50 SONANGOL UNIVERSO SPRING 2005 51