ISSUE 8 WINTER 2005 UniversoANGOLA | OIL | BUSINESS | CULTURE ANGOLA CELEBRATES 30 YEARS OF INDEPENDENCE IN CONTROL Sonangol’s offshore development strategy ■ COLD COMFORT Norwegian oil technology benefits Angola ■ THIRTY YEARS ON What it means to be Angolan ISSUE 8 WINTER 2005 INSIDE SONANGOL New Horizons But no one who has lived in Angola dur- ing the last three decades would pretend that Thirty years is a big part of any life – a time it has been an easy experience. Even in the when it is appropriate to reflect on targets met context of the many tragic episodes that have and lessons learnt. But it is also a moment when befallen this continent, Angola’s tribulations the foundations of future goals can be prepared stand out. TENTS and new endeavours conceived. But still shining through is the spirit of a During this period, Angola has been in the nation with a culture that goes back thousands vanguard of cutting edge offshore exploration of years, and in this issue of Universo we technologies, which were vividly presented to the examine just what it means to be Angolan, and international oil industry at the prestigious World present an optimistic view of the future as seen Petroleum Congress in Johannesburg through the eyes of two of its young people. In these projects Sonangol has enjoyed the On this momentous anniversary we reflect CON benefits of experience gained by the major production compa- on the past and embrace the opportunities of the future as nies in other parts of the world, just as in the fullness of time, Angola sends greetings to the world – as a country at peace. the important knowledge gained in our deep waters will be of value on new frontiers of exploration elsewhere. --The Editor 8 14 INSIDE ANGOLA 18 24 28 38 Sonangol Rua 1° Congresso do MPLA, N.º 8-16 Caixa Postal 1316, Luanda República de Angola Tel: +244 2 391 182 Fax: +244 2 391 782 Telex: 2089 SONANG AN [email protected] Sonangol USA (Sonusa) 1177 Enclave Parkway Second Floor 32 44 Houston,TX 77077 USA Tel: +1 281 920 7600 Fax: +1 281 920 7666 28. Spirit of Renewal 38. Birth of a Nation 44. Written in the Sand [email protected] Home to more than four million people, On the 30th anniversary of independence, As Angolans embark upon a new era of Sonangol UK and seen increasingly as a major economic and with traumatic internecine conflict optimism, a part of their ancient heritage Merevale House hub, Angola’s capital is already much more behind them, the people of Angola have communicating timeless realities is set Brompton Place London SW3 1QE than a vibrant regional commercial centre an appreciation of their national identity for a revival United Kingdom 8. Reaping the Benefits 18. African Triumph Tel: +44 207 838 4600 32. Day to Remember 42. Independent Spirits 50. Yes, We Have Bananas Fax: +44 207 589 9454 Angola and Norway have enjoyed close relations The 18th World Petroleum Congress held in Pivotal moments of history are often illumi- Following independence, few Angolans Luanda is a city that seems to be inundated Telex: 893212 SONANG for many years, which are now blossoming into South Africa from September 25 – 29 offered an nated by a single day that crystallises a could have foreseen the years of conflict with bananas. On almost every block there alliances focused on tapping into the oil-rich impressive line-up of speakers and presentations Sonangol Asia series of events. Such a day was when to come – least of all the young people is another zungueira balancing a basket of 3 Temasek Avenue reservoirs lying offshore Angola as well as Africa’s biggest oil and gas exhibition 31-04 Centennial Tower Angola became an independent state who had never known colonial rule fruit on her head Singapore 039190 Tel: : +65 64 16 3583 Fax: +65 64 16 3582 14. Block Purchase 24. Covering the Risks Sonangol Department for Communication & Image –– Director: João Rosa Santos; Corporate Communications Assistant: Cristina de Novaes In the wake of its recent corporate restructuring, Hurricanes Katrina and Rita highlighted nature’s This magazine is produced for Sonangol by Impact Media Global Ltd, Amadeus House, Floral Street, London WC2E 9DP,UK, Tel: +44 20 7812 6400~ Fax: +44 20 7812 6413 Sonangol takes its first steps as a conventional power to disrupt offshore activities, but while Publisher: Sheila O’Callaghan; Group President: John Charles Gasser; Project Consultant: Nathalie MacCarthy oil company with the takeover of the operator- Angola’s oil and gas projects present few prob- Editor: Peter Moeller; Sub-editor: Ron Gribble; Art Director: Lisa Pampillonia; Advertising Design: Bernd Wojtczack; Circulation Manager: Tony Adkins ship of Block 3 lems of the Gulf, some unique issues do exist Contributors: Leif Biureborgh, Cornélio Caley, Zoe Eisenstein, Cathy Hamlin, Karen Iley, Bruce McMichael; Cover Images: Oil rig: Ed Gifford / Masterfile, Flag: Alamy 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 US supermajor Chevron expects first oil from its Benguela- Let the Bidding Intelligent water Belize tower in Block 14 in the Commence… Injection Lower Congo Basin, offshore Exploration for oil and gas offshore – WellDynamics, the Angola, in December this year. and onshore – Angola has been given a sub- Aberdeen-based intelligent com- Chevron estimates the block holds stantial boost. pletion oil wells contractor, has 1.5 billion barrels of oil. As concessionary holder, Sonangol has signed a multi-well contract with The Scomi Group, Malaysia’s announced a public tender to attract bids for BP for the provision of its offshore services and engineering a number of prospective offshore blocks. The SmartWell downhole flow con- company, has opened an office in offer includes shallow water opportunities in trol and ancillary completion Angola to market its range of blocks 1, 5 and 6, while in deeper waters Kissama Sponsorships equipment to manage water drilling fluids and waste manage- Block 26 will be opened for bidding along International energy company sponsorship is set to injection in the oil-major’s deep- ment services. The fast growing with selected, as yet unclaimed, areas of play a leading role in restoring Angola’s wildlife popula- water Greater Plutonio company is focusing on drilling blocks 15, 17 and 18. Bidding, invited from development. The multiple and offshore support services and tion in partnership with the Kissama Foundation, which national or international oil companies, closes SmartWell contract award fol- sees Angola as a strong market. manages the one-million hectare wildlife reserve. at the end of 2005. Instructed by the government to rebuild wildlife popula- lows approximately four years of Aberdeen-based PSL Energy Angola is also set to reopen the onshore tions, the foundation is currently working to re-establish detailed pre-project planning Services has landed a $5.3 million Kwanza oil basin to licensing rounds between the giant sable – national symbol of Angola – with the and tendering processes. contract to provide topsides, sub- the end of 2005 and early 2006. The basin help of oil company donations. The Greater Plutonio Project sea and umbilical operations for was abandoned in the 1970s and its complex lies in Block 18 and currently Technip on Total’s Dalia project, Three years ago, Shell Angola provided most of the geology has until now discouraged explo- funding for a mass relocation of wildlife known as includes development of five located in Block 17, 230km off- TIM TEEBKEN/GETTY ration of its hydrocarbon reserves. deepwater fields, Plutonio, shore Angola in waters of up to Operation Noah’s Ark. Sonangol has helped with park The prospective Kwanza basin lies some 60km from Luanda and the Ministry of Petroleum is Cobalto, Galio, Cromio and 1,500m deep. infrastructure while Chevron supported the first expedi- looking for foreign investors prepared to work with local firms. Onshore production is expected tion to Cangandala in 2003 to find the giant sable or Paladio, with subsea wells tied BP is to sponsor graduate stu- to start within five years. palanca negra as it is known to Angolans. “The future back to a single FPSO vessel. The dents wishing to study a range of project will require an estimated energy-related subjects at Angola’s of real conservation in Angola is going to be with the 40 wells with approximately Agostinho Neto University in private sector rather than the state sector,” says Wouter equal numbers for oil production Luanda. They will receive financial van Hoven, a South African professor of wildlife man- and water injection. scholarships to fund their master’s agement and Kissama Foundation president. degree level studies. The UK Offshore Simulator Block 13 Find Foreign Office and the Faculty of Preparing Angolan and for- BP, one of the world’s Energy, Oil and Mining Law, eign staff to work on BP’s Block largest oil companies and an Dundee, Scotland, also support the project. 18 development has taken a active participant in Angola’s step forward with the delivery oil industry, has struck oil in a Investing in Relief The French oil-major Total has of an operational training simu- new reservoir in the prolific Higher global oil prices are enabling identified its Miocene Pole Project lator (OTS) by the Norwegian Block 13. Known as Astraea- Angola to invest money in a special reserve in Block 17 as its next top Angola company Kongsberg. The simu- 1, this is BP’s eighth discovery fund created to meet emergencies and unpre- initiative and is inviting contractors lator will be used by BP to train offshore Angola to date.