Angolan offshore first
Transcription
Angolan offshore first
SONANGOL UNIVERSO Universo www.universo-magazine.com MARCH 2014 Angolan offshore first PERFECT PARTNERS: Angola and Norway 7 NATURAL WONDERS: Angolans vote ISSUE 41 – MARCH 2014 ANGOLAN ROCK: Captivates the critics INSIDE: oil and gas news Universo is the international magazine of Sonangol Board Members Francisco de Lemos José Maria (President), Anabela Soares de Brito da Fonseca, Ana Joaquina Van-Dúnem Alves da Costa, Fernandes Gaspar Bernardo Mateus, Fernando Joaquim Roberto, Mateus Sebastião Francisco Neto, Paulino Fernando Carvalho Jerónimo Sonangol Department for Communication & Image Director Mateus Cristovão Benza Corporate Communications Assistants Nadiejda Santos, Lúcio Santos, Sarissari Diniz, José Mota, Beatriz Silva, Paula Almeida, Sandra Teixeira, Marta Sousa, Hélder Sirgado, Kimesso Kissoka Publisher: Sheila O’Callaghan Editor: John Kolodziejski Managing Editor: Mauro Perillo Art Director: Tony Hill Sub Editor: Brian MacReamoinn Proofreader: Gail Nelson-Bonebrake Made in Angola Circulation Manager: Matthew Alexander Production Assistant: Sebnem Brown Project Consultant: Nathalie MacCarthy Group President: John Charles Gasser Universo is produced by Impact Media Custom Publishing. The views expressed in the publication are not necessarily those of Sonangol or the publishers. Reproduction in whole or in part without prior permission is prohibited. This magazine is distributed to a closed circulation. To receive a free copy: [email protected] Circulation: 15,000 Davenport House 16 Pepper Street London E14 9RP United Kingdom Tel + 44 20 7510 9595 Fax +44 20 7510 9596 [email protected] www.universo-magazine.com www.sonangol.co.ao [email protected] 2 SONANGOL UNIVERSO F ebruary’s SonaExpo 2014, an exhibition on Luanda Bay featuring Sonangol products and services, presented a timely opportunity to take stock of recent local manufacturing developments. The many visitors strolling around the exhibition stalls could verify how Sonangol’s industrial arm, SIIND, is stimulating domestic economic growth and jobs. Over the past 10 years, the government has rebuilt and added to the country’s basic infrastructure and is currently building 200,000 homes. The next logical development step involved expanding local manufacturing to replace imports. This is where SIIND comes in. Since 2011 SIIND has developed 27 factories, which manufacture many of the materials and fittings related to the new houses and urban services such as glazing, paints, and electrical and plumbing materials. Eventually SIIND will have 73 factories employing 14,000 staff. More factories mean more jobs and home comforts for Angolans, who are now able to sleep soundly on locally made mattresses! John Kolodziejski Editor ANGOLA NEWS BRIEFING A roundup of national and international news concerning Angola 5 FIGURED OUT A brief glance at Angola in numbers 6 ANGOLA–NORWAY: A PERFECT PARTNERSHIP Norway’s natural resource development is the envy of the world. We examine how Angola is adopting some of its policy successes 16 ANGOLA’S SEVEN WONDERS OF NATURE Angola is voting on its most popular natural attraction. We survey 6 Peter Moeller 4 Shutterstock Contents the candidates 26 A music genre not normally associated with Africa is the subject of ANGOLA ROCKS THE FILM CRITICS 32 LUANDA’S NEW LANDMARKS Prominent new public buildings are changing the face of the city 36 SONANGOL NEWS BRIEFING Highlights of noteworthy news items from Sonangol EP and its subsidiaries CABULA6 and Coalition Films, 2012 26 Kostadin Luchansky a hit US documentary film. We look and listen 16 40 ANGOLAN INDUSTRY BOOST Angola makes an historic advance in industrialisation with the first installation of an African fabricated and fitted topside module 44 MATCHMAKING IN THE SUPPLY CHAIN How Angola is encouraging international oil sector partnerships 46 SONANGOL RESULTS Angola continues on track to meet its 2015 oil output target; profits remain healthy 32 (c) Total E&P Angola / Kostadin Luchansky 40 MARCH 2014 3 Angola news briefing No.1 for oil investors Angola seat on UN Council ■ Angola’s candidacy for non- Shutterstock permanent membership of the United Nations Security Council was approved by the Nomination Committee of the African Union (AU) in Addis Ababa, Ethiopia, in January. Angolan Foreign Affairs Minister Georges Rebelo Chikoti said with the AU approval, the application will now be submitted to the UN General Assembly for a final vote. Minister Chikoti said the move was evidence that other countries are aware that Angola will be able to represent the continent well in the world’s decision-making body. “It is also a sign that our diplomacy has been growing and is able to respond to what others expect from us,” he added. Angola had previously held a non-permanent post at the Security Council between 2003 and 2004. ■ Angola will attract the most oil exploration investment in 2014 and 2015, according to a report by the Business Monitor International (BMI) consultancy released in January. “We expect Angola will remain as the main destination for investment in the oil industry,” said the report on oil and gas in Angola, which notes that, despite a projected slowdown in oil production, plans for new projects will ensure strong growth in most of the 2014–18 period. BMI also expects annual Angolan GDP growth to average 7.4 per cent until 2018. The report cited Sonangol’s head of integration, Domingos Cunha, as saying that the near future will be busy with the launch of exploration in the country’s pre-salt layer, which Angolan authorities believe has the same huge potential as a similar area in Brazil. “We expect a busy drilling period over the next few quarters, with 32 wells planned in Angola this year, including 15 that will test pre-salt formations,” the report said. President chairs Great Lakes summit Angop ■ President José Eduardo dos Santos 4 SONANGOL UNIVERSO chaired and hosted the International Conference on the Great Lakes Region (ICGLR) 5th Ordinary Summit in Luanda on January 15. The president pledged that he would work for peace, stability and economic and social development in the region as he took over the chair from his Ugandan counterpart, Yoweri Museveni. ICGLR was established in 1994 and consists of 12 member countries in the region. Among the problems it is addressing are armed conflicts in the Democratic Republic of Congo, Central African Republic and South Sudan. Angola news briefing Private investment boom contracts worth a total of $4.7 billion in 2013. ANIP CEO Maria Luísa Abrantes formally signed the approximately 200 deals with company representatives on February 6. Most of the contracts are linked to the sectors of services, construction, civil engineering, industry and trade. Five industrial project contracts signed in early February would create 10,000 jobs, Abrantes revealed. ANIP’s approved investment projects were around 20 per cent higher in 2013 than its target set out in the government’s 2013–17 plan. Lobito port rebuilt and ready ■ The Angolan government has completed the $2 billion rebuilding of the port of Lobito, says the port’s board chairman, Anapaz de Jesus Neto. The government used the money to modernise and expand the port. Improvements included the construction of a minerals terminal, another for containers and a dry port. “All these projects are complete and ready to operate,” he said. Cargo volume through the Port of Lobito in 2013 was about 2 million tonnes, a slight increase of 2.5 per cent compared with 2012. For 2014, the port aims to increase its output even further and expects the entry of private sector operators into the business. FIGURED OUT $4.7 billion investment in Angola in 2013 Angop ■ Angola’s National Private Investment Agency (ANIP) approved New airport on track ■ On February 19 President dos Santos paid a visit to see how construction work is progressing on Luanda’s new international airport. The airport, located 40km from Luanda between the new Zango residential districts and Bom Jesus, is expected to be operational within two years. The giant facility already has completed two long runways capable of handling the world’s largest passenger jets. Most of the main building structures are now in place, including a huge air traffic control tower. Angola in numbers $2 billion cost of Lobito’s port revamp 2,500 tonnes lifting power of Africa’s largest crane, now in Angola 74km length of deep sea cables in CLOV project 1,890 local companies preparing to enter oil sector MARCH 2014 5 INTERNATIONAL ANGOLA–NORWAY: A PERFECT PARTNERSHIP Norway has won widespread respect for raising its people’s living standards to one of the highest in the world. Universo looks at the resource-rich country’s ties with Angola 6 SONANGOL UNIVERSO MARCH 2014 7 Shutterstock The Oslo Opera House Angop INTERNATIONAL S uperficially Norway and Angola have little in common; ice covers large parts of Norway even in midsummer, whereas sunshine bathes Angola in year-round warmth. Despite sharp climatic contrasts, the two countries share some striking similarities in geography and natural resources, says Norway’s ambassador to Angola, Ingrid Ofstad. “Norway, like Angola, has a long coastline with abundant petroleum and fish resources. Norway, just like Angola, has mountains and waterfalls, with potential for hydropower and the development of clean energy. These similarities present a unique opportunity for mutually beneficial cooperation. “Today, Angola is Norway’s biggest and most important economic partner in Africa,” she adds. Norway has similar oil output to Angola at just less than 2 million barrels per day and is Western Europe’s largest oil and gas producer. The country enjoys one of the highest standards of living in the world and is much admired by other developed economies for its comprehensive welfare services and relatively equitable distribution of wealth. Many see it as a shining example of how a country should best manage and distribute its resources. Buoyed by oil sector wealth, Norway is at the top of the United Nations’ Human Development Index (HDI), which ranks countries by their economic and social well-being. The HDI combines data on life expectancy (reflecting health standards), educational levels and standard of living. Sovereign development 4.Netherlands 0.921 5.Germany 0.920 6. 0.919 Central to Norway’s good housekeeping is its sovereign wealth fund (SWF), into which it has been depositing part of its oil and gas revenue since 1990. Norway’s SWF is the world’s largest and is currently worth roughly $820 billion. The government spends income of around 4 per cent a year from the fund, and this helps pay for Norway’s high levels of healthcare, schooling and pensions that are the envy of the world. It also means that Norway has substantial aid available to donate to poorer countries. Norway donated $4.75 billion in foreign aid in 2012, far more than many larger economies. Its donation as a percentage of gross national income is even more impressive at 0.93 per cent. That is twice the amount of leading economies such as Germany (0.38 per cent) and more than five times that of the United States. Inspired by Norway’s example, Angola is also developing a SWF and made an initial $5 billion deposit in 2012. A delegation from Angola’s SWF led by Dr José Filomeno dos Santos visited Norway in October 2013, where it attended a meeting of the International Forum of Sovereign Wealth Funds coordinated by the International Monetary Fund. 7.Ireland 0.916 Diplomatic connection 8.Sweden 0.916 9.Switzerland 0.913 10.Japan 0.912 United Nations Human Development Index 1.Norway 0.955 2.Australia 0.938 3. 0.937 United States New Zealand Source: United Nations Development Programme, March 2013 8 SONANGOL UNIVERSO Norway celebrates 37 years of diplomatic relations with Angola this year. Its first energy sector cooperation dates back to 1980 when Norway helped sponsor the energy secretariat for the Southern African Development Community (SADC), that was first established in Luanda. The Nordic country drew on its experience and expertise in developing Dr José Filomeno dos Santos offshore activities in the North Sea to start oil sector cooperation with Angola in 1987. “Cooperation in the petroleum sector is vibrant and steadily growing,” says Ambassador Ofstad. Several Norwegian companies have set up operations in Angola. For Norway’s leading oil company Statoil, Angola represented around 28 per cent of the volume of its foreign production in the third quarter of 2013. Statoil in Angola Oil is by far Norway’s largest area of cooperation with Angola. Statoil sees Angola as “a perfect strategic fit for Statoil, and the conditions there match perfectly with our strengths built up over decades predominantly in Norway.” The company has been in Angola for almost 21 years and is a partner in eight producing offshore fields, which contribute approximately 200,000 bpd to its portfolio. Angola’s continental shelf is the largest INTERNATIONAL “Today, Angola is Norway’s biggest and most important economic partner in Africa.” – Ambassador Ingrid Ofstad Statoil: Current Angola portfolio Shutterstock contributor to Statoil’s production outside Norway and is a key building block for Statoil’s international production growth, says the company. Pre-salt exploration Statoil sees Angola’s pre-salt region as having high potential, given its geological similarity to a successful exploration area in Brazil. Statoil was designated operator in promising pre-salt areas located in Blocks 38 and 39 in December 2011, where it is partnering Sonangol P&P and thus potentially entering a new and exciting era. The Norwegian company was also awarded partnerships in three other pre-salt blocks (Blocks 25 and 40, both operated by Total, and Block 22, operated by Repsol) in the Kwanza Basin. Statoil is now focusing its main activities on the goal of initial production of the first well around two years after having signed a production-sharing contract. As part of pre-salt exploration activities Statoil, along with Total and BP are undertaking the world's largest ever 3D seismic survey. Statoil is surveying 26,000 sq km of the presalt licence areas off the coast of Angola and has fast-tracked the seismic imaging so as to be able to move quickly towards drilling exploration wells. Norwegian differential Statoil enjoys closer links with Sonangol than most other oil companies, thanks in part to its contribution to developing its operational arm, Sonangol P&P. The Norwegian company sees this partnership with Sonangol as significant, and representing one of the most successful initiatives it has implemented in Angola. It is also a differentiating factor for Statoil compared to other international oil companies. This cooperation dates back to 1999 when Statoil was appointed technical assistant and signed an agreement to provide Sonangol P&P, Block 34 Asset Statoil Stake Block 17 23.33% Block 15 13.33% Block 31 13.33% Block 4/05 20% Block 15/06 5% Pre-salt assets operated by Statoil Block 38 55% Block 39 55% Statoil partnerships Block 22 20% Block 25 20% Block 40 20% MARCH 2014 9 INTERNATIONAL Hammerfest Iron Ore Kirkenes Tromsø Harstad RUSSIA NORWAY 400 km 200 0 OSLO 0 100 Narvik FINLAND 200 miles Bodø ARCTIC CIRCLE SWEDEN Iron & Steel Mo i Rana Fishing /sea port Timber Mining Steel NORWEGIAN SEA Shipbuilding Petroleum Drilling Trondheim Oil field Gas field Kristiansund Mixed (oil/gas) Alesund Flow Maritime boundary National capital City/town Florø NORWAY Brent Oseberg Bergen 250 km 0 Oslo Drammen 250 mi B A LT I C S E A Karstø Stavanger rw eg SCOTLAND ESTONIA Rogaland No Forties ian Tr e n ch Kristiansand Aberdeen LATVIA (UK) Grangemouth DEN. LITHUANIA Norway facts Population: 5 million Arable land: Land area: 385,186 sq km Capital:Oslo Coastline:25,148km (including fjords and islands) 10 SONANGOL UNIVERSO 2.87% Main industries:Oil and gas production, fishing, shipbuilding, paper, timber Mark Clydesdale BZO 0 INTERNATIONAL Team with fully qualified and trained Angolan professionals to help develop Sonangol P&P over a period of 5–10 years. Joint work in the 5,000 sq km Block 34 included the exploration and drilling phase and achieved substantial and sustainable results in a very short period of time. These included the establishment of a complete local drilling team taking full responsibility for Sonangol’s deepwater drilling operation while assisted by only one senior Statoil drilling engineer and the full use of the company’s drill steering documents and work routines. The West Africa region including Angola is the third largest export market for the Norwegian oil supply industry. Norway’s largest exports to Angola are rig and drilling services and subsea equipment and installation. Technical expertise Technical solutions developed in the highly challenging conditions on the Norwegian continental shelf (NCS) are also used to maximise the recovery factors in Angolan fields: one is the subsea separator developed by Statoil/FMC Technologies, which had only previously been used once on the NCS (Tordis field) and is now an important part of the Pazflor development in Block 17. Norwegian Oil and Gas Partners (INTSOK) views Angola as a priority market with total investment and operational costs reaching $90 billion in 2014–17. This makes it the sixth largest market, after Brazil, Norway, USA, UK and Australia. For comparison purposes, INTSOK believes both Brazil and Norway markets will be worth $200 billion each in the same period. Companies and organizations in Angola with links to Norway Companies from Norway invest $2 billion to $3 billion a year in Angola. Statoil alone has invested well over $10.5 billion to date. “The Angolan market interests Norwegian companies, but nevertheless they must learn how to enter Angola. It’s an interesting but difficult market,” says INTSOK’s Regional Director for Angola, Gulbrand Wangen. “It’s a good market for large companies. The small ones have more difficulties because the country is very expensive. One of the challenges is to find local partners owing to the legislation that demands 51 per cent must be in the hands of Angolans.” Wangen also sees environmental services, where Norway has experience and expertise, as another area for greater cooperation. “There are strong prospects for Norwegian environmental companies. Norwegian companies invest $2 billion to $3 billion a year in Angola Statoil OSM Aker Solutions RKK Angola benefits from Norwegian knowhow FMC Technologies Odfjell Drilling Siemens OneSubsea DOF Subsea DNV-GL INTSOK Farstad Shipping/Kuona & Farstad Lda Norse Cutting & Abandonment (NCA) Marine Subsea AS/Interoil Angola Heine Melkevik - Statoil GE Harald Pettersen - Statoil PGS Angola MARCH 2014 11 Harald Pettersen - Statoil INTERNATIONAL Angola has new legislation on the environment for the oil sector, and this legislation will demand new technologies, and Norway has this technology. That’s why it’s an area that we aim to explore.” and development of local content, such as FMC, Aker Solutions, Cameron, and National Oilwell Varco. RKK has been supporting Angola’s National Oil Institute (INP) in capacitybuilding in skills related to the oil industry by training instructors in Norway and advisory services for management and procurement of equipment. RKK’s assistance was financed by the Norwegian government. Subsequently, RKK supported INP in developing the first phase of a Statoilfinanced offshore safety centre which includes first aid and firefighting. RKK has also delivered training courses to Norwegian Angola-based companies for their employees through courses from RKK’s office in Namibia. There is also an important cooperation between Angola’s Agostinho Neto University and the Norwegian University of Science and Technology (NTNU) at Trondheim. Here Statoil and the Norwegian government jointly finance around 10 Masters degree scholarships in Petroleum Engineering each year. Clean energy Oil and gas apart, Norway has long been The Rogaland Training & Education Centre (RKK) is a Norwegian foundation active in Angola that has supported the development of local content. Rogaland is the region around Stavanger, Norway’s most important oil industry base. In the period 2009–13 RKK partnered Angola’s Ministry of Public Administration, Employment and Social Security (MAPTSS) in a capacity-building project through vocational courses at training centres in Luanda, Cabinda and Soyo. This pilot project concentrated on skills such as welding, hydraulics, electronics, technical drawing and machine maintenance. It enrolled 669 students and also trained 82 instructors. The project has established a basis for further development of apprenticeships and direct recruitment to industry. A number of contractors to the oil and gas industry have supported the project 12 SONANGOL UNIVERSO Photo Harald Pettersen - Statoil Training support renowned for its clean energy production from its hydroelectric dams, which supply around 98 per cent of its needs. It is the sixth largest producer of this form of energy after China, Canada, Brazil, the United States and Russia. There is much room for Norway to expand its cooperation in hydropower with Angola. Angola currently invests $3 billion a year in this area and has only around 10 per cent of the electricity generation it needs. Norway’s current hydropower capacity is around 30GW, while Angola has around 2GW. Angola plans to have a total of 7GW by 2017, and the Norwegian government believes additional Angolan water power generation can be installed relatively easily. Norway currently provides technical assistance in water power to Angola. Norwegian Water Resources and Energy Directorate signed a new cooperation agreement with Angola in January 2013. Areas of cooperation include the development of a legal framework as well as competence-building in terms of hydrological data and energy efficiency. Norwegian company Statkraft is Seafood resources Norway is also famous for its success and careful management of its fish stocks. It is the second largest seafood exporter in the world, and more than 36 million meals of Norwegian seafood are served worldwide every day. Norway’s famous salmon is sold globally while its cod is particularly popular in Angola. Dried salted Norwegian cod has been traded with southern Europe since the Viking period in the 9th century and probably then began its connection with the Portuguese-speaking world. Through its Ecosystem Approach to Fisheries (EAF), Norway’s EAF Nansen programme, the country has assisted Angola in mapping its marine resources since 1985. It is a cooperation agreement between the Ministry of Fisheries in Angola and the Institute of Marine Research (IMR) in Norway. The EAF Nansen programme addresses fisheries issues in the Benguela Current countries of Angola, Namibia and South Africa. Its aim is to contribute to a viable fishing industry based on sustainable fisheries management practices and also strengthen administrative, technical and managerial capacities in prioritised areas. Some examples of the current (2013–16) programme’s components are: to improve Angola’s fsheries information system, to increase Norway the capacity to transform research recommendations into management measures, to increase the competence of fisheries inspectors, observers and instructors, to further improve regional cooperation on combating illegal, unreported and unregulated (IUU) fishing, to make improvements in the assessment of fish resources; and to continue supporting students of masters or PhD programmes in relevant topics. People-to-people “Ties between our two countries also include important people-to-people A taste of Norway elocultural Europe’s biggest renewable energy company and is already investing in Africa through its subsidiary, Agua Imara, in Mozambique. carefully manages its fish stocks relations. Norwegian People’s Aid (NPA) and Norwegian Church Aid (NCA) are among the biggest foreign NGOs in Angola,” Ambassador Ingrid Ofstad points out. These bodies, partly financed by Statoil, are doing vital work such as clearing landmines, sinking water wells and building organisational capacity in local civil society. NPA has helped train Angolan personnel in demining and to remove 296,873 unexploded items from its territory. Mine clearance has covered the equivalent of more than 70,000 football fields since 1996. NCA is a strategic partner in Angola of the Norwegian government, which provides most of its funding. “NCA has been working with local partners in Angola since the mid-1980s, with a strong emphasis on partnerships with churches and faith-based organisations,” explains Vibeke Skauerud, NCA’s representative in Luanda. “Religious leaders are respected authorities in Angola, both at local and national levels, and represent a large part of the population. Working with churches and faith-based partners is therefore different than working with traditional civil society organisations, as they are able to reach a wider network of communities and beneficiaries. Churches are also able to mobilise much more effectively at community and grass-roots levels. At the same time, religious leaders have access to authorities at all levels and can be MARCH 2014 13 Shutterstock INTERNATIONAL INTERNATIONAL messengers or go-betweens on behalf of the poor and destitute.” Ms Skauerud lists some of NCA’s main achievements over the past three years, such as providing water and sanitation to 15,693 people in rural communities in Zaire, Uíge, Kwanza Sul and Benguela. In 2012–13 alone, NCA and its partners built eight complete water systems and provided 9,107 people with clean and safe drinking water. The aim is to reach 30,000 beneficiaries by 2015. NCA projects have also focused attention on improving sanitation in these communities. In 2012–13 NCA built 314 latrines in 12 communities and gave lectures on hygiene and sanitation, with schools a special Shutterstock Norway's famous Northern Lights 14 SONANGOL UNIVERSO priority. The organisation also distributed mosquito nets. NCA has also been active within the field of HIV/AIDS, supporting local organisations and churches which care for people affected. NCA also helps victims of gender-based violence, including the opportunity to start a new life after receiving vocational training. “The latest focus of NCA and our partner’s work is aimed at helping communities become less vulnerable when facing the challenges of climate change. This is done, by among other initiatives, promoting alternative agricultural methods and crops, by designing and constructing irrigation systems and by helping communities start savings and loans schemes that provide them with alternative income,” says Ms Skauerud. A good example of how the churches can fill the role of messenger, connecting communities with their local administrations, she explains, is the popular NCA-supported social monitoring programme of the Angolan council of churches. Here the churches consult community members about what they need in order to improve their way of living; the churches then provide input to the local government on their plans, and thereafter they follow and monitor the progress of the government plans. p “Ties between our two countries also Shutterstock INTERNATIONAL include important people-to-people relations.” salaries’ for children under 18, and all young people have the right to free schooling, medical and dental assistance. “One of the difficulties people face when they arrive here is to get used to the dark and cold in winter and the low temperatures in summer. In Oslo, the average temperature in summer does not go above 21 degrees Centigrade and it rains half the time. Despite this, the season transforms people, who become happier and more communicative, and keener to make the most of life. “If you come to visit, don’t miss trying some local dishes and traditional foods such as fårikål, a soup of lamb, potatoes and cabbage; brunost, a sweettasting brown goat’s cheese; hot dog with prawn pâté and fried onions; or even lutefisk, a special dish of cod with mustard, diced bacon bits, white sauce, pea purée and potatoes.” Shutterstock Translator Maria José Maciel, a Brazilian who has spent some time in Angola, has lived in Norway for over two decades. How does she find it? “In my 22 years here, I’ve noticed how much more cosmopolitan and open the country is. Today, the immigrant population now accounts for 14 per cent of the population, which is around 5 million. It’s really nice to see, in the capital, people of every ethnic group and styles mixed together on the streets. “One of the great advantages of living in Norway is to be able to count on the support of the social welfare system the country gives its citizens. Even though many complain about the high taxes, a person who is unable to work has the right to benefits like maternity and paternity leave, unemployment benefit, and sickness and training pay. Parents also receive ‘family Shutterstock A Lusophone view of Norway Shutterstock – Ambassador Ingrid Ofstad MARCH 2014 15 TOURISM Angolans are the first Africans to choose their own seven natural wonders as part of the “New 7 Wonders of Nature” competition. This event aims to boost ecotourism while enhancing global environmental conservation ANGOLA’S SEVEN WONDERS NATURE of Eric Lafforgue By Lula Ahrens 16 SONANGOL UNIVERSO TOURISM A ngola features an impressive range of natural treasures that most Luanda residents, let alone foreign tourists, have yet to discover. Thanks to this year’s 7 Natural Wonders of Angola competition, they are on the verge of gaining both national and global recognition. The attractions Angola offers include the world’s oldest desert, its second tallest waterfalls, spectacular cliffs, huge caves, nature reserves, lagoons, mountain ranges, peninsulas and a part of the planet’s second largest rainforest. The 7 Natural Wonders of Angola forms part of a wider global competition, originating in Switzerland. CanadianSwiss Bernard Weber launched the “New 7 Wonders of the World” popularity poll in 2000 as a project to select the top seven monuments in the world. These were then chosen from 200 proposals in 2007. According to the New 7 Wonders Foundation, 100 million votes were cast via phone and the Internet. The results of the foundation’s second initiative, the New 7 Wonders of Nature, were announced in 2011. The Zurichbased foundation is financed by private donations and the sale of broadcast rights. Angolans choose All Angolans will have the right to choose the country’s seven natural wonders. Luís Segadães, director of Natural 7 Wonders, told Universo that several countries are currently organising similar competitions and all have been certified by the Natural 7 Wonders Foundation. “The 7 Natural Wonders of Angola is a very important initiative for the global consolidation of the ‘brand’ Angola. All this media publicity can boost nature conservation, tourism, knowledge, investment, infrastructure, and employment,” Segadães explained. Organisers of Angola’s 7 Wonders have selected 18 celebrity patrons who voluntarily represent each province and encourage Angolans to vote for its candidate wonder. The voting process has been adjusted to suit Angola. Whereas the global 7 Wonders competition took place online, in Angola, where less than 10 per cent of the population has Internet access, votes are cast exclusively via SMS. Coverage by Angolan TV and radio, daily state newspaper Jornal de Angola and other media has guaranteed widespread knowledge of the event. “That this works became obvious during our road show through the 18 provinces. People responded very enthusiastically. Even in the most remote provinces and inhospitable places, Angolans know about the 7 Natural Wonders of Angola,” said Segadães. BERNARD WEBER Angola roadshow Angola presented 27 natural wonders for voting in July 2013. These were pre-selected from 200 proposals by a committee. The Angolan National 7 Wonders organisation launched the TV roadshow in Cabinda at the same time. Then 18 live TV shows featuring a caravan of more than 30 people travelled across Angola’s 18 provinces. The shows were broadcast between November 2013 and January 2014. On top of this, 27 short films with astonishing aerial shots have been shown on TV since the beginning of September 2013. The seven winning Natural Wonders of Angola will be announced at the Luanda Bay event space on April 27, 2014. THE 7 NATURAL WONDERS OF ANGOLA IS A CHOICE FOR ALL ANGOLANS The founder of the New 7 Wonders of the World poll is Bernard Weber, a filmmaker, museum curator, aviator, and adventurer. A graduate of New York University Film School, he moved to Rome in 1974 where he worked as an assistant to legendary director Federico Fellini. Weber went on to direct his first feature film, Hotel Locarno in 1979, which received several international awards. In June 2013, Weber visited Luanda where he met Vice President Manuel Vicente and officially invited Angola to participate in the 7 Wonders of Africa poll in 2014. MARCH 2014 17 TOURISM Peter Moeller 27 NATURAL WONDERS OF ANGOLA’S FINALISTS OKAVANGO BASIN NAMIBE DESERT 1 2 The 323,192 sq km Okavango Basin covers part of Kuando Kubango province. “This huge, beautiful swamp area will certainly attract a lot of tourism in the future,” said Paul Wesson, head of tourism company Eco-Tur and a constant overland traveller throughout Angola’s territory for over 30 years. “It forms part of the important Kavango Zambeze Transfrontier Conservation Area [KAZA TFCA]. Ever since the civil war ended, elephants, sensing the end of the conflict, have been returning to this region across the border from Botswana.” KAZA TFCA will probably become the world’s largest conservation area. With the Zambezi and Kuvango rivers at its heart, the region houses the world’s biggest elephant population and a wealth of other (endangered) plant and animal species. KAZA TFCA’s member countries – Angola, Botswana, Namibia, Zambia and Zimbabwe – are expecting an explosion of tourism in the area, which will serve as a tool for socio-economic development. Namibe boasts the world’s oldest desert. It harbours countless prehistoric fossils of creatures, including dinosaurs and the giant sea turtle. The world’s first Angolasaurus was found in the Namibe desert. Visitors can see it in the Museum of Natural History in Luanda. The Namibe desert also exclusively hosts the Welwitschia mirabilis, a rare, giant plant, some of which are more than 2,000 years old. Iona National Park's lagoons, its famous giant dunes at Tombwa, unique rock formations and an incredible diversity of flora and fauna make Namibe province well worth visiting. Kostadin Luchansky Province: Kuando Kubango Category: Rivers and Lakes 18 SONANGOL UNIVERSO Province: Namibe Category: Protected Areas TOURISM MAYOMBE FOREST 4 Province: Cabinda Category: Protected Areas The Mayombe rainforest reserve covers part of Cabinda province and extends into neighbouring Democratic Republic of Congo (DRC), Congo and Gabon. It is the world’s sixth most important reserve in terms of biodiversity. Famous Angolan fashion designer Nadir Tati is the patroness of Cabinda province. “Cabinda represents my home, my roots. It influences my work as a fashion designer,” she told Universo. “Mayombe, our ‘Lung of Africa,’ is the second largest forest in the world after the Brazilian Amazon. It produces more than 200,000 cubic metres of wood a year. One of the world’s largest bird species is also found here, as well as rhinoceros, elephants and buffaloes. Its leafy trees can reach a height of more than 50 metres. My mission is to make all Angolans proud of our forest.” The dense jungle area is also blessed with rivers, dense vegetation and an abundance of fish for local consumption. Angolan writer Pepetela has written a book named after, and inspired by, the forest. Kostadin Luchansky “A REAL PRIME SITE, PRISTINE TROPICAL FOREST” – PAUL WESSON TUNDAVALA CLIFF 3 Province: Huíla Category: Cliffs Tundavala is Angola’s highest cliff. It separates Angola’s table land from the endless valley beyond in an impressive 1,000-metre-deep abyss, which includes a beautiful waterfall. From its two stunning viewpoints, visitors can look out over the more arid and dry province of Namibe that lies below. Peter Moeller "ONE OF THE PREMIUM TOURISM SITES IN ANGOLA, A MUST-SEE” – PAUL WESSON, ECO-TUR MARCH 2014 19 TOURISM 5 6 7 8 9 10 11 Barra do Dande Province: Bengo Category: Cliffs Binga Waterfalls on the River Keve Province: Kwanza Sul Category: Waterfalls Cataracts of Ruacaná Province: Cunene Category: Waterfalls Caves of Zau Evua Province: Zaire Category: Caves and Caverns Egipto Beach Province: Benguela Category: Beaches Caves of Sassa Province: Kwanza Sul Category: Caves and Caverns Caves of Nzenzo Province: Uíge Category: Caves and Caverns Luís Fernando, former director of daily newspaper O País, is patron of the Caves of Nzenzo in Uíge. “The caves remind us of an infinity of symbols, events and perspectives as they are situated in the vast territory where history registered the great battle of Ambuíla in the 17th century. This battle dictated the beginning of the end of one of the most captivating and functional socio-political structures of pre-colonial Africa, the Kingdom of Kongo, and represents a wealth of untapped resources and beauty,” Fernando explained. 12 13 Karumbo Lagoon Province: Lunda Norte Category: Rivers and Lakes Mount Môco Province: Huambo Category: Large Reliefs 20 SONANGOL UNIVERSO MUSSULO PENINSULA 14 Province: Luanda Category: Beaches Mussulo is a 30km peninsula with picture-perfect beaches just south of Luanda. It is formed by sediments from the River Kwanza. Angola’s national symbol, the palanca negra gigante, or giant sable antelope, was discovered in the area of the Kangandala National Park in 1963. TOURISM 15 16 Cameia National Park Province: Moxico Category: Protected Areas Kangandala National Park Province: Malange Category: Protected Areas The Kangandala National Park, about 30km from Malange, covers only around 600 sq km. It was originally founded to protect Angola’s national symbol, the palanca negra gigante, or giant sable antelope, which was discovered in the area in 1963. Feared extinct after 1982, the sable was rediscovered in 2005, and Kangandala now offers a safe refuge for a sable breeding programme. 17 18 19 20 21 Caotinha Beach Province: Benguela Category: Beaches Kostadin Luchansky Chumbe Waterfalls Province: Lunda Sul Category: Waterfalls The world’s first Angolasaurus found in the Namibe desert. Golungo Alto Forest Reserve Province: Kwanza Norte Category: Protected Areas River Cuito Province: Kuando Kubango Category: Rivers and Lakes River Zaire Province: Zaire Category: Rivers and Lakes Africa’s second largest river after the Nile, the Zaire is the only river in the world that crosses the Equator twice. This 4,700km-long river originates in Northern Zambia and continues through Congo into Angola, until it flows into the Atlantic Ocean while washing the shores of Zaire province. The river also has great historic importance. On April 5, 1482, Portuguese explorer Diogo Cão travelled along this river and made what is now Angola known to the European world. MARCH 2014 21 TOURISM The spectacularly bizarre moonlike landscape of Miradouro da Lua (View of the Moon), about an hour’s drive from Luanda, is a geological treasure, the result of sea and wind erosion. It served as the backdrop and inspiration for a film made by Portuguese-Angolan Jorge António. Kostadin Luchansky MIRADOURO DA LUA 22 Province: Luanda Category: Cliffs PATRONS OF ANGOLA’S 18 PROVINCES Bangão – Musician – Bengo Akwá – Ex-Football Player – Benguela José Sayovo – Paralympic Athlete –Bié Nadir Tati – Designer – Cabinda Beto de Almeida – Singer – Kuando Kubango Zulmira Manuel – Singer – Kwanza Norte Don Kikas – Singer – Kwanza Sul Márcia Vahekeny - Model/Ex-Miss Angola – Cunene Pérola – Singer – Huambo 22 SONANGOL UNIVERSO Benedito Kayela – Presenter and Journalist – Huíla Eduardo Paim – Singer – Luanda Paula Simons – Journalist – Lunda Norte Gabriel Tchiema – Singer – Lunda Sul Pedro N’zagi – Presenter – Malange Job – Football Player – Moxico Canguimbo Ananás – Writer – Namibe Luís Fernando – Journalist and Writer – Uíge Lesliana Pereira – Actress and Ex-Miss Angola – Zaire TOURISM KISSAMA NATIONAL PARK 23 Province: Luanda Category: Protected Areas MARCH 2014 23 Shutterstock “Kissama is one of Africa’s most beautiful parks, above all thanks to its flora and fauna. It has also been the subject of a lot of conservation activity following the advent of peace,” said Paul Wesson. “A very popular destination for visitors due to its proximity [80km] to Luanda.” Designated a national park since 1957 due to its enormous variety of wildlife, it lost almost all that wildlife during the years of conflict. In 1995, a project was launched which brought in animals from Botswana and South Africa. The first animals arrived in 2000. They included giraffes, elephants, zebras and ostriches. Thanks to their protection and successful breeding within the park, Kissama’s wildlife is now flourishing again. TOURISM BLACK ROCKS Province: Malange Category: Large Relief The mysterious Black Rocks (Pedras Negras) at Pungo Andongo stand out for miles on a broad plain. The defensive site once served as the capital of the Kingdom of Ndongo and enshrines many myths and legends. King Ngola Kiluanji and Queen Ginga’s footprints are believed to be embedded in the rocks. Kostadin Luchansky OF PUNGO ANDONGO 24 Kostadin Luchansky KALANDULA WATERFALLS 24 SONANGOL UNIVERSO 25 Province: Malange Category: Waterfalls “Probably one of the most popular destinations for visitors to Angola (particularly as one can visit Pedras Negras on the same trip). The waterfalls rate as the second most important in Africa and rival Victoria Falls in height,” according to Paul Wesson. The falls are 105 metres high and 400 metres wide. TOURISM 26 Province: Bié Category: Rivers and Lakes Tourism potential RIVER KWANZA LEBA MOUNTAIN Kostadin Luchansky The roughly 1,000km-long River Kwanza is Angola’s largest and most important water source. It crosses six provinces before it reaches the Atlantic Ocean 70km south of Luanda. The Kwanza is rich in fish, and its banks feature a great variety of flora and fauna. 27 Serra da Leba is a steep mountain range which divides the province of Huíla from Namibe. It is famous for its beauty and also for the Serra da Leba pass, a breathtaking mountain road built in the 1970s that spirals down from the 1,845-metre plateau to almost sea level in just over 10km. Kostadin Luchansky Province: Namibe Category: Large Relief If there is one thing that has become clear during the 7 Natural Wonders of Angola competition, it is that Angola has enormous and largely untapped tourism potential. Peter Moeller, editor of BP magazine Calemas, is well placed to evaluate Angola’s tourism potential on show in the event. Moeller has travelled all over Angola since 2004 and visited all 18 provinces. Driven by Eco-Tur’s Paul Wesson, Moeller has photographed and produced the annual corporate BP calendar An Angolan Odyssey, which is distributed worldwide. ”Our calendar serves as a window on the country, showing beautiful scenery and daily life,” Moeller told Universo. “One of the reasons we produce it is to stimulate the interest of Angolans in their wonderful country and urge them to travel more internally.” According to Moeller, the outstanding attraction that Angola can offer tourists is “the warmth and friendliness of its people – and also of course the still wild and unspoiled beauty of the countryside and its dramatic features.” “There are a number of difficulties for tourists that they do not experience in other countries, including internal transportation and infrastructure, accommodation and visa-related issues,” he said. “But already, all over the country trunk roads are hugely improved, making access easier.” In line with the competition’s spirit of preservation, Moeller believes care should be taken in making changes to facilitate tourism. “This can easily compromise the fragility of what the visitor has come to see, as has proved the case in many other parts of the world,” he said. “Improvements to facilitate an enjoyable visitor experience are one thing, but if a ‘wonder’ is truly beautiful already, there is not much that can be done to improve it. The big danger is the opposite.” In our next issue, we will have an update with the seven winners. More information on the 27 finalists and how to vote can be found on: www.7maravilhas.ao p MARCH 2014 25 CULTURE ANGOLA S K C O R THE FILM CRITICS A US documentary featuring contemporary musicians in Angola has captivated international audiences and critics. Universo looks at what all the fuss is about 26 SONANGOL UNIVERSO MARCH 2014 27 CABULA6 and Coalition Films, 2012 From the heart, Wilker Flores in action CULTURE A CABULA6 and Coalition Films, 2012 chance encounter between US film-maker Jeremy Xido and Angolan musician Wilker Flores in a Huambo coffee shop resulted in the uncovering of an unexpected musical genre in Angola. Xido was in the city researching a documentary on the rebuilding of the Benguela Railway, but Flores captured his attention, and this led to the making of the film Death Metal Angola. Flores plays death metal, a form of loud rock music characterised by an aggressive fast beat and often indecipherable barked or growled lyrics. Death metal is a type of music nowadays mostly associated with Northern Europe despite its American origins, so Xido was understandably surprised to see it in Africa. The beginning of death metal as a distinctive rock genre is believed to have been the 1985 Death Metal album by US group Possessed. The Oxford Dictionary defines music as “vocal or instrumental sounds (or both) combined in such a way as to produce beauty of form, harmony and expression of emotion”. To most of those hearing death metal for the first time, finding beauty or harmony might prove a tough task, but the sound is certainly expressive. Players and listeners have long recognised music as a vehicle for manifesting deep human feelings and a channel for the healthy release of tension and sentiment. This catharsis appears to be at the root of why some Angolans play death metal. Whereas the death metal genre practised in the economically developed 28 SONANGOL UNIVERSO “Death Metal Angola is a beautiful film, one that is bound to become a cult classic” – E. Nina Rothe, The Huffington Post world’s suburbs has death and destruction as imaginary themes, many of Angola’s death metal bands have lived through the trauma of the real thing. Huambo’s inhabitants suffered intense bombardment as recently as 1998. The film’s attraction to audiences around the world appears to lie in the exotic ruined venue where the action takes place and also in its principal characters. At the heart of the action is tough and gentle former schoolteacher Sónia Ferreira, who is not only Flores’ partner and fellow fan of death metal, but also heads a nongovernmental organisation (NGO) that looks after dislocated or abandoned children. Her orphanage is a former dairy close to the venue for the death metal concert whose preparation is ostensibly the film’s subject. Ferreira co-founded the NGO Okutiuka, which means “to return” in Umbundu, the local Angolan indigenous language. Okutiuka was established in July 1995 in Huambo, Ferreira’s hometown. The NGO feeds and facilitates medical treatment both in-house but also out in the community. Last year it assisted 62 young people aged between 6 and 22. Apart from providing for basic physical needs, Okutiuka’s central function is the psychological and educational development of its vulnerable charges. Xido’s film documents the challenging work involved in setting up the event. Preparation for the concert takes place close to the orphanage where evidence of destruction lies all around. He films the mounting of the makeshift stage, the gathering of equipment and the installation of the lighting and sound systems in a place where energy supplies cannot be taken for granted. Phoenix rising E. Nina Rothe, a cultural critic at the influential US blog, The Huffington Post, points to the life-affirming spectacle the death metal concert project presents in a place where the destruction of their homes Homework rehearsal CULTURE African metal link There has always been much talk of the African origins of modern American blues and rock, but Wilker Flores sees a specific link to a local rhythmic beat, tchingange, that is also found in death metal. For Wilker, “metal is African” and has its roots in the slaves taken to North America. “The guys who are heading this movement in Angola talk about rock as returning home. They make a fascinating argument,” says Xido, who reckons that up to a quarter of all slaves in North America originated in Angola. For Xido, the film really revolves around the character of Sónia who runs the orphanage and protects the kids. “Rock has been a super-important thing in her life. And that’s really the soul of it and this music is used… as a way for these folks to find an expression to heal the horrors of what they’ve experienced,” he explains. “What they [the musicians] hear is the sound that moves them and opens something up and allows them to go into this really deep place. They have these lyrics where they can finally find some form that can withstand the power of what they’ve experienced. And that’s what is at the core of the film.” Death Metal Angola has been screened at Luanda’s International Film Festival CABULA6 and Coalition Films, 2012 and in Huambo. The film has collected many plaudits and won best documentary feature at the Rhode Island International Film Festival. The movie has been shown all over the world since its December 2012 international premiere in Dubai, including at several venues across the United States, in the Netherlands, Argentina, Denmark, Portugal, Spain, Australia, Romania, Norway, France, Chile, Germany, Italy, Poland, South Korea, Switzerland, UK, Finland and, remarkably, Antarctica. The Huffington Post’s E. Nina Rothe believes Death Metal Angola also promises to make coveted rock stars of Wilker Flores and the groups Dor Fantasma, Neblina, Before Crush and Black Soul, among the many musicians featured in the documentary. p Live rock MARCH 2014 29 CABULA6 and Coalition Films, 2012 and the safety they once knew has left children homeless and orphaned. “With the help of his wonderfully positive protagonists, Xido discovers a culture of music and life, accompanied by the kind of joie de vivre that can only come from having lived through unbearable hardship and strife,” Rothe writes. “If we’ve learned anything in life, it’s that the human spirit has incredible resilience, and out of the most horrific events there almost certainly will grow beautiful results,” she notes. “Xido’s protagonists have found the hidden energy of a style of music that perhaps at its core is meant to heal and inspire. “For the kids of Okutiuka, their guardian Sónia and her boyfriend Wilker, the music draws from their personal experiences and from their African roots, while the lyrics help to purge all the spectres of a past lived in their hell on earth,” she adds. “All the children need is a bit of affection, care and comprehension. If they have this, we can overcome any adversity.” – Sónia Ferreira. CULTURE The kids are alright Sónia Ferreira’s Okutiuka NGO was founded in Huambo in 1996. It focuses on infant–maternal health and it targets young people who have been abandoned to live on the streets. While other groups have had help from the United Nations and other agencies, these children had neither protection nor advocates willing to ensure that their rights were respected. Okutiuka from the outset made sure the children survived and their basic needs such as hospital visits, were met. The charity focuses support on integrating badly treated kids found in situations of risk where there is nobody else CABULA6 and Coalition Films, 2012 Air guitar, Angola style 30 SONANGOL UNIVERSO to help them. Some have suffered violence or even practised it and need psychological help. Ferreira has lived through some dramatic moments. Caught in the crossfire of the bombardment of Huambo in 1998, she managed to broker a truce between the two sides and airlift 55 children by cargo plane from the city to safety in Benguela. Like a modern-day Moses, she led them out of a war zone to camp on a beach and managed to look after them there, even putting some into school. A year later she took them back to Huambo – a city she found in an even worse state than previously – where some children found their families; but new children needed looking after and Okutiuka took them in. At its peak, Ferreira’s charity had a total of 168 children under its protection. Today, many of Okutiuka’s former charges are skilled workers and may have set up families of their own. Others are university students, artists and musicians. Heavy rock music is not the only cultural manifestation at Okutiuka. Sónia Ferreira was once band director for a children’s group in Benguela and has helped prepare Okutiuka’s carnival groups, which have conquered seven junior carnival titles and two adult championships in Huambo province. CULTURE Death Metal Angola director Jeremy Xido Contact CABULA6 and Coalition Films, 2012 For more information and contacts see www.deathmetalangola.com MARCH 2014 31 CABULA6 and Coalition Films, 2012 At the Dubai Premiere CITYSCAPE LUANDA’S NEW LANDMARKS 32 SONANGOL UNIVERSO Luanda’s cityscape continues to spring surprises as more new large public buildings emerge. Pride of place in the most eye-catching category is the striking parliament complex. Another new building of note – soon to be unveiled – is the Museum of Science and Technology MARCH 2014 33 Kostadin Luchansky Assembleia Nacional at night CITYSCAPE Museum of Science and Technology A long white oblong roof faces the skies 34 SONANGOL UNIVERSO Brazuk T he most impressive addition to Luanda’s skyline in the past two years is the rose-coloured, 21-metre-diameter dome of Angola’s new parliament, the Assembleia Nacional. The parliamentary complex, now nearing completion, is on a large scale and is symbolically located high above the gardens containing the tall tower of the Agostinho Neto monument and his mausoleum. From this prominent site a battery of arched windows enjoys wide views over the calm bright seas of the South Atlantic. The neoclassical parliament building is reminiscent of Washington’s Capitol Building with its columns and dome, but it also echoes the pink colour and the lines of Angola’s most photographed building, the National Bank (Banco Nacional de Angola). Work began on the $185 million project in 2010, and it is now being fitted out for an inauguration expected this year. The complex consists of four buildings: one for the actual parliament, one for offices, a parking block and another for services, equipment and security. It covers an area equivalent to eight football pitches. The parliament’s Assembly Hall has seating for 532 in the round. The fanshaped stepped floor of the auditorium faces the raised tribune of the parliament’s president. Seats reserved for ministers flank the tribune. The public can access the mezzanine level from the third floor. The mezzanine is for interested citizens, journalists and other visitors such as diplomats. It has capacity to hold 210 people. Surrounding the circular assembly hall building, wrapping around more than half its circumference, is the sixfloor office block containing rooms for the parliamentary groups and the institution’s administration. The complex has 20 lifts to facilitate the movement of parliamentarians going about their business. It also contains 485 – mostly underground – parking bays. below Luanda’s 16th-century hilltop bay-end fortress. The new Museum of Science and Technology (Museu/Centro de Ciëncia e Tecnologia) building, now nearing completion, tastefully reuses the renovated cream-coloured facade of a long-abandoned soap factory, but its wide, bright, well-lit interior matches the modernity of the exhibits destined to occupy the space. The outer shell of this building combines plastered brick walls with upper sides and a rooftop made in slicker more modern materials. In a city where totally new glass-and-steel towers have become commonplace in recent years, it is refreshing to see that this new building has made use of its older foundations and thus literally maintains its old roots in the city. The museum has five areas: an exhibits gallery, an auditorium, a planetarium, a refreshment room and administrative offices. The most prominent exhibit that has been installed during construction is a CITYSCAPE The Museum of Science and Technology huge suspended globe, the centrepiece of the planetarium. Another well-rooted link to Luanda’s past is a conserved baobab tree in the car park. The aims and objectives of the museum are to provide an interactive educational space open to all. This will include both historic and forward-looking technological exhibits and additional complementary information facilities for students. As part of the educative aims of the museum there will be a video centre with a 22-metre screen with 3D effects. Students will be able to interact with films, which will also benefit from a sophisticated sound system. Tourist friendly If a key premise of developing visitor and tourist attractions is to have them in a cluster, then the new science and technology museum is well situated. It is within easy walking distance of the military museum housed in the São Miguel Fortress above it. A further linked attraction is Luanda’s now well-established bayside park. After visitors take a long stroll admiring the sea and enjoying the breeze the two cultural attractions will provide worthy destinations. To add some air-conditioned comfort and refreshments to this cultural quarter of Luanda Bay, a new shopping centre is under construction between the Museum of Science and Technology and the Fortress.p MARCH 2014 35 Sonangol news briefing Courtesy of Angoflex Angoflex sets load-out record ■ Angoflex, a partnership between Sonangol and France’s Technip, believes its latest umbilicals load-out is one for the record books. “It was a world first and very challenging operation due to the long distance to the quay and the complex route path,” said Sylvain Cabalery, Angoflex’s Angola deputy country manager. “The operation was completed on schedule and without any quality or safety hitches.” The company manufactured and supplied the umbilicals weighing 2,500 tonnes and measuring a total of 74km in length at its Lobito plant in Benguela province. Umbilicals are sheaves of cables used to operate controls and valves on distant sea-bed wellheads. Cabalery described this third and final load-out of umbilicals for the CLOV project* as a “breakthrough advance”, as the process involved unreeling umbilicals from the plant carousel at Lobito onto specialised installation vessels anchored 1.2-km away. It entailed the intricate 36 SONANGOL UNIVERSO manoeuvring of the semi-rigid umbilical cables around curves and over bridges. The need to encase the cables in steel so they can withstand the cold of deep-sea operation enhances umbilical cable rigidity. “Success was made possible thanks to strong coordination between the teams mobilised by Angoflex, Technip and the clients,” said Cabalery. The Angoflex facility at Lobito employs more than 200 Angolans and was recently re-equipped and upgraded with the addition of two storage carousels (giant spools), making it one of the most modern in the world. “Looking ahead with the experience gained through these load-outs and the CLOV project, the Angoflex team is now ready to manufacture a full range of umbilicals in its Lobito plant and repeat this success in future projects,” Cabalery added. *See page 40 for more information on CLOV. Sonangol news briefing Angola LNG Marketing Ltd Angola LNG sells first LPG cargo (LPG) cargo from its plant in Soyo on January 28. The company commissioned its Soyo LPG and condensate jetty just before loading operations began. “In addition to LNG production for international markets, propane, butane and condensate production at Angola LNG is an important part of our operational and commercial activity. Our LPG and condensate production will help to supply both domestic and export markets with their energy needs,” said Artur Pereira, CEO at Angola LNG Marketing. Apart from its LNG facilities, the Soyo plant’s liquids infrastructure includes storage tanks for 88,000 cubic metres of propane, 59,000 cu m of butane and 108,000 cu m of condensate. It also has a dedicated jetty for loading propane, butane and condensate and a second jetty for pressurised butane loadings which will serve the domestic market. The LPG shipment marks a further milestone in the continued development of Angola’s oil and gas resources and provides a new source of energy for Angola and export markets. Angola LNG is a joint venture between Sonangol, Chevron, BP, ENI and Total. Lobito refinery finance ■ Sonangol EP has contracted Standard Chartered Bank as financial consultants for the Lobito refinery project. The bank will develop the economic model and the finance strategy, undertake budget planning and risk management, and audit key elements of the project, as well as manage its tax and commercial framework. Basic infrastructure works for the 200,000-bpd Lobito refinery began in December 2012. Completion is scheduled for 2017–18. Total E&P Angola / Kostadin Luchansky ■ Angola LNG sold its first liquefied petroleum gas MARCH 2014 37 Sonangol news briefing More pre-salt finds in Angola ■ Angola made two more pre-salt oil discoveries in December Shutterstock and January. First a partnership between Cobalt, Sonangol P&P and BP found significant oil and gas volumes in Block 20. During tests, Block 20’s Lontra exploration well produced 2,500 barrels of condensate and 39 million cubic feet of gas a day. Lontra reached a total depth of 4,195 metres and penetrated a 67-metre layer of a good-quality reservoir. More wells and tests are necessary to evaluate the find, but Lontra is believed to be a discovery on an international scale, and the reservoir contains more natural gas than expected. Operator Cobalt and its partners Sonangol P&P, Nazaki Oil and Gaz, and Alper Oil made the second discovery, this time in Block 21. This was Sonangol’s and Cobalt’s fourth deepwater pre-salt discovery off Angola’s coast. Here, the Bicuar 1A pre-salt deepwater exploratory well drilled to 5,739 metres found around 56m of net pay at multiple pre-salt intervals. Drilling took just 59 days and wrapped up some 63 days ahead of schedule. James Farnsworth, Cobalt’s chief exploration officer, said the geology showed similar features to the Campos Basin in Brazil and would be key to expanding the potential of the broader Kwanza Basin pre-salt area. “We are also excited with how quickly Bicuar 1A was drilled, while never compromising our commitment to safety and environmental protection. Continued performance of this type would allow us to drill wells at nearly half the cost we had anticipated,” he added. Blocks roadshow comes to London ■ Sonangol EP held a roadshow in London on February 21 for oil companies interested in bidding for exploration blocks in the Kwanza and Congo Basins. Roadshows for the 10 onshore blocks had previously been held in the United States and Angola. Seven of the blocks are in the Kwanza River Basin and the other three are in the Congo River Basin. Severino Cardoso, Sonangol’s head of exploration, said 38 SONANGOL UNIVERSO the blocks could contain up to 7 billion barrels of oil. There are hopes that Angolan companies may take part in the bidding as onshore drilling requires less investment than offshore wells. A typical onshore well requires $15–20 million, whereas offshore wells require as much as $100 million. The bidding process in this auction round, the first since 2011, is expected to begin shortly. Sonangol news briefing Sonangol puts extra $750m into block SonaExpo 2014 ■ Sonangol has doubled its stake in Block 15/06 to 30 per cent after buying Total’s 15 per cent stake for $750 million. Block 15/06 is located around 350km northeast of Luanda and covers 2,984 sq km in deepwater varying between 220 and 1,700 metres. The block is operated by ENI (35%) whose partners are SSI, a joint venture between Sinopec and Sonangol (25%), Norway’s Statoil (5%) and Angola’s Falcon Oil Angola Investments (5%). Total said its strategy was to concentrate its investment in core assets and reinforce its activities in Block 17 (the CLOV project) and Block 32. Solar village ■ Sonangol mounted an impressive exhibition, SonaExpo 2014, on Luanda Bay on February 21–23 as part of the company’s 38th-anniversary celebrations. A total of 37 stands distributed information on Sonangol’s products and services. The 2,000-square-metre site on the bay’s broad promenade, which is just 10 minutes’ walk from Sonangol’s head office, represented 12 subsidiaries of the company. The company’s industrial arm, Sonangol Investimentos Industriais (SIIND), took the opportunity to show off products from its 25 factories. These included fibre optic cables, paints, metallic frames, locks and door handles, plastic utensils, electrical fittings, transformers, pumps, PVC tubing and mattresses. For more information on SonaExpo 2014 see: http://bit.ly/1iGiTQc ■ President José Eduardo dos Santos has inaugurated an Shutterstock innovative Sonangol-financed scheme to bring the benefits of solar energy to rural villages. Cabiri is a newly built village in Ícolo e Bengo municipality about 70km from Luanda and has absorbed the population of two existing villages. Here, 500 new homes have been equipped with solar panels for their domestic energy needs. Each house also has a solar-powered stove, which reduces the need to use local timber resources. The village also uses solar power for street lighting and for its public buildings such as a school, a clinic, a market, a training and arts centre and a laundry. Job Graça, minister for Planning and Territorial Development, said Cabiri is “a model of self-sufficiency”. The project aims to raise living standards in the Angolan countryside by bringing the benefits of education and training to farming communities and increase their productivity. Fundação EDP in partnership with Energia Inovação Holding (EIH) are responsible for the project’s development. There are plans to replicate the Cabiri model throughout Angola. Sonangol London hosts industry dinner ■ Sonangol’s London office, Sonangol Limited, hosted a dinner and dance spectacle as part of the annual International Petroleum Week gathering. The venue was London’s venerable Victoria and Albert Museum. Oil company executives and Sonangol employees from all parts of the globe attended. New York based Angola dance group Batoto Yetu gave a vibrant and energetic performance to the delight of the 200 guests present at the event. MARCH 2014 39 INDUSTRY ANGOLAN INDUSTRY BOOST SBM Offshore Paenal shipyardʼs landmark work on the CLOV project shows that Angola’s efforts to industrialise are bearing fruit; Universo examines the accelerating development of its onshore facilities 40 SONANGOL UNIVERSO INDUSTRY and giving more job opportunities for Angolans,” adds Ramos. Angola’s now proven capacity to undertake such a huge and complex task means valuable experience and skills have been gained to apply to similar jobs on FPSOs in future and serve the country’s expanding deep-sea oil production. What is CLOV? The CLOV FPSO is at the centre of the $10 billion CLOV project in Block 17, which will produce 160,000 barrels of oil per day. CLOV is an acronym for the Cravo, Lírio, Orquídea and Violeta oilfields (meaning Carnation, Lily, Orchid and Violet, respectively). The CLOV project consists of 34 deep undersea Paenal in numbers Quayside: Water depth: 490 metres 10 metres Crane capacity: 2,500 tonnes Personnel:1,300 Angolan staff: 85 per cent MARCH 2014 41 Total E&P Angola / Kostadin Luchansky F ormal completion of building and fitting a huge topside unit for the CLOV floating production, storage and offloading vessel (FPSO) sparked celebrations on December 5. The operation represented a number of “firsts”, not just for Angola but also for Africa, at the Paenal dockyard at Porto Amboim in Kwanza Sul, some 260km south of Luanda. Mostly home-grown trained Angolans fabricated and installed the 1,836-tonne unit. “This event has significance for the oil sector in Angola and the world in general. The manufacturing and installation of the water treatment module on CLOV FPSO is an example which demonstrates the development of advanced technology in Angola,” said Sonangol oil engineer Geraldo André Raposo Ramos. The CLOV FPSO is a giant 119,000tonne vessel, which can store 1.78 million barrels of oil and is able to process 160,000 barrels per day. This was the first time a ship of this scale and type had docked in any African port, but it fitted comfortably alongside Paenal’s 490-metre-long deepwater quay. Preparation for the fitting of the topside unit involved assembling Africa’s largest crane. Nicknamed “Jamba” (Elephant) by the Angolans, the 4,500-tonne heavyweight crane with 2,500-tonne lift capacity was inaugurated in July last year. The $2 billion CLOV FPSO made an 18,520-km journey from the Daewoo Shipbuilding and Marine Engineering yard in South Korea and arrived at Porto Amboim on November 8. The lifting of the module and positioning on the top deck was completed within a week. The smoothly run CLOV FPSO operation has earned Angola kudos among the continent’s oil-producing nations and also raised the percentage of locally manufactured content in the industry, a key objective of the Angolan government. “The project has contributed to the increase of local content in the areas of production, engineering, management of projects, quality control, human resources, administration and finances and, logistics, as well as health and safety, INDUSTRY wells which reach depths of between 1,100 and 1,400 metres, and is located 140km northwest of Luanda. CLOV is estimated to hold 505 million barrels of crude. Total has spent $1.6 billion in Angola on CLOV, hires 100 nationals each year and will invest $4 million in the Porto Amboim community, said Jean-Michel Lavergne, the company president. Total targeted an increase in the number of Angolans on its staff to 76 per cent last year, compared with 68 per cent in 2006. It also aimed to have half of its managers recruited locally too. Yards better: Paenal Paenal is a joint venture between Sonangol (40%), Dutch company SBM Offshore (30%) and South Korea’s Daewoo (30%). Paenal has absorbed investments of over $300 million and employs 1,300 people. Angola’s policy of favouring local recruitment has had profound effects on the local economy and the career prospects of the population of Kwanza Sul, creating jobs and skilled workers for the oil industry. Paenal complements similar yards in Lobito and Soyo which also manufacture topside modules, suction anchor piles, CLOV FPSO in numbers Weight: Storage capacity: Total E&P Angola / Kostadin Luchansky Oil production: 119,000 tonnes 1.78 million barrels 160,000 bpd Length: 305 metres Width: 61 metres Cost: $2 billion buoys and subsea systems. In addition to participating in Total’s CLOV project, Paenal is also involved in ENI Angola’s N’Goma FPSO project and has two wellhead platforms on its order book from Chevron’s Cabinda Gulf Oil Company for work on its Mafumeira project. The shipyard is well placed. Recent presalt discoveries are just 96-km away and Luanda is only three hours by road. The yard has contributed massively to the knowledge base of Angola’s oil and gas industry as well as to its long-term development. While Paenal clearly has expertise in metallic structures, Ramos points out that it also makes suction batteries and mudmats (flat sheets of metal used to support subsea structures where the sea floor is soft), and the Heerema yard alongside manufactures subsea structures, including piping and risers. Ramos believes that with the expansion of the volume of oil and gas exploration, Angola may need additional yards and has to improve the capabilities of existing ones in order to support future offshore operations. “Much of the equipment and tools that are currently fabricated outside Angola could actually be made within Angola. Sonangol EP appointed a new management team at ESSA Angola Nicknamed “Jamba” (Elephant) by the Angolans, the 4,500-tonne heavyweight crane was inaugurated in July last year 42 SONANGOL UNIVERSO INDUSTRY Sonils – Sonangol Integrated Logistic Services The main yards at the Sonils Base in Luanda are Friedlander, FMC, Cameron, Aker Solutions and General Electric (GE). The Friedlander yard makes and fits piping work, platform supports and structures. Friedlander also manufactures permanent guide bases (PGBs), well jumpers (connections between wellheads and manifolds) and mudmats, among other things. “CLOV FPSO demonstrates the development of advanced technology in Angola.” – Engineer Geraldo Ramos FMC yard activities include: hydraulic testing, electronic and integration systems, wellhead component maintenance and storage of spare parts. FMC tests and installs XTs or “Christmas trees” (sets of valves used to control gases and fluids on the sea floor). It also makes and tests manifold and well jumpers. Cameron’s yard fabricates, installs and tests PGBs, frames for XTs and wellheads. Aker Solutions’ activities include equipment installation and support, customer asset management, hiring of spares and support for life in the oilfield. GE provides production and drilling services, LNG and industrial energy generation. GE also conducts welding, installation and testing of XTs, jumpers and turbines, and the production, maintenance and inspection of drilling equipment. The Sonamet yard at Lobito undertakes engineering, fabrication, logistics and offshore maintenance and installation activities. The main equipment fabricated includes tubing, riser towers and structures: long base line (LBL) array frames, pipeline end manifolds (PLEMs) and in-line tees (ILTs), spools, jumpers, manifolds, PGBs and XTs. The Angoflex yard, which is situated in the Sonamet yard, is divided in two sections. One is for making umbilicals and pipeline, rigid pipeline fabrication, single or pipe-in-pipe (PIP). The main equipment fabricated in this yard is umbilicals, rigid pipes, LBL array frames, mudmats, PLEMs and ILTs. p Angola’s First Lady, Ana Paula dos Santos, christened the FPSO in the presence of Jean-Michel Lavergne, president of Total, the main mover behind the CLOV project. Francisco de Lemos José Maria, board president of Sonangol EP, and Kwanza Sul’s Provincial Governor, Eusébio de Brito, were also present. MARCH 2014 43 Total E&P Angola / Kostadin Luchansky (Empresa de Serviços e Sondagens de Angola) led by general director Engineer Fernando da Fonseca and his deputy Felisberto Vieira, with the aim of managing rig fabrication for a range of activities. However, Sonangol urgently needs to train qualified technicians to maximise the local content in the phase of project execution, Ramos said. Apart from Porto Amboim, Ramos said Angola’s main bases for offshore activities are at Malongo (Cabinda), Sonils (Luanda), Kwanda (Soyo) and Sonamet (Lobito). Ramos detailed examples below of Sonils and Sonamet activities give an idea of the complexity of the oil support industry and the operations companies perform in Angola. Sonangol knowledge MATCHMAKING IN THE Shutterstock SUPPLY CHAIN Seeking an ideal partner, especially in the age of the Internet, has never been more fashionable. This process is not only the domain of hopeful singles; it applies equally to Angolan and international companies seeking to do business together T o meet national content and majority ownership requirements, Angola has to develop local companies capable of operating at the same high level as those from abroad. The Centre for Enterprise Support (CAE) at Angola’s Chamber of Commerce and Industry has the task of fostering partnerships between local and foreign companies. CAE is becoming the first port of call for international oil sector companies seeking a local partner, as they are under pressure to increase local content and provide it through Angolan-controlled companies. The oil and gas industry has especially high quality demands for equipment and services. Through these partnerships Angola gains expertise, experience and capital. The “matchmaking process” starts when CAE receives requests from international oil companies looking for Angolan partners to take part in their 44 SONANGOL UNIVERSO supply chain. CAE provides a process of certification for Angolan companies. It verifies that the company is genuine and has the capabilities and operates in the way it says it does. CAE also certifies that the candidate company’s accounts are in order, that it has a cash flow and, most importantly, that it is at least 51 per cent Angolan-owned. The Angolan company also must have been operating in the market providing goods or services for at least a year. If these would-be partners do not meet any of the above prerequisites, then CAE offers a consultancy service, free of charge, which assists the companies in fulfilling these requirements. Once armed with CAE certification, Angolan companies are prequalified to be matched with a foreign company. CAE then takes these companies to exhibitions, fairs and conferences where they can meet prospective foreign partner companies. Certificates provided by CAE are valid for two years and after that period must be renewed. So what kind of partners are international oil companies seeking? They need a wide range of service providers, from computer software specialists to deep-sea divers, welders and caterers. To date, CAE’s database has around 1,890 registered companies. These companies currently provide services such as consulting, transportation, construction, chemicals, security, equipment supply and maintenance. So far CAE has certified 213 service providers and suppliers; another 1,600 are en route to certification. This process includes supplying CAE with documentation showing that they have the required Angolan capital and a financial report demonstrating their accounts are legitimate and are in order. CAE’s training has enabled Angolan suppliers to participate more effectively Sonangol knowledge The organisation began work in 2005 and has a youthful team made up of 41 staff members in the oil industry’s competitive bidding processes. It has improved the quality of services and the development of viable business plans as well as the acquisition of managerial and financial acumen. The CAE team CAE has offices in four locations with strong oil and gas industry clusters: Cabinda, Soyo, Benguela and Luanda. The organisation began work in 2005 and has a youthful team made up of 41 staff members, coordinated by Maria Inês João. The CAE team also includes four consultants whose role is to help raise the skill levels of Angola’s small and mediumsized companies. They give technical assistance, free advice, information and, most importantly, time. The team also helps plan and assist marketing and promotion. CAE is keen to recruit more consultants. Esso Angola told Universo that development of local suppliers is a priority which it is addressing in partnership with CAE. “Training takes place during workshops with potential suppliers and by advertising in the media on business opportunities open to bidding. At the end of 2012, 52 per cent of Esso Angola contracts were assigned to local companies, and the expectation is to increase this percentage. “The main challenges to overcome are technical expertise, financial strength and suppliers’ ability to meet global standards. Esso Angola will continue to transfer knowledge by supporting operations, sharing experiences and conducting formal training of suppliers on technical and compliance procedures,” the company said. Service promotion activities carried out by CAE include attendance at public events such as Luanda’s international fair, FILDA, in July 2013. CAE registered 10 new companies during the fair and made contact with many more companies among the 50,000 visitors over six days. CAE also escorted 20 Angolan companies to Rio de Janeiro to take part in the Offshore Technology Conference (October 28–November 3) to meet potential international partners. Angolan entrepreneurs were able to participate in conferences, workshops, business dinners and meetings with Brazilian companies, visit Brazil’s small and medium sized enterprise organisation SEBRAE and state oil company, Petrobras, and see how suppliers are contracted to meet local content rules in Brazil. Assisted by Angola’s Ministry of Oil, Sonangol EP, the Angolan Embassy and the Angola–Brazil Chamber of Commerce, among others, CAE engaged in information-sharing opportunities with Brazilian companies. A case in point One Angolan-owned company assisted by CAE is FDF Lda, which provides building and earthworks. CAE began assisting FDF in 2006 and later certified it. FDF has taken part in various CAE-organised training courses and has benefited from its consulting services and technical assistance. Armed with CAE certification, the company gained contracts at the Kwanda Base at Soyo for Angola LNG. The Business Initiative Organisation subsequently awarded FDF a prize for gold-standard quality at a ceremony in New York. p Dr. Job Vasconcelos – CAE coordinator Maria Inês João – oil industry relations Igor Minitra – marketing MARCH 2014 45 Sonangol results 46 SONANGOL UNIVERSO Sonangol results COMFORTABLY ON COURSE MARCH 2014 47 Shutterstock During its 38th anniversary press conference Sonangol underlined its commitment to meet its 2015 output target. Universo looks at the details behind the company's 2013 results figures Sonangol results From left to right: Mateus Neto, Fernandes Mateus, Anabela Fonseca, Francisco de Lemos J Maria, Ana da Costa, Fernando Roberto and Paulino Jerónimo S onangol EP is confident Angola will meet its production benchmark of 2 million barrels per day next year despite a slight dip in output in 2013, board president Francisco de Lemos José Maria told journalists in Luanda on February 25. “As far as the target of 2 million bpd in 2015 is concerned, this remains the same. We are solving the problems as they appear. As a contribution to the target we will have the additional contribution of two fields this year, in Block 17 and another in 15/06,” Mr Lemos said during a press conference marking Sonangol’s 38th anniversary. Production should then continue at the target level for the following five years, he added. Block 17 includes the Total-operated CLOV project, while Block 15/06 is run by ENI. Both are due on stream this year. Angolan oil production averaged just less than 1.72 million bpd in 2013. Lower flows from Blocks Zero, 15, 17 and 18, as well as other technical and contractual factors, were the cause of the company’s reduced output in 2013, said board president Lemos. He pointed to November as the critical period when oil output dropped to just over 47 million barrels. “This fall in production in November explains the overall drop in annual output,” he said. “It ended up being responsible for the decline of around 1 per cent in annual oil production.” This contrasts with a 4.5 per cent rise in production in 2012. Sonangol is awaiting further information from the block operators on the reasons for this reduction in output. More jobs Sonangol EP provided an ever greater number of employment opportunities in 2013 as staff numbers jumped 9% to 8,892 from 8,159 the previous year. There was also good news on gas production as Angola’s liquefied petroleum gas (LPG) output leapt 9% to 298,002 tonnes, and the new Soyo liquefied natural gas (LNG) plant has started to repay investment with its first supplies of 113,178 tonnes. Sonangol EP made a profit of $2.96 billion on its production of just over 626 million barrels. Owing to the fall in production and lower international oil prices, Sonangol EP receipts declined to $34.82 billion in 2013. The average world oil price fell 2.7% to $108.66 in 2013 from $111.65 the previous year, but Angola’s average export barrel Profits continue to be healthy in 2013 48 SONANGOL UNIVERSO Sonangol results Sonangol EP made a profit of $2.96 billion on its production of just over 626 million barrels Financial highlights 2013 Sales $34.82 billion Ebitda* $5.169 billion Net profits $2.96 billion Investment in production $5.73 billion * Earnings before interest, taxes, depreciation and amortisation ** December 31, 2013 MARCH 2014 49 Sonangol results Shipping operations leapt 50 per cent to 10.9 million barrels transported Angola LNG declined even further to $107.80 from $111.86 in 2012. “The combination of these effects – a drop in production and a fall in price – reduced our sales receipts in the segment of exploration and production by $3.687 billion,” said Mr Lemos. He pointed out that, despite the drop in production, other factors compensated the company’s balance sheet during 2013. Sonangol P&P yielded additional revenue of $1.68 billion; an 11 per cent increase in refined products output allowed a cut of 2 per cent in their imports; and Sonangol’s LPG production quota nearly doubled to 1.2 million barrels. Other positive contributions to the company’s balance sheet came from its shipping operations, which leapt 50 per cent to 10.9 million barrels transported. Sonangol’s housing subsidiary, Sonip, sold 24,904 new homes, compared to 10,500 in 2012, bringing in an extra $426 million into the coffers. While Sonangol Holdings received $132 million in dividends compared to $54 million the previous year. The company’s non-core businesses in telecommunications, health and investment contributed another $100 million. Other matters Mr Lemos touched upon included the fact that Sonangol investment in exploration and production shot up 85.5 per cent to $5.73 billion. Sonangol’s oil-refining production was also higher, rising by 11.1 per cent to Highlights 2013 Oil production 626 million barrels LPG output 298,002 tonnes LNG output 113,178 tonnes Refining capacity 50 SONANGOL UNIVERSO 45,245 barrels per day Sonangol results Francisco de Lemos J Maria Sonangol’s housing subsidiary, Sonip, brought in an extra $426 million Sonangol exports Angola’s oil exports stood at 782,608 barrels in 2013. Asia dominated Angola’s export markets, with China the leading buyer with a take of 45% of the total. Board member Anabela Fonseca said China was likely to continue in first place for some time to come. India occupied second place with 12% and the third largest importer was Taiwan, while the former main market, the United States, now lies in fourth position. Other markets in 2013 were South Africa, Spain, Brazil, Panama, Malaysia, Japan, Ireland and Italy. The company’s debt as of December 31, 2013 stood at $13.49 billion; 25 per cent was short term with maturity within a year and 75 per cent was long term maturing up to 2022. Company debt rose 28 per cent compared to 2012, with an additional $6 billion contracted. Sonangol contributed 86 per cent of its sales to the Angolan government in the form of taxes. During the press conference Anabela Fonseca revealed that Sonangol was winding up its exploration operations in the Qayara and Najmah oilfields in Nineveh province in Iraq's northwest. The decision to leave was taken as a result of the security situation in the area which was preventing development work while Sonangol’s costs were rising. The Iraqi government accepted the company’s declaration of force majeure last year. The fortunes of Sonangol and Angola are inextricably linked. Sonangol affiliate Angola LNG provided more evidence that the future is bright for both when it made its first bulk sale of butane gas from its Soyo facility on March 3. It follows shipments of LNG and LPG, and shows how Angola is progressing towards self-sufficiency in these products while affording new export opportunities. Sonangol’s investment of nearly $6 billion in exploration and production last year, mentioned above by Mr Lemos, is bound to reinforce this process and will be reflected in greater output in 2014 and years to come. p Shutterstock 2,083,776 tonnes, thanks to Luanda’s refinery returning to full capacity of 45,245 bpd, up from 41,068 bpd in 2012. MARCH 2014 51
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