universo28 by universo magazine

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SONANGOL UNIVERSO

Universo DECEMBER 2010

Angola delights Shanghai Expo Sonangol celebrates accelerating growth Rail revival reunites Angola

Art attack

Luanda Triennial enchants

ISSUE 28 â&#x20AC;&#x201C; DECEMBER 2010

INSIDE: oil and gas news

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Universo is the international magazine of Sonangol Board Members Manuel Vicente (President), Anabela Fonseca, Mateus de Brito, Fernando Roberto, Francisco de Lemos, Baptista Sumbe, Sebastião Gaspar Martins

Sonangol Department for Communication & Image Director João Rosa Santos

Corporate Communications Assistants Nadiejda Santos, Lúcio Santos, Cristina Novaes, José Mota, Beatriz Silva, Paula Almeida, Sandra Teixeira, Marta Sousa

Publisher Sheila O’Callaghan

Editor John Kolodziejski

Art Director David Gould

Sub Editor Ron Gribble

Inside this issue

ecember’s issue illustrates well some of the dynamic developments possible since the establishment of Angola’s peace in 2002. Nowhere is this clearer than with the railway system. The Luanda line is now completely rebuilt and ready for service. Two more railways, including the potentially trans-Africa Benguela line, will follow within two years. Another peace dividend examined in the December issue is Luanda’s triennial art event, which is now firmly part of Angola’s cultural calendar. Universo also provides an overview of Sonangol's development and key investment projects as its 35th anniversary approaches. Combining business with pleasure, we attend Angola Day at the 2010 Shanghai Expo, where Angola employed its art and culture to showcase its attraction as a trade and investment partner.

Jonathan Browning

SU28.contents.pp2-3:SU25

Advertising Design Bernd Wojtczack Kamene M Traça

Circulation Manager Matthew Alexander

Project Consultants Nathalie MacCarthy Mauro Perillo

Group President

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: circulation@universo-magazine.com Circulation: 17,000

Angola news briefing Angola backs Guinea-Bissau’s peace bid; Plans to spend $18 billion in power system; US airline Delta to fly to Luanda direct in 2011; Angola’s men’s basketball team makes last 16 of World Championship; IMF heaps praise on Angola’s economic stability programme; Angola rebuilds 5,000 kilometres of roads; $100 million business park plan for Luanda.

John Charles Gasser

Figured out A brief glance at Angola in numbers.

Davenport House 16 Pepper Street, London E14 9RP Tel + 44 20 7510 9595 Fax +44 20 7510 9596 sonangol@impact-media.com Cover: Photolibrary

2 SONANGOL UNIVERSO

6 6

Ticket to ride Angola’s rail network revival revs up with the first test runs on the entirely rebuilt Luanda-Malange line. Two more east-west lines are also well on their way to completion.

16 Art attack Luanda’s triennial arts exhibition is currently offering a multimedia experience aimed at raising the capital’s spirit and sensibilities.

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CONTENTS

Universo is the international magazine of Sonangol

Director João Rosa Santos

Corporate Communications Assistants Nadiejda Santos, Lúcio Santos, Cristina Novaes, José Mota, Beatriz Silva, Paula Almeida, Sandra Teixeira, Marta Sousa

Publisher Sheila O’Callaghan

Editor John Kolodziejski

Art Director David Gould

Sub Editor Ron Gribble

Peter Moeller

Sonangol Department for Communication & Image

Jonathan Browning

Board Members Manuel Vicente (President), Anabela Fonseca, Mateus de Brito, Fernando Roberto, Francisco de Lemos, Baptista Sumbe, Sebastião Gaspar Martins

Inside this issue

Advertising Design Kamene M Traça

Circulation Manager Matthew Alexander

Project Consultants Nathalie MacCarthy Mauro Perillo

Group President

John Charles Gasser

Figured out

Kamene M Traça

Bernd Wojtczack

6 6

26 Angola woos investors

Ticket to ride Angola’s rail network revival revs up with the first test runs on the entirely rebuilt Luanda-Malange line. Two more east-west lines are also well on their way to completion.

Angolan artists took the stage at Shanghai Expo’s Angola Day celebration, providing a memorable musical soundtrack to the country’s efforts to promote greater trade and investment, especially with China, its largest trading partner.

16 Art attack Luanda’s triennial arts exhibition is currently offering a multimedia experience aimed at raising the capital’s spirit and sensibilities.

2 SONANGOL UNIVERSO

news briefing

36 Sonangol’s celebrates Universo looks back at the company’s milestones and major investments ahead of the February 2011 celebrations

46 Happy birthday

Sonangol Cape Verde The company’s diverse portfolio in the prospering island nation 10 years on

50 Inside Angola A serene beauty spot south of Luanda

tion director talks

An interview with Ruben Costa

Jonathan Browning

Cover: Photolibrary

34 Sonangol

40 Sonangol’s produc-

A brief glance at Angola in numbers. Devonport House 16 Pepper Street, London E14 9RP Tel + 44 20 7510 9595 Fax +44 20 7510 9596 sonangol@impact-media.com

Sonangol News

DECEMBER 2010 3

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Figured out

Angola news briefing Final countdown

Angola has held out the hand of friendship to support crisis-stricken Guinea-Bissau. As well as sending a team of police and military experts to help reshape the armed forces and security services, Angola has pledged $30 million to aid this process. George Chicoty, Secretary of State for Foreign Affairs, said Angola wanted to do all it could to help bring stability to the country which has been dogged by military uprisings and violent drug gangs who use the islands as a trafficking point between Europe and Latin America. “We want to change the situation in Guinea-Bissau,” he said. Carlos Gomes Júnior, Guinea-Bissau’s prime minister, visited Angolan President José Eduardo dos Santos in September to thank him for his support and to appeal to Angolan businesses to invest in his country. As president of the Community of Portuguese Language Countries (CPLP), Angola has a mandate to help find solutions for Guinea-Bissau. President Dos Santos said: “It’s important that the CPLP grows harmoniously, taking care that all of its members feel fully integrated and are in conditions of peace, stability and democracy.”

Angola’s men’s basketball team was the only African team to make it to the final 16 of the World Championship in Turkey, after beating Jordan and Germany in the group stages. However, Luis Magalhães’ team was unable to overcome the might of the United States, who came out 121-66 winners, putting Angola out of the tournament. Forward Olimpio Cipriano, who plays for Angolan club Recreativo e Desportivo do Libolo, was the team’s top scorer with an average of 14.8 points per game. Small forward Joaquim “Kikas” Gomes, of Luanda’s Primeiro de Agosto, was second with 13.2 points.

Delta Air Lines has confirmed that it will begin services from Luanda to Atlanta in January 2011. The long-awaited air link will see the first scheduled flights between Angola and the United States, and will significantly reduce travel times. Flights will run three times a week with an Airbus A330-200 flying via Dakar, Senegal. The new route was made possible by the signing of bilateral air agreements between Angola and the US earlier this year. Delta is also working with Angolan carrier TAAG to sell space on the same flights at a future date.

iStockphoto

US airlink

AFP/Getty Images

Carlos Gomes Junior, GuineaBissau’s Prime Minister

Angola will spend $18 billion over the next six years to help end electricity shortages. There will be no more power cuts at the end of this period, Minister of State Carlos Maria da Silva Feijó said. “By 2015 or 2016 we could have our energy problem solved,” he said, adding that the Ministry of Energy would soon be launching tenders for building new dams. There would also be separate investment in transmission lines and distribution networks. The money will come from a newly-created infrastructure fund which will accrue the value of 100,000 barrels of oil per day. Dr Feijó said Angola would be producing 4,000 megawatts of electricity, more than five times current output, within six years.

iStockphoto

$1.255 IMF praise

Powering up

4 SONANGOL UNIVERSO

million people will benefit from the government’s Water for All scheme by 2012

Getty Images

A helping hand

Highway rebuilding More than 5,000 kilometres of roads were rebuilt in Angola between 2008 and 2009 under the National Reconstruction programme. Joaquim Sebastião, director general of the Angolan National Roads Institute (INEA), said more than 7,500km would be rebuilt between 2011 and 2013. Future construction programmes also included repairing and rebuilding 1,400 bridges. Sebastião gave assurances that some construction work, held up because of delays in government payments to foreign firms, would begin again before the end of the year.

The International Monetary Fund (IMF) has praised Angola for its economic stabilisation programme and welcomed plans to set up a sovereign wealth fund. “The macroeconomic situation continues to improve and reforms are beginning to bear fruit,” said Murilo Portugal, the fund’s deputy managing director. Following the IMF’s latest review visit to Angola, the board is to release $353 million of the overall $1.4 billion of loans agreed in November 2009. Although on the path to economic recovery, the high levels of domestic debt have led Angola to revise its 2009 growth trajectory to 5-6 per cent, down from an earlier forecast of 6.7 per cent.

New business park A $100 million industrial park is being built in the Cacuaco suburb of north Luanda. It will have 53 warehouses, office and accommodation blocks and a university research laboratory. The site, known as Kaop Park, will also host several banking units, a business advice centre, lecture hall, medical centre and pharmacy, as well as restaurants. Long-term, Kaop Park is forecast to create more than 3,000 jobs and will focus on helping small businesses. The first phase is due for completion by April 2011.

billion of private investment made outside of the oil sector in Angola in the first quarter of 2010

5.4% public sector salary increase for 2011

7,500 kilometres of roads to be rebuilt in Angola by 2013

1,887

jobs created in the hotel industry in the last two years

27.9

million barrels of oil exported to China in August, making Angola its top supplier

DECEMBER 2010 5

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Figured out

Angola news briefing Final countdown

iStockphoto

US airlink

AFP/Getty Images

Carlos Gomes Junior, GuineaBissau’s Prime Minister

iStockphoto

$1.255 IMF praise

Powering up

4 SONANGOL UNIVERSO

million people will benefit from the government’s Water for All scheme by 2012

Getty Images

A helping hand

billion of private investment made outside of the oil sector in Angola in the first quarter of 2010

5.4% public sector salary increase for 2011

7,500 kilometres of roads to be rebuilt in Angola by 2013

1,887

jobs created in the hotel industry in the last two years

27.9

million barrels of oil exported to China in August, making Angola its top supplier

DECEMBER 2010 5

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TRAINS

TICKET TO RIDE

Pictures: Kamene M Traça

After years of inactivity, Angola’s railways are back on track to serve cut-off communities and boost the fortunes of small farmers with produce to send to market. Universo was treated to a test run on the Luanda-Malange line ahead of its reopening later this year ➔

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TRAINS

TICKET TO RIDE

Pictures: Kamene M Traça

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TRAINS

New stations are sprouting along the new lines

hen we gathered at Baía Station on the outskirts of Luanda where the train awaited us, its giant diesel engine humming expectantly, it was still dark. A night chill hung in the air, but we were too excited to feel the cold – for this was only the second occasion in two decades on which the train was making the 424-km journey all the way to Malange. We were travelling as guests of the Luanda Railway Company or Caminho de Ferro de Luanda, commonly known as the CFL, which was making an inspection tour of the route, ahead of the planned reopening to traffic by the end of the year. Climbing on board just before 6am, we stowed our luggage, took our seats and then with a sharp toot and big chug, we were off. Day had broken by the time we reached our first stop at Catete, the birthplace of Angola’s first president, Agostinho Neto. Here we were able to have a good look at the impressive glass-fronted station. The new building has two floors with a large open waiting area as well as several corridors of offices and administration rooms. The giant white letters spelling out CATETE can be seen for miles around.

21st-century interiors

Ending isolation

Mural remembers steam past

8 SONANGOL UNIVERSO

This and the other 15 stations, along with the new track and repositioned platforms, have been built by the China Railway Construction Corporation (CRCC). Trains have been running along the CFL across the eastern suburbs of Luanda for several years, offering a vital alternative to overcrowded roads, but only now has the full length of the route through to Malange become fit for operations. The restoration of the service is being hailed as a major accomplishment for Angola’s post-war reconstruction, reconnecting many rural communities that have been cut off from the railway for years. As the sun rose and the train rolled on, we were given a warm welcome. On approaching each station, groups of excited children ran onto the platforms chanting “comboio, comboio”, the Portuguese word for train. “I’m very happy to see the train today because it’s been nearly 20 years since I DECEMBER 2010 9

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TRAINS

New stations are sprouting along the new lines

21st-century interiors

Ending isolation

Mural remembers steam past

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TRAINS

“ Teresa can now take produce to market

last saw it here,” said José Paulino Cardoso, the soba, or traditional chief, of the rural village of Canhoca, roughly one third of the way between Luanda and Malange. Greeting us, local farmer Joaquim Miguel, 29, enthused: “The people working on the land here have not been able to get their crops to the cities, but now with the train we have a good thing. We are going to produce more, and our community will become more developed as a result.”

Market link Teresa Manuel Jorge, 48, also from Ca – nhoca, added: “We need this train. Our land is producing a lot. We have plenty of cassava as well as potatoes. The train will help us transport our goods to Luanda so that we can sell them. We are very happy to see the train coming through here again after all these years.” Further along the route at N’dalatando, the capital of Kwanza Norte province, a large crowd gathered on both sides of the track to greet the train as it pulled into the station. “My mother has told me many stories about the train and how it used to be, but now I can see it for myself. I can’t wait to get on it and take a ride,” said 17-year-old Castel Raimundo. Passenger well-being is another advantage of Angola’s rail revival. “It’s going 10 SONANGOL UNIVERSO

to be much safer to travel by train than by minibus taxi,” said labourer João Domingos, 36. “There are too many accidents on the roads. The train will offer us a quicker and safer alternative.”

Peace train For some, though, the return of the train is as symbolic as it is useful. One woman, who had stopped to watch the train pull in at the small station of Luinha, said simply: “I am happy that the train is here because it means we are at peace.”

We need this train. Our land is producing a lot. We have plenty of cassava as well as potatoes. The train will help us transport our goods to Luanda so that we can sell them

”

Step inside Expresso class

Teresa Manuel Jorge, Canhoca

Agreeing with this sentiment, and shared by many we spoke to along the way, Angola’s Deputy Minister of Transport José João Kuvingua, who was travelling with the CFL delegation, said: “This train is a symbol of Angola’s peace and development, because without peace it wouldn’t be possible to run this train.” Pointing at the new track as we made one of many stops along our journey, the deputy minister said: “This is what Deputy transport minister Kuvingua (left) and CFL president Nascimento (centre)

Big, noisy and diesel, you can hear a Luanda railway train approaching from a long way off. You can spot it clearly in the distance too because all the carriages are brightly painted in the Angolan colours of red, black and yellow. Inside they are clean and modern with air conditioning, toilets and a restaurant car. There are three travel classes, the luxurious ‘Primeira’, the comfortable ‘Expresso’ and the more practical ‘Tramueis’. Primeira boasts leather reclining seats, and each passenger has an individual video screen; Expresso passengers face each other and are able to view communal

screens; while in Tramueis, the cheapest section, people have basic seating alongside standing areas. Fares from Luanda to Malange are expected to cost from around $25, according to CFL president Osvaldo Lobo do Nascimento, although no final decisions have yet been made on ticket prices. The 424-km journey, linking 16 stations through four provinces, is scheduled to take around eight hours. The reopening of the railway from Luanda to Malange, originally built in 1909, will form part of the celebrations of Angola’s 35 years of independence from Portugal.

PMP Global

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Train link will develop new markets

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“ Teresa can now take produce to market

We need this train. Our land is producing a lot. We have plenty of cassava as well as potatoes. The train will help us transport our goods to Luanda so that we can sell them

”

Step inside Expresso class

Teresa Manuel Jorge, Canhoca

PMP Global

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Train link will develop new markets

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TRAINS

Trains run in the Acácio family. António’s grandfather and father both worked for the Luanda Railway Company. He joined the company in 1975 just after Angola’s independence, and now his son is working for CFL as well. “I’d always wanted to work on the railways, and my son too,” he explained. “I hope that my grandchildren will follow us and be part of the new generation with the CFL.” The 57-year-old has been driving trains for 33 of his 35 years of service with the company. He is now in charge of training the new drivers who will operate the Luanda to Malange passenger service when it restarts later this year. It was only natural that Antonio should have been chosen to take charge of the train on its full test trip. “I am very proud; it is a great honour to be driving the train for the members of the board of the CFL,” he said. “I am also very happy that after all these years out of service, we are now taking the train back to the people who so badly need this form of transport.” Remembering darker days in his career, Antonio recalled driving the train during Angola’s conflict, transporting troops and cargo to key logistical points. With the railways a major target for land-mines and ambush attacks by rebels, every journey held a high risk of injury or death. “We would set off with our hearts in our hands, and we never knew when we would return,” he said. “Fortunately most of us made it back…although, of course, some didn’t. But now this is all behind us, and we have a new generation of trains and drivers to take the train into the future. “For me, being able to train the new drivers is a wonderful honour and gives me real professional satisfaction.”

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Acácio senior and junior

“

Restoring the train will bring many benefits, not just to individuals but to our national economy, and we are very proud of that fact

progress means. Before, the track had literally sunk; there was nothing there. Now it has been totally restored and is ready to be used again. The train is really going to help a lot of Angolans, especially people from the poorest areas, because it is the means of transport which allows them to carry the most at the lowest cost.”

”

Lobo do Nascimento CFL president

Day-trippers “We are proud of the line’s restoration, and I think that everyone in Angola, particularly in this region, should be proud because they have all helped make it happen in different ways,” he added. Kuvingua also said the long-term plan was to build a secondary track following a straighter and more direct route from N’dalatando to Malange, but keep the original line which passes through the stunning green landscape of Kwanza Norte and up the steep Morro do Binda for tourists and day-trippers. The estimated cost of rebuilding the

CFL is $350 million, and many Angolans have been employed alongside the Chinese workforce in constructing the new stations. Most stations are modern and painted in bright pink and orange, with steel and glass fronts and open-plan waiting rooms. In contrast, you can still see some of the old brick colonial stations, now crumbling and vandalised memories of a fading past. CFL president Osvaldo Lobo do Nascimento said the plan was to restore some of

the old structures, but most were beyond repair. “It’s a shame,” he said, “but some were just so degraded it was not possible. They are, of course, an important memory of how the railway used to be, and we want to make a museum at Catete for everyone to see what it used to be like.” He said 175 new jobs had been created ahead of the full reopening of the line, and training was underway for the new staff working in all areas from ticket offices to track maintenance. Speaking at the end of the journey, which had involved countless stops at stations and pauses to inspect the track and signalling, Lobo do Nascimento said he was pleased with progress and hoped CFL inspectors would sign-off on construction work within weeks in preparation for the line’s relaunch. “Restoring the train will bring many benefits,” he concluded, “not just to individuals but to our national economy, and we are very proud of that fact.”

Skip Brown/National Geographic Society/Corbis

Father and son enginemen

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Acácio senior and junior

“

Restoring the train will bring many benefits, not just to individuals but to our national economy, and we are very proud of that fact

”

Lobo do Nascimento CFL president

Skip Brown/National Geographic Society/Corbis

Father and son enginemen

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CONGO TRAINS

DEMOCRATIC REPUBLIC OF THE

Angola’s famous three

CONGO

The Luanda Railway Company runs eastward out of Luanda, through the dry flat fields of Bengo with its striking forests of baobab trees, into the lush greenness of Kwanza Norte and up into the magical rolling hills and plains of Malange. At times the track runs right in front of homes, while at others it is in splendid isolation in the middle of deep-green banana plantations or with just a bare rock face for company. The CFL is the first of three train lines to come back into full service, and by the end of 2012, Angola hopes to have all of them fully operational again for freight and passengers. The Benguela Railway (CFB) is the longest railroad in Angola, stretching 1,344-km from the port city of Lobito on the Atlantic coast over to the small town of Luau, on the border of the Democratic Republic of Congo. A small stretch of track is in use between Lobito and Cubal in Huambo province, but the plan is to extend passenger services to Huambo city by early 2011. In the very south of the country, the Moçâmedes Railway

Luanda-Malange reopening end of 2010 Luanda N'dalatando

Catete

Malange

Luinha

Luau

ATLANTIC

Benguela-Luau

(CFM) will connect Namibe on the coast to Lubango on the Huila plateau, then on to Menongue in Kuando Kubango province.

Majestic baobabs ornament Angola’s countryside

reopening by end of 2012 (to Huambo by end of 2011)

OCEAN

Menongue bridge – CFM

Luena Lobito

Huambo

Benguela

Kuito

Cubal

Lubango

Menongue Matala

ZAMBIA

Namibe

Namibe-Menongue reopening by end of 2012

National capital Provincial capital Town, village

International boundary Provincial boundary

iStockphoto

NAMIBIA 0

100

150 200 km

ANGOLA DECEMBER 2010 15

100

150 mi

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CONGO TRAINS

DEMOCRATIC REPUBLIC OF THE

Angola’s famous three

CONGO

Luanda-Malange reopening end of 2010 Luanda N'dalatando

Catete

Malange

Luinha

Luau

ATLANTIC

Benguela-Luau

(CFM) will connect Namibe on the coast to Lubango on the Huila plateau, then on to Menongue in Kuando Kubango province.

Majestic baobabs ornament Angola’s countryside

reopening by end of 2012 (to Huambo by end of 2011)

OCEAN

Menongue bridge – CFM

Luena Lobito

Huambo

Benguela

Kuito

Cubal

Lubango

Menongue Matala

ZAMBIA

Namibe

Namibe-Menongue reopening by end of 2012

National capital Provincial capital Town, village

International boundary Provincial boundary

iStockphoto

NAMIBIA 0

100

150 200 km

ANGOLA DECEMBER 2010 15

100

150 mi

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ART

TRIENNIAL -

ART ATTACK

Photolibrary

Luanda’s second arts festival, Trienal de Luanda, is underway, providing a season of multimedia emotional experiences aimed at arousing public artistic awareness. Universo prowled the venues ➔

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ART

TRIENNIAL -

ART ATTACK

Photolibrary

Luanda’s second arts festival, Trienal de Luanda, is underway, providing a season of multimedia emotional experiences aimed at arousing public artistic awareness. Universo prowled the venues ➔

16 SONANGOL UNIVERSO

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ART

he 2010 Luanda Triennial, the threemonth-long contemporary arts feast, has taken over Angola’s capital with four permanent exhibitions and a newly-restored cinema hosting different events every night. The free event launched in mid-September to a top-level audience which included the Minister of Culture, Rosa Cruz e Silva, and the Governor of Luanda, Francisca do Espírito Santo. The theme of the triennial is “Emotional Geographies: Art and Effects”. Fernando Alvim, director of the Sindika Dokolo Foundation which organised and funded the event to the tune of $2 million, explained that it was very much about the city of Luanda – not just located within it.

Hybrid city “This is a triennial which has emerged from the experience of Luanda, all the metamorphoses that we have in this very hybrid city, linked to its history and past,” he said. Black-and-white portraits, pictures of men in drag, acoustic music, video art, cinema, contemporary dance, and fashion and theatre are just some of the dishes being served up at this year’s event, featuring more than 100 artists, debates on architecture and aesthetics, and street

“Through this triennial we want the artist to be a form of alchemist. It’s the idea that they can reflect on art in a new space and create more autonomy, be it in thought or action,” explained Alvim, who is himself an artist. There are seven visual exhibitions including African photography, Angolan architecture and Angolan video, each running for several weeks at a time across the four main gallery spaces. One of them is at the Cine Nacional, which has just had a refurbishment costing almost $1 million and will host daily events ranging from live music, dance and theatre performances to film showings, comedy and lectures. “This is really a legacy for the post-triennial,” said Marita Silva, the event project co-ordinator. “It was restored not just for the triennial but for the city of Luanda.” There is also an education programme involving 70,000 schoolchildren in the capital, and a series of television programmes on the triennial with the participation of the artists. These will be shown on Angolan TV in a bid to contact a wider audience.

performances as well as an exhibition of ancient African masks. Alvim describes the triennial as “a cultural movement” where the idea is to create “a platform so that the artist can display his or her artistic experiences without being conditioned by the art system”. Or, put simply, he wants the festival to show artists and their work as themselves and not shaped in the context of a themed or curated exhibition.

Pictures: Kamene M Traça

Fernando Alvim triennial organiser

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Artist Kamene M Traça and model Nayma

An inspiration While many of the Angolan artists taking part are using Luanda as their inspiration, Kiluanji Kia Henda, for example, with his “Versus Carnival” photographs, subverts

Sleek new venue: the Milennium gallery DECEMBER 2010 19

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ART

Pictures: Kamene M Traça

Fernando Alvim triennial organiser

18 SONANGOL UNIVERSO

Artist Kamene M Traça and model Nayma

An inspiration While many of the Angolan artists taking part are using Luanda as their inspiration, Kiluanji Kia Henda, for example, with his “Versus Carnival” photographs, subverts

Sleek new venue: the Milennium gallery DECEMBER 2010 19

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ART

There is also a special exhibition of photographs about Angolans living in Salvador in Brazil as well as a display of ancient masks from the Chokwe kingdom in eastern Angola

Paulo Azevedo – Video artist

“Everything starts with art, even a car, as it needs to be designed before it can be made. Art gives a lot to people and it also helps us reflect and philosophise. Every society needs art to give a balance, to help people see life and to see the light in the corner.” Paulo Azevedo is a photographer and video artist and one of the many Angolans who, after a lengthy spell abroad during the conflict years, are now back home to share the fruits of peace. The 36-year-old has a number of pictures in the triennial, but his main role has been to film interviews with the other artists involved and document on camera the event’s buildup and preparation. With camera still firmly in hand on the opening night, Paulo has taken his job seriously. His programmes will be broadcast on Angolan television during the festival with a view to engaging a wider audience and attracting more people to the exhibitions.

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Downtown Luanda through Paulo’s lens

the themes of the city’s annual street parade. There are also many international artists on the roll call. Among them are star names such as British/Nigerian Turner Prize winner Chris Ofili, controversial South African Kendell Geer, Ethiopian-Swiss Loulou Cherinet, New York-based Egyptian Ghada Amer; Abdoulaye Konaté and Seydou Keita from Mali, Nigeria’s Yinka Shonibare and Samuel Fosso from Cameroon. There is also a special exhibition of photographs about Angolans living in Salvador in Brazil, as well as a display of ancient masks from the Chokwe kingdom in eastern Angola. The first triennial was held three years ago to much critical acclaim, putting the Sindika Dokolo Foundation firmly on the contemporary art map, and leading to wellattended shows in France, Italy and Brazil. Some of the works on show belong to Dokolo’s private collection, said to be one of the biggest of contemporary African art in the world. Others have been brought to Luanda especially for the occasion. Angolan actor and playwright Orlando Sergio, who during the triennial is staging his comedy Armed Robbery and taking part in a public debate at Cine Nacional, said the arts festival brought a new dimension to Angola’s cultural scene.

Left to right: Francisca do Espírito Santo, Fernando Alvim, Rosa Cruz e Silva, Bornito de Sousa

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There is also a special exhibition of photographs about Angolans living in Salvador in Brazil as well as a display of ancient masks from the Chokwe kingdom in eastern Angola

Paulo Azevedo – Video artist

20 SONANGOL UNIVERSO

Downtown Luanda through Paulo’s lens

Left to right: Francisca do Espírito Santo, Fernando Alvim, Rosa Cruz e Silva, Bornito de Sousa

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“There are not many exhibitions of art and photography in Angola. This is a unique opportunity for the artists taking part and also for the public to see their work. We hope the triennial will bring curators and experts to Luanda to see the work on show,” said Sergio. “It is hard for Angolan artists to have that exchange with other countries, even in Africa, because travel is difficult and communications hard. This is a big chance to create more knowledge of what Angola has to offer.”

Mussorongo

Soul space In a city with just a handful of galleries, the triennial certainly offers a rare chance for cultural immersion for residents and visitors alike. Event director Alvim said he wanted to create “spaces where people on a Sunday afternoon or at the end of a day, can go into an exhibition. Art is probably the only space today that permits us to have a space for the soul, a space that allows people to reflect on their existence and their relations with the world.” Making all the events free of charge was key to this concept of inclusivity, Alvim said, and he hoped this would attract more people to the exhibitions. During the triennial, the four fixed sites will show 400 pieces of work. Alvim is also very excited about plans to paint billboards across the city. “There will be more than 400 large-scale images,” he said. “People just crossing the city have already started to see on an aesthetic level everything linked to the triennial.” Asked what the 2010 triennial will do for Angola, Alvim referred back to 2007. “After the first triennial, we had many artists who had been working but not had space to show their work. The event created a platform for them, and some have gone on to take part in international shows. “In terms of benefits to the country, we can’t compare it to something like the Africa Cup of Nations football tournament which Angola hosted earlier this year; it is a long-term impact which is less instantly visible. In culture we work for the future generations.” 22 SONANGOL UNIVERSO

Kiluanji Kia Henda Kiluanji Kia Henda is a self-taught photographic artist who got his big break at the 2007 triennial. Aged 31, he is now a star in Angolan contemporary art circles, having exhibited in France, at the Venice Biennial and, more recently, at the São Paulo Biennial in Brazil. One of Kiluanji’s most eyecatching pictures is “Mussorongo” depicting a black man on a white background, bent forward and with a wide-eyed expression. “The Mussorongo tribe comes from the north of Angola but it is also a word we use here in Luanda to describe someone who finds things difficult to understand or who gets really angry,” the artist explained. The picture is part of a series of six based on Luanda’s annual street carnival called “Versus Carnival”. “There are many photographers who work on carnival already and I didn’t just want to repeat this,” he said, “so I took the basic elements of carnival

– Photo artist and turned them around. “Carnival is very colourful, so my picture is black and white; carnival involves lots of people, so I have just one person; carnival is on the street in public, this was done in a private studio. It’s about subverting the carnival concepts, that’s why I have called it Versus Carnival,” said Kiluanji. Like many Angolan artists, Kiluanji has a lot to gain from the triennial. “It’s a moment for me to show my work to people who understand the context of what I’m working on. I personally grew a lot from the first triennial.” Kiluanji, who works out of a small studio in Hotel Globo, down the corridor from the offices of the Sindika Dokolo Foundation where some of his work will be on display, said he was also happy to be able to appreciate the work of other artists. “It is an opportunity to have some good contemporary art here in Luanda, something we don’t see very often. Now we can have the big names of the African and international art scene here in our city.”

Kiluanji Kia Henda

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Mussorongo

Kiluanji Kia Henda

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Photos by Cameroon’s Samuel Fosso

Binelde Hycran Semedo Tavares – Multi-media man Luanda, Los Angeles, Monaco, UK, France, Spain and Portugal…there are plenty of influences in Hycran’s work, but what he wants most of all is to understand and portray his birthplace, Luanda. In his three-minute video, which he filmed on the Ilha using a group of boys who had never acted before, Hycran wanted to prove reality is art but that art is also reality. Aged 28, he moved to France in 1998 and studied art in Monaco, a growing hub for edgy contemporary art. His recent projects have included making a chair from an old computer keyboard and designing a Ladurée macaroon, a luxury Parisian pastry, like an oil barrel (“to represent the ultimate commodity”, he explained). He has also dabbled in some street art, earlier this year sitting in a cage in Monaco and asking people to move him around. “We have works on show here from many other countries in Africa; pictures from people such as Yinka Shonibare and

24 SONANGOL UNIVERSO

Seydou Keita. These are important works and they are here, in Luanda, because of the Sindika Dokolo Foundation.” Full of praise for director Fernando Alvim and the foundation, Hycran said it was a “dream” for him to take part in the 2010 triennial.

Future art hub “Luanda is going to be a famous place for people to come and see art in the future. I really believe that,” said Hycran. “People here love new things and change: we were at war for 27 years, so now we want to go on, grow up, change, move forward, and be high. We were hidden, but this is our time. Angola has a time and it is now. “In five or ten years, Angola is going to be an art destination like Venice or Paris because here we have great artists such as Fernando and Kiluanji and many others, so we must just wait.”

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Photos by Cameroon’s Samuel Fosso

24 SONANGOL UNIVERSO

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2010 EXPO SHANGHAI CHINA

ANGOLA WOOS Pictures: Jonathan Browning

INVESTORS

26 SONANGOL UNIVERSO

A special Angola Day programme capped the country’s participation in the 2010 Shanghai Expo, stylishly showcasing Angola and its investment prospects. Universo saw the highlights ➔

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2010 EXPO SHANGHAI CHINA

ANGOLA WOOS Pictures: Jonathan Browning

INVESTORS

26 SONANGOL UNIVERSO

A special Angola Day programme capped the country’s participation in the 2010 Shanghai Expo, stylishly showcasing Angola and its investment prospects. Universo saw the highlights ➔

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EXPO 2010

Strutting their stuff: Sónia Cunha and the Welwitschias

mix of vibrant dance and music provided the background as Angolan representatives delivered a clear message on the country’s openness to foreign investment. And a kaleidoscope of artistic performances in front of Chinese and Angolan authorities celebrated the ties between the two countries, displaying, Angola’s cultural diversity.

Flagging up opportunities Angola Day began with the hoisting of the country’s flag over the Expo site, perched on the banks of the Huangpu River in central Shanghai, opposite the city’s famous stock exchange. Angolan Vice-President Fernando da Piedade Dias dos Santos then addressed the audience, urging Chinese officials and businessmen to invest in Angola, stating that the country represented a “safe and stable” environment for foreign companies. Underlining the significance of the economic, fiscal and social reforms underway in Angola, he said the measures were internationally accepted as necessary steps towards creating a more stable and sustainable macroeconomic environment. “We are counting on our several partners, domestic and foreign, and especially the People’s Republic of China which has co-operated with Angola’s development and reconstruction through its banks and companies,” he said.

Artistic talent, cultural colour The programme for this special day was organised by the Angolan National Committee for the Expo. An impressive lineup of Angolan artistic talent brought local colour to the cultural part of the event. The star-studded cast included names well known in the Angolan cultural scene, such as Bruno M, Margareth do Rosário, Kilandukilo, Yuri Cunha, Bonga, Danny-L and Nanutu. In the main hall at the Expo Centre – specially designed for official ceremonies – Angolan artists put on captivating performances featuring Angolan rhythms and dances. Members of the dance troupe Welwitschias twirled around the stage 28 SONANGOL UNIVERSO

Fernando da Piedade Dias dos Santos, Vice president

Dodó Miranda, Margareth do Rosário, Gingas, Euclides Bumba and Welwitschias

The Kilandukilo

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EXPO 2010

Strutting their stuff: Sónia Cunha and the Welwitschias

Fernando da Piedade Dias dos Santos, Vice president

Dodó Miranda, Margareth do Rosário, Gingas, Euclides Bumba and Welwitschias

The Kilandukilo

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2010 EXPO SHANGHAI CHINA

Wang Changshun, vice minister for Civil Aviation

João Rosa Santos, Sonangol’s communications director

“

This is an excellent chance to expand the connection between our countries

while the audience watched transfixed. They were followed by the Kilandukilo folklore group. Dressed in traditional tribal costumes, they danced to the sound of instruments such as the djembé and reco-reco, and waved decorative weapons, much to the delight of Chinese members of the audience who enjoyed the spontaneous and uninhibited nature of the performance.

Biggest investment partner The considerable effort that went into the show underlined the huge importance that China has begun to take on for Angola over the last decade. “The growing trust within our bilateral relations has continued to develop and our co-operation has been rewarded with success in every sector [in which China has invested]”, said Wang Changshun, China’s vice minister for Civil Aviation, who 30 SONANGOL UNIVERSO

”

João Rosa Santos, head of Sonangol communications

was shown around the Angolan pavilion by Vice President Dias dos Santos. China has become Angola’s biggest trading partner and is a key player in the reconstruction of the country. Since 2004, China’s Export-Import Bank has extended over $4 billion in oil-backed loans, most of it to finance infrastructure projects in Angola. In addition, Angola secured three credit lines with China at the end of last year amounting to $10 billion, according to the World Bank.

Sonangol: key to China trade Angola is central to China’s growing energy demands and Sonangol is a strategic player in that relationship, since Angola’s main export to China is oil. According to the Chinese National Bureau of Statistics, in the first half of 2010 Angola was China’s largest source of imported crude oil. Imports reached nearly 22 million metric tons, 76

per cent more than in the same period the previous year, as the Chinese economy continued to recover strongly from the global financial crisis. João Rosa Santos, head of Sonangol’s department of communication, said that China had become an exceptional partner and that Angola’s presence at the Expo represented a unique opportunity to further those ties. “This is an excellent chance to expand the connection between our countries,” he said. Rosa Santos added that Sonangol, as Angola’s biggest oil company, has taken a leadership role in the commercial exchanges. China is the second-largest oil consumer in the world after the United States, and its demand is still growing rapidly. The International Energy Agency forecasts China’s oil imports will reach over 13 million barrels per day (bpd) by 2030, from 3.5 million bpd in 2006. Even though a big chunk of its oil imports come from the Middle East, the DECEMBER 2010 31

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Wang Changshun, vice minister for Civil Aviation

João Rosa Santos, Sonangol’s communications director

“

This is an excellent chance to expand the connection between our countries

”

João Rosa Santos, head of Sonangol communications

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“

Matos Cardoso, Head of Angola’s Shanghai business forum

country is seeking to import more from Africa. As a result of such booming business, the subsidiary China-Sonangol was established in 2004 with offices in Beijing. “Sonangol is at the centre of China-Angola relations,” said Matos Cardoso, head of the Angolan business forum in Shanghai. It represents the model business in our market, and its partnership with China helps the advance of other sectors and companies. As a result, it has the ability to boost the Angolan economy as a whole.”

Stepping up the pace In an effort to capitalise on the trade momentum between the two countries, Angolan businessmen and government officials organised an Angolan business forum in Shanghai soon after Angola Day. The forum was an ideal opportunity to spread more information on the investment prospects in Angola for Chinese companies. “The relationship between China and Angola has evolved rapidly, allowing for an increasing number of projects focused on a better quality of life in our country,” said Matos Cardoso. Chinese investment in the country has been a major force behind the growth of Angolan industry, as well as its infrastructure sector, he said. “The improvement in infrastructure leads to a rise in domestic and agricultural output and, as a consequence, to better social conditions.” As a result of the events in Shanghai, Chinese 32 SONANGOL UNIVERSO

presence at the next International Fair in Luanda will be strong, demonstrating that the country’s efforts at the Expo were paying off, said Cardoso.

Sustainable development At the heart of the Expo is the idea of sustainable development, embodied by its theme “Better City, Better Life”. As it draws to a close, Expo is expected to surpass the 70 million visitors initially forecast by the Chinese government. Local and central governments invested heavily in improving Shanghai’s infrastructure, extending underground train lines and expanding other transport links to the new Expo site. Over 4,000 new taxicabs were added to the city’s fleet and

The relationship between China and Angola has evolved rapidly, allowing for an increasing number of projects focused on a better quality of living in our country

4-D experience: trip to Angola

”

Matos Cardoso, head of the business forum

1.7 million people trained as volunteers to assist visitors. The investment made in the Expo site alone is estimated at $4.2 billion. Élio Gambôa, director of the Angolan pavilion, stressed that the purpose of the country’s representation was to present the Chinese with a rich, multifaceted portrait of a new Angola, full of business potential, as well as an exciting tourist destination. In the pavilion, a collection of images and sounds reflected the country’s identity. This started with the 4-D experience, a 3-D film watched in a cinema with the seats of the audience moving according to the Stamp of approval: passport to Angola

terrain seen on the screen. The film showed Angola’s famous attractions, such as the Kalandula Falls and Mussulo Beach. The Angolan pavilion also showcased some of the country’s other attractions, including pictures of the prehistoric cave paintings found in the south of Angola and a replica of the portico of the 15th-century Kulumbimbi Cathedral. By Angola Day in late September, the number of visitors to the pavilion had exceeded 56 million, demonstrating the strong interest among Chinese visitors, some of whom queued for over an hour. As in the other 190 pavilions, after leaving the Angolan display visitors proudly collected a “visa” stamp on their Shanghai Expo passport, showing they had been to Angola. The Angolan authorities hope that some of the visitors will be tempted to get a real visa and spend some time in the country.

Angola-China trade growth Trade between China and Angola has developed at a breakneck pace. Bilateral trade did not exceed $700 million in a single year during the 1990s, but trade volume grew rapidly in the first decade of this century, reaching nearly $7 billion in 2005. In the following year, Angola became China’s biggest partner in Africa, with bilateral trade rising to $12 billion, and expansion has continued sharply since then.

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“

Matos Cardoso, Head of Angola’s Shanghai business forum

presence at the next International Fair in Luanda will be strong, demonstrating that the country’s efforts at the Expo were paying off, said Cardoso.

The relationship between China and Angola has evolved rapidly, allowing for an increasing number of projects focused on a better quality of living in our country

4-D experience: trip to Angola

”

Matos Cardoso, head of the business forum

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Sonangol news briefing

NEWS

New discovery

Rig safety

34 SONANGOL UNIVERSO

Sonangol book prizewinner

China has confirmed that Angola became its biggest oil supplier for August this year. Citing figures from the Chinese Customs Bureau, the Beijing-based Global Times said Angola sent 27.9 million barrels of oil during the month, accounting for over 19 per cent of total oil imports to the Asian economic giant.

creating a prize which gave “an incentive to aesthetic creation and scientific production, as well as an exchange of experiences” between the cultures of the countries taking part. The annual competition is open to all Portuguese-speaking African countries and began in 1987. Panel president Corsino Fortes said there were plans to extend the competition to East Timor, also a member of the Community of Portuguese Language Countries. This year’s winner will receive his award on February 25, Sonangol’s 35th anniversary.

African partners São Tomé and Príncipe is keen for African oil companies such as Sonangol to be its partner in upcoming oil exploration. International oil firms ConocoPhillips Chevron, Petrobras and Tullow are bidding for rights to explore for oil off the coast of São Tomé in the Gulf of Guinea. But during a recent visit to Luanda, Patrice Trovoada, Prime Minister of São Tomé and Principe, told Reuters: “If there is oil, this oil is in Africa and it should be for the African people. Therefore, there is a preference towards African companies.” The bidding was expected to end on September 15, but has been extended to give firms such as Sonangol more time, he said.

Angolan farmers are set to benefit from byproducts from the new Angola liquefied natural gas (LNG) plant under construction in the north of the country. An ammonia and pesticide factory is planned alongside the LNG plant. Ammonia is a raw material used in the production of fertilisers. The idea is to create an industrial and development hub at the LNG factory site at Soyo in Zaire province, said Pedro Katendi, national director for Agro-Industry. Angola LNG is a stock-based company made up of Chevron (36.4%), Sonagas (22.8%) and Total, Eni and BP (each with 13.6%). Construction is expected to cost $8 to $10 billion and will produce around 5.2 million tonnes of LNG and related products for export to the United States, Europe and Asia.

China’s largest supplier

Hub role

Brazil prospects

Sarah Monaghan

The 2011 Sonangol Grand Literature Prize has been unanimously awarded to João Lopes Filho, who uses the pen name Osagyeto Moisés. The Cape Verdean writer won the $50,000 prize for his book Percursos & Destinos (Routes & Destinations). His book describes the social processes and cultural history of the people of the Cape Verde Islands. The judges said the book was “audacious, detailed and descriptive” in its portrayal of the history of Cape Verde’s people. They also praised Sonangol for

LNG boost for crops

Angola’s Oil Minister José Maria Botelho de Vasconcelos has pledged a more rigorous approach to protect the country from an environmental disaster such as the one which recently struck the Gulf of Mexico. “We have worked very closely with the oil companies in a bid to fine-tune and adjust existing mechanisms so as to carry out that monitoring,” Vasconcelos told Radio Nacional de Angola. However, he stressed that safety procedures had always been extremely thorough in Angola.

Sonangol was among the many oil companies taking part in the prestigious Rio Oil & Gas Expo and Conference, the biggest of its kind in Latin America. Speaking on the sidelines of the event in September, Cândido Cardoso, president of Sonangol in Brazil, said the company had much to gain from investing in the country and that it offered “interesting prospects”. Sonangol has projects in three blocks offshore Brazil, which shares similar geology with Angola, and in August 2009 it took control of Brazilian oil company Starfish. “From a technical point of view, both Angola and Brazil have things to gain in exchanging experiences from across both sides of the Atlantic,” said Cardoso. “Brazil means a lot to Sonangol. Brazil and Petrobras have ties that date back to the beginning of Sonangol.”

André Vieira

➔

iStockphoto.com

artners in Block 15/06 have announced a new discovery. The Cabaça South East-2 oil well is located at a depth of 470 metres, about 100km off the coast. The appraisal well has boosted initial oil-in-place estimates by about 30 per cent, increasing the likelihood that a second production hub is on the cards for the deepwater block. Eni has a 35 per cent working interest and is the operator in Block 15/06, while Sonangol is the concessionaire. Other partners are SSI Fifteen (20%), Sonangol E&P (15%), Total (15%), Falcon Oil Holding Angola (5%), Petrobras (5%) and Statoil (5%). The same partners in Block 15/06 announced a new commercial deep-sea find at the Mpungi-1 well on October 18. Initial flow was 6,000 barrels of oil a day. The well is 120km off the coast and 1,050 metres below the waves, while its reservoir lies a further 600 metres under the sea floor.

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President José Eduardo dos Santos has entrusted Sonangol with the task of promoting development hubs, previously the responsibility of the National Reconstruction Cabinet. He announced the transfer of the projects of Kilamba Kiaxi, Zango and Cacuaco to Sonangol in Luanda on October 26. Speaking at Kilamba Kiaxi, the president said Sonangol’s property-develoment arm, Sonangol Imobiliária, would take care of all areas of the project as well as the sale of areas and buildings in other development hubs planned for Cabinda, Kuando-Kubango and Dundo. President dos Santos also put Sonangol in charge of the Luanda-Bengo Special Economic Zone (ZEE) project. The president said he hoped the ZEE development would be co-ordinated with that of Kilamba Kiaxi and that at least 14,000 people would be employed in the 70 factory units planned. He added that he wanted the Kilamba Kiaxi development hub to be ‘a model’ project.

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NEWS

New discovery

Rig safety

34 SONANGOL UNIVERSO

Sonangol book prizewinner

China’s largest supplier

Hub role

Brazil prospects

Sarah Monaghan

LNG boost for crops

André Vieira

➔

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SONANGOL:

Hello to the new

-year milestone

of success beckons

n accelerating rise in oil output, heavy investment in gas and refining, alongside diversification into a range of new business areas, encapsulates the Sonangol story over the last three and a half decades. State-owned Sonangol has always been run on similar lines to a private company, having to meet strict standards to ensure efficiency and productivity. Proof that Sonangol has stepped up to the plate appears in some impressive figures, achieved regardless of having investment sidetracked by a crippling war which only ended in 2002. Since the company was founded in 1976, just after independence, Angola’s oil output has increased twenty-fold from around 100,000 barrels per day (bpd) to around 2 million bpd, making it the second-largest oil producer in Sub-Saharan Africa. Angola regularly exports significant volumes of oil to countries in Europe, America and Asia. Chinese customs data showed Angola to be the country’s largest oil supplier in August, shipping around 30 million barrels and accounting for over 19 per cent of its total foreign oil shipments.

Sonangol accepts new challenges in deep-sea exploration Sonangol is the leading oil company in Angola, holding exclusive rights to grant and control concession block leases to a host of multinational oil- operating companies since its foundation. It took the decision to participate more directly in operations in 1992, and with this in mind established its own exploration and production arm Sonangol Pesquisa e Produção, known simply as Sonangol P&P. Sonangol P&P’s current output is just over 100,000 bpd from fields located in the shallow waters of blocks 2 and 3. The Sonangol operating 36 SONANGOL UNIVERSO

Larry Lee Photography/CORBIS

Sonangol commemorates 35 years of activities on February 25 next year. In the run-up to official anniversary celebrations, Universo looks at some of the company’s major achievements and investment plans arm has since graduated to more challenging areas of production and is now also taking part in deepwater Block 34 operations, which will have an estimated output of 200,000 bpd when it comes on stream. Angola’s future oil supplies are increasingly found in its deeper waters and Sonangol P&P, with its Block 34 experience, will be well-placed to take on a larger role in their exploitation.

Downstream: $17 billion investment in two bumper projects Two of Sonangol’s major investments currently underway are the Angola Liquefied Natural Gas (ALNG) project and the Lobito oil refinery. (see box on page 38) Sonangol chairman Manuel Vicente (right) welcomes President José Eduardo dos Santos (left) to new company HQ

Angola LNG ALNG is a Sonangol partnership with Chevron and three other international oil companies. The aim is to make more profitable use of Angolan natural gas, currently flared and a source of pollution, by liquefying and exporting it. Located at Soyo in Zaire Province, within easy reach of Angola’s main oil fields, construction of the $9 billion LNG plant is scheduled for completion in 2012. Once up and running, ALNG will supply the gas under a 20-year contract to a regasification plant on the Mississippi River in the southern United States. In order to operate the new plant, more than a hundred Angolan technicians are now undergoing training in Canada and Indonesia.

Lobito oil refinery Sonangol’s second major ongoing investment is the $8 billion Lobito oil refinery. The project is part of Angola’s strategy for reducing dependence on

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SONANGOL:

Hello to the new

-year milestone

of success beckons

Larry Lee Photography/CORBIS

Lobito oil refinery Sonangol’s second major ongoing investment is the $8 billion Lobito oil refinery. The project is part of Angola’s strategy for reducing dependence on

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Timeline 1976 Sonangol UEE established.

1989 Sonangol starts producing its

2010 Sonangol P&P as operator

Angola oil production 100,000 bpd.

own lubricant brand, Ngol. Ngol is manufactured at Sonangol Distribuidora’s plant at Mulemba, Luanda. The high-tech factory has ISO 9000 environmental certification. Ngol is now available for use in a full range of engines from high performance cars to trucks, tractors and the marine market sector.

produces 100,000 bpd equivalent to Angola’s total output in 1976. Angola is the second largest oil producer in Sub Saharan Africa with estimated reserves of 12.4 billion barrels. Sonangol has 9,000 employees worldwide.

imported refined products such as unleaded petrol, diesel, jet fuel and LPG. Lobito will relieve pressure on the only existing refinery at Luanda, which is unable to meet domestic demand for refined products. Angola currently imports 70 per cent of its fuel and other oil derivatives. The new refinery will initially produce 150,000 barrels a day of refined products, eventually rising to 200,000 barrels a day. Located 8 km from the city of Lobito, the refinery will be well-placed to serve central and southern Angola, given it will be connected to the Benguela railway, which crosses the densely populated plateau region around Huambo, Angola’s second city. The first phase of refining is scheduled to start up in 2011 and the final phase completed in 2013.

1991 Sonangol awarded first deep-sea oil concession: Block 16. Sonangol’s acquisition of this deep-sea concession signalled the company’s intent in being more directly involved in Angola’s new exploration and production frontiers, where most future output is expected.

1983 First Sonangol international subsidiary opens in London. The idea behind creating Sonangol Limited based in London was to have a physical presence in the international oil market, advertise the Sonangol group and promote the marketing of Angolan crude oil to end users without the expense of using intermediaries.

Initial capacity: 5.2 million tons of LNG a year Estimated cost: $9 billion Ownership: Sonangol 22.8%, Chevron 36.4%, Total 13.6%, BP 13.6% and Eni 13.6%

Natural gas supply sources: offshore blocks 0, 1, 2, 14, 15, 17 and 18.

New service stations significantly cut fuel queues

1999 Sonangol UEE becomes 1992 Sonangol P&P subsidiary set up as an oil-operating company. Sonangol’s exploration and production arm was created in order to participate directly in oil exploration and production and thus provide more local job opportunities.

Sonangol E.P. Sonangol changed its statutes to become a public company or ‘Empresa Publica’. The move enabled Sonangol to operate more like a private company. The company was previously administered as a directly-state controlled company or ‘Unidade Empresarial Estatal’.

Main market: United States

2001 Angola oil production reaches 1 million bpd. Angola’s profile as a major producer is enhanced as it passes the million barrel per day mark.

2003 Sonangol P&P begins opera-

Pictures: Sonangol

tions in offshore Block 3. Sonangol P&P’s first direct experiences in drilling operations start in shallow waters.

2008 Angola oil output reaches 2 million bpd. New Luanda Sonangol Holdings HQ officially opened. 38 SONANGOL UNIVERSO

International oil companies in Angola Sonangol P & P Alrosa Somoil Total BP Esso Chevron Tullow Vaalco Pluspetrol Maersk Oil Eni Petrobras Cobalt

Sonangol offices abroad Houston, USA London, England Singapore

Dewitt Jones/CORBIS

ALNG – Key facts

Sonangol retail revival Away from the dusty, relatively remote giant construction sites of Lobito and Soyo, Sonangol’s other investment plans are already bearing fruit for all to see in Angola’s streets and towns. Sonangol Distribuidora, the company’s retail arm, has a fast-growing network of modern, eye-catching petrol service stations. In 2004, Sonangol Distribuidora embarked upon a five-year plan to build 400 service stations throughout Angola with initial investment of $131 million. Thanks to the company’s efforts, queues for fuel at the country’s pumps have been cut dramatically over the last couple of years. Conscious of Sonangol’s dependence on the often sharply fluctuating price of oil, the company has adopted a policy of diversifying activities away from its core business. Sonangol’s annual performance results will be presented on February 25 during the company’s thirty-fifth anniversary celebrations. Universo will be there to describe the events on the most important date on Sonangol’s calendar. DECEMBER 2010 39

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Timeline 1976 Sonangol UEE established.

1989 Sonangol starts producing its

2010 Sonangol P&P as operator

Angola oil production 100,000 bpd.

Initial capacity: 5.2 million tons of LNG a year Estimated cost: $9 billion Ownership: Sonangol 22.8%, Chevron 36.4%, Total 13.6%, BP 13.6% and Eni 13.6%

Natural gas supply sources: offshore blocks 0, 1, 2, 14, 15, 17 and 18.

New service stations significantly cut fuel queues

Main market: United States

2001 Angola oil production reaches 1 million bpd. Angola’s profile as a major producer is enhanced as it passes the million barrel per day mark.

2003 Sonangol P&P begins opera-

Pictures: Sonangol

tions in offshore Block 3. Sonangol P&P’s first direct experiences in drilling operations start in shallow waters.

2008 Angola oil output reaches 2 million bpd. New Luanda Sonangol Holdings HQ officially opened. 38 SONANGOL UNIVERSO

International oil companies in Angola Sonangol P & P Alrosa Somoil Total BP Esso Chevron Tullow Vaalco Pluspetrol Maersk Oil Eni Petrobras Cobalt

Sonangol offices abroad Houston, USA London, England Singapore

Dewitt Jones/CORBIS

ALNG – Key facts

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ROLL OUT

THE BARRELS Photolibrary

Tripling oil output over the past 15 years has placed Angola neck-and-neck with Nigeria as Africa’s largest producer. Universo spoke to Ruben Costa, Sonangol’s director of production, about developments and challenges ahead ➔

40 SONANGOL UNIVERSO

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ROLL OUT

THE BARRELS Photolibrary

40 SONANGOL UNIVERSO

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“

NEWS

Cabinda. The development costs are higher in deeper water – and the challenge becomes economical as well as technological.”

The Gulf of Mexico incident has affected everybody... Now we do all our safety checks twice over – just to be totally sure

Significant boost in production If the pre-salt exploration is successful, as Costa believes it will be, Angola can expect a significant production boost. Until then, Block 15, operated by Esso Angola (ExxonMobil), remains the country’s largest production operation and is set to grow further when Kizomba Satellites begin. With Block 17, run by Total, the next in line and Pazflor due to come on stream in 2011 and Clov in 2012, the two million bpd target will be easily achieved. BP’s Block 31 in ultra-deep water is another key development which is due to start producing during 2011, with Eni’s Block 15/06 likely to come on stream late 2012, early 2013.

”

ngola was producing just over half a million barrels of oil per day (bpd) in 1995, but thanks to several large-scale, deepwater projects, output is now up to around 1.8 million bpd, reaching levels close to those of Nigeria, Africa’s largest crude producer. Sonangol’s plan is to reach a steady two million bpd, according to Ruben Costa, the company’s Director of Production, although he emphasised that there was no race to exceed that amount. “With all our developments we never like to jeopardise the ultimate recovery,” he cautioned. “This means all development is carefully studied to identify the best strategy because we think our responsibility is not to maximise production but to optimise it. Sometimes we have complaints from the operators and, of course, we take into account economic considerations, but our drive is always to optimise production.”

Pioneering deepwater exploration

42 SONANGOL UNIVERSO

Bloomberg via Getty Images

As Angola moves into deeper and deeper water, it is impossible not to make comparisons with the Gulf of Mexico and ask the obvious “what if” questions for Angola. “Without a doubt the Gulf of Mexico incident has affected everybody in the industry,” said Costa. “It doesn’t mean that we didn’t take safety seriously before, but this was a real signal to think again and be even more careful with our operations. “Now all of Sonangol’s equipment and procedures are doublechecked, that is we do all our safety checks twice over – just to be totally sure.” Angola has so far escaped any major incidents and Costa said the plan was to keep it that way. “We’re not saying we’ve not had problems, but nothing like the magnitude of what happened in the Gulf of Mexico.

Peace a factor in industry success

Joel Sartore

New and improved technology has been a key factor in helping Sonangol and Angola to increase production so rapidly, said Costa. “Some wells and areas that were inaccessible ten to 15 years ago are now available because of new technology. Some of it is being trialled here in Angola for the very first time, such as the riser towers and subsea separators in Block 17. We are pioneering deepwater exploration and drilling,” he said. “Sonangol is not a conservative company. If we have a challenge, we like to beat it, and all the time we are drilling deeper and deeper, at both higher temperatures and pressures.” The next big challenge for Sonangol will be the exploration of Angola’s pre-salt fields. Costa is confident that with geology very similar to Brazil, where there have been significant pre-salt discoveries, Angola will also find success in the deeper layer. Discussions are already underway, he said, for pre-salt exploration in Blocks 23, 24, 26, 39, 40 and 41, and he hoped the companies involved would be named by the end of 2010. It was unlikely, however, that the pre-salt blocks would go up for auction because of the geological complexity of the rock formation. “Pre-salt is very capital intensive, very risky, and there are some big technical challenges. We use companies that have enough financial and technological capacity. If there are problems at the outset, these could jeopardise future pre-salt activity. “We estimate that it will cost $100 million to drill one pre-salt well. For that amount, you could drill six or seven ordinary wells in

“Over the last two or three years, we’ve had three or four small incidents, some in Blocks 0 and 14 in Cabinda. The biggest one was in Block 17 back in February 2008, but the oil that shows up on the beach in Cabinda from time to time could just as easily come from elsewhere, such as Congo, as was the case with the last report of oil which washed up there,” Costa explained. Angola has now been at peace for nearly nine years, and under

Oil sheen is seen with vessels assisting near the source of the BP Deepwater Horizon oil spill in the Gulf of Mexico

one president for 31 years and that stability has certainly been a factor in the country’s oil industry successes. “In terms of oil business, people always recognise Angola as a very stable country,” said Costa, “and also because we are known for honouring our contracts. “The environment for investment in Angola is always very well appreciated; we respect our promises, and we don’t change the rules in the middle of things.” He said the next step for Angola was converting the successes of its oil industry into sustainable development for the people. “For a long time the oil business was like an island in Angola – companies would bring people in just to take them offshore to the fields and that was it,” he said. “But the situation today is completely different, and at Sonangol we feel that we are responsible to support the government in the effort for construction and local training.” Giving the example of the Malongo compound in Cabinda, run by the Cabinda Gulf Oil Company, Chevron’s Angolan subsidiary, Costa said it was time there was more connection between oil workers and their local community. “A lot of services used to have to be done abroad, but now we can do things for ourselves and we should do these things. Everyone has to be involved; it’s about investing today to see a return in the future.”

DECEMBER 2010 43

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“

NEWS

Cabinda. The development costs are higher in deeper water – and the challenge becomes economical as well as technological.”

The Gulf of Mexico incident has affected everybody... Now we do all our safety checks twice over – just to be totally sure

”

Pioneering deepwater exploration

42 SONANGOL UNIVERSO

Bloomberg via Getty Images

Peace a factor in industry success

Joel Sartore

Oil sheen is seen with vessels assisting near the source of the BP Deepwater Horizon oil spill in the Gulf of Mexico

DECEMBER 2010 43

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Ruben Monteiro da Costa Date of birth:

February 2nd 1961

Place of birth: Sumbe, Angola

1986:

Training on Elf Aquitaine Angola in drilling

1987-1992:

Cabinda Gulf Oil Company CABGOC (Chevron) on secondment from Sonangol Petroleum Engineer (1987-1989) Production Foreman (1989-1991) Reservoir Engineer (1992)

1992-2010:

Sonangol Reservoir Engineer (1992-2000) Head of Production Department (2000-2002) Head of Facilities Department (2003-2006) Production Director (2006-2010)

44 SONANGOL UNIVERSO

Kamene M Traรงa

Petroleum Engineer graduate at Universidade Agostinho Neto in Luanda

DECEMBER 2010 45

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Ruben Monteiro da Costa Date of birth:

February 2nd 1961

Place of birth: Sumbe, Angola

1986:

Training on Elf Aquitaine Angola in drilling

1987-1992:

Cabinda Gulf Oil Company CABGOC (Chevron) on secondment from Sonangol Petroleum Engineer (1987-1989) Production Foreman (1989-1991) Reservoir Engineer (1992)

1992-2010:

Sonangol Reservoir Engineer (1992-2000) Head of Production Department (2000-2002) Head of Facilities Department (2003-2006) Production Director (2006-2010)

44 SONANGOL UNIVERSO

Kamene M Traรงa

Petroleum Engineer graduate at Universidade Agostinho Neto in Luanda

DECEMBER 2010 45

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HAPPY BIRTHDAY

As Sonangol’s Cape Verde enterprise celebrated its tenth anniversary in late October, Universo took a look at the company’s activities in the archipelago’s promising economy ➔

46 SONANGOL UNIVERSO

Michele Falzone/JAI/Corbis

NEWS

DECEMBER 2010 47

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HAPPY BIRTHDAY

As Sonangol’s Cape Verde enterprise celebrated its tenth anniversary in late October, Universo took a look at the company’s activities in the archipelago’s promising economy ➔

46 SONANGOL UNIVERSO

Michele Falzone/JAI/Corbis

NEWS

DECEMBER 2010 47

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Key facts: Cape Verde

he Cape Verde Islands, on the northwest Atlantic edge of Africa, have witnessed extraordinary economic expansion, with GDP growth peaking at nearly 12 per cent in recent years. The country’s economy and location are key to Sonangol’s strategy of internationalising its businesses in West Africa. With this in mind, Sonangol Cabo Verde S.A. was established ten years ago, seeking to serve this dynamic market. The work of Sonangol’s subsidiary is aided by the fact that Cape Verde, like Angola, shares Portuguese as its official language. While the Angolan oil giant’s core business is represented by its hefty minority stake in local oil company Empresa Nacional de Combustíveis (Enacol), Sonangol has diversified into other areas of the islands’ economy, such as banking, tourism and telecoms.

• • • •

• • •

•

Source: BBC

Main businesses

Sonangol’s local fuel, banking, tourism and telecoms interests are well placed to benefit, and benefit from, Cape Verde’s major areas of growth 48 SONANGOL UNIVERSO

Stake from cruise ships but also by air. It has opened two new international airports in the last three years. There has also been extensive hotel-resort building, including construction of West Africa’s largest hotel with 1,000 beds. More resorts are in the pipeline. An estimated 70 per cent of Cape Verde’s economy is based on services. Banking has particular importance given that the country’s large emigrant population – said to be greater in number than the indigenous inhabitants – supports the economy through remittances. Telecommunications play a crucial role in facilitating these services. Sonangol’s locally-sourced fuel, banking, tourism and telecoms interests are well chosen to benefit, and benefit from, Cape Verde’s major areas of growth. Sonangol’s subsidiary has earmarked a $30 million investment in several areas of the local economy for the period 2011-2013. The investment will help create the conditions for the company’s self-sustainability and contribute to Cape Verde’s economic and social well-being, said João da Silva Neto, chairman of Sonangol Cape Verde’s board.

Sector

Enacol*

38.37%

Oil Products

Valor Hotéis e Turismo

20.00%

Tourism

BAI CV*

19.00%

Banking

CVTelecom

5.05%

Telecommunications

Mindelo, São Vicente, Cape Verde Islands

Sonangol’s Cape Verde Company

*Empresa Nacional de Combustíveis **Banco Africano de Investimentos Cabo Verde

Enacol – Sonangol’s fuel partner Enacol is involved in importing, storing, distributing and selling liquid fuels, liquefied petroleum gas and lubricants. It operates in retail, wholesale, direct client sales, energy and aviation segments.

Robert Harding/Robert Harding World Imagery/Corbis

Archipelago Cape Verde consists of 15 mostly mountainous islands located 570km from Senegal off the West African coast. The islands are semi-desert and although largely unsuitable for agriculture, offer great tourism opportunities. Cape Verde is well placed, with harbours to serve transatlantic and African coastal sea routes. The government is keen to exploit tourism possibilities not only

Population: 506,000 (UN, 2009) Capital: Praia Area: 4,033 sq km (1,557 sq miles) Major languages: Portuguese, Crioulo (a mixture of archaic Portuguese and African words) Life expectancy: 68 years (men), 74 years (women) (UN) Monetary unit: 1 Cape Verdean escudo = 100 centavos Main exports: shoes, clothes, fish, bananas, hides, pozzolana (volcanic rock, used to make cement) Gross national income per capita: $3,130 (World Bank, 2008)

The company’s Cape Verde business operates under the name of Sonangol Cabo Verde – Sociedade de Investimento S.A. It has been present in the country since October 26, 2000, and is a subsidiary of Sonangol E.P. and SonAir. The shareholders are Sonangol SGPS with 99 per cent and Sonair Serviço Aéreo SARL with 1 per cent. SonAir is the air transportation arm of Sonangol.

DECEMBER 2010 49

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Key facts: Cape Verde

• • • •

• • •

•

Source: BBC

Main businesses

Sonangol’s local fuel, banking, tourism and telecoms interests are well placed to benefit, and benefit from, Cape Verde’s major areas of growth 48 SONANGOL UNIVERSO

Sector

Enacol*

38.37%

Oil Products

Valor Hotéis e Turismo

20.00%

Tourism

BAI CV*

19.00%

Banking

CVTelecom

5.05%

Telecommunications

Mindelo, São Vicente, Cape Verde Islands

Sonangol’s Cape Verde Company

*Empresa Nacional de Combustíveis **Banco Africano de Investimentos Cabo Verde

Robert Harding/Robert Harding World Imagery/Corbis

DECEMBER 2010 49

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INSIDE ANGOLA

PMP Global

The coastal road from Luanda to Lobito offers oases of serenity and understated beauty. The River Keve slowly meandering across its flood plain south of Porto Amboim is a priceless example.

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INSIDE ANGOLA

PMP Global

The coastal road from Luanda to Lobito offers oases of serenity and understated beauty. The River Keve slowly meandering across its flood plain south of Porto Amboim is a priceless example.

50 SONANGOL UNIVERSO

DECEMBER 2010 51

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SONANGOL UNIVERSO

Universo DECEMBER 2010

Angola delights Shanghai Expo Sonangol celebrates accelerating growth Rail revival reunites Angola

Art attack

Luanda Triennial enchants

ISSUE 28 â&#x20AC;&#x201C; DECEMBER 2010

INSIDE: oil and gas news