SO UUnniivvANGOeeLA | OIL rr| BUSINssESS | oCoULTURE ISSUE 14 SUMMER 2007 N A N G O L U N IV E R S O IS S U E 1 4 – S U M M E R 2 ON TIME: Sonangol Namibe joins the family ■ ON SITE: Greater Plutonio FPSO arrives 0 0 7 Block 31 offshore Angola ■ IN A TIN: Pictures by Kandengues Unidos Luanda Orphans ISSUE 14 SUMMER 2007 S INSIDE SONANGOL INSIDE ANGOLA Something Big T N 30 There is an awesome 30. Troubled Eden grandeur about almost E For a region of such distracting everything to do with beauty and easy-going lifestyle, the oil industry: the T now, as it rebuilds its future ambitious concepts, the N Uíge has seen more than its fair huge structures, the share of disruptive influences amazing technological achievements – and the O almost unimaginable 36. Paradise in sums invested to extract Waiting the sought after gas C and liquid. 36 With a new international airport In this issue we salute two momentous and world-class hotels under events. The first is the arrival in Angolan construction, Angola’s tourism waters of the world’s biggest FPSO, exclusively minister sees a time when the photographed for Universosoon after it 8 14 country can be less dependent arrived on Block 18. on oil The second is the delivery of the fifth Suezmax crude carrier to join the Sonangol 8. Our Growing Family 42. Child’s Eye View fleet, the Sonangol Namibe, taking its total As the m/t Sonangol Namibedeparts Korea’s The camera obscura was the tonnage to just under 800,000 deadweight Okpo shipyard to begin her travels across the first mechanical means of repro- tonnes. As our special report from Korea Sonangol oceans of the world, so begins another chapter ducing a picture of an actual describes, her crew includes an elite cadre of Rua 1°Congresso do MPLA, for Sonangol Shipping scene. Pictures taken by youthful Angolan officers and cadets, products N.º 8-16 Luanda’s orphans demonstrate of the Sonangol maritime scholarship scheme. Caixa Postal 1316,Luanda República de Angola how potent this simple tech- Elsewhere, we explore the highlands and 14. Win-Win Opportunity Tel: +244 2 391 182 nique still is. forests of Uíge to reveal a province of much Fax:+244 2 391 782 beauty and tranquillity, and imparting some Angolanisation and local content are buzz Telex:2089 SONANG AN hopeful possibilities in contrast to the starker [email protected] words long familiar to Angola’s oil sector – and 46. Fly Like a Bird news that more usually comes from this region. another successful Sonangol-led initiative shows Sonan1g1o77l UEnScAlav (eS Poanrkuwsaay) one way of making it happen Since Icarus, it has been man’s The future opportunities of tourism to the Second Floor dream to take wings, and skim- country as a whole are discussed in an exclusive Houston,TX 77077 ming over the Atlantic surf of interview with tourism minister Eduardo USA 18. On Site – on Time 46 the Ilha a growing number of Chingunji, together with a profile of the cur- Tel:+1 281 920 7600 18 Fax:+1 281 920 7666 On the eve of first oil from the Greater Plutonio young Luandans experience rent state of the industry. [email protected] Field Universomeets Mary Shafer-Malicki, just that The swooping kitesurfers of the Ilha are a newly- appointed leader of the BP Angola reminder of summer days now on the wane in Sonangol UK Merevale House Business Unit 50. Out to Lunch Angola, and we are afforded some fascinating Brompton Place glimpses of life in Luanda through the eyes of London SW3 1QE Hardly a week goes by without children using old tin cans for cameras. United Kingdom 22. Small is Beautiful Tel:+44 207 838 4600 a new restaurant opening its To round off the menu, we go on a gastro- Fax:+44 207 589 9454 Angola’s exploration and production boom is doors in Luanda, adding to the nomic tour of Luanda’s favourite restaurants – Telex:893212 SONANG set to continue as the oil majors are joined by a eclectic choice of eating places a big treat, we hope. Sonangol Asia growing band of local and international compa- available in the capital 3 Temasek Avenue nies defined by their entrepreneurial spirit --The Editor 31-04 Centennial Tower 50 Singapore 039190 Tel::+65 64 16 3583 24. West Africa Hub Fax:+65 64 16 3582 Sonangol Department for Communication & Image –– Director:João Rosa Santos;Corporate Communications Assistant:Cristina de Novaes As the principal support for its west and south- This magazine is produced for Sonangol by Impact MediaGlobal Ltd,53 Chandos Place,London WC2N 4HS,UK,Tel:+44 20 7812 6400~ Fax:+44 20 7812 6413 ern African operations, Vetco Gray’s Luanda Publisher:Sheila O’Callaghan;Group President:John Charles Gasser;Project Consultant:Nathalie MacCarthy base is centrally located to deliver rapid Editor:Peter Moeller;Sub-editor:Ron Gribble; Art Director:Lisa Pampillonia;Advertising Design:Bernd Wojtczack;Circulation Manager:Matthew Alexander Contributors:Nina Asz,Karen Iley,Bruce McMichael Cover Photo:m/t Sonangol Namibe(PMP Global) response to its sub-Saharan clients 24 All rights reserved.No part of this work may be reproduced or transmitted in any form or by any means,electronic or mechanical without prior permission in writing from the publishers. [email protected] 4SONANGOLUNIVERSO N E W S I N B R I E F Chevron has notched up another important discovery Terminal expertise New Partner in the deep waters offshore Royal Boskalis Westminsterand the Jan Eniis to join the $4 billion project to Angola in Block 14. The de Nul Group have been awarded the con- build an LNG plant at Soyo in northern Lucapa-1 well, spudded in tract to develop the landing site for the Soyo Angola after buying a 13.6 per cent late 2006 in water depths of LNG export terminal. The $400m contract stake in a company in charge of the 1,201m, is the tenth explo- involves dredging an access channel and cre- project, the Angola LNG Limited consor- ration discovery made in the First meeting ating an artificial island to allow the LNG tium (ALNG). Partners in the project block since 1997. Angola’s Senior oil carriers to berth. About 5 million cubic metres include Sonangol, Chevron, Total and officials have for the first of dredged material will be used to create BP. Earlier this year, super- Sonangolis developing plans time attended a quarterly 140 hectares of new land on which the major ExxonMobil to put some of its non-oil sector meeting of the Organisation of terminal will be built. A contract for transferred its 13.6 interests up for sale, with local Petroleum Exporting Countries (Opec) advance engineering and procure- per cent stake in the companies being the preferred since being admitted to the organisation in January. The assembly took place on March 12. ment has also been awarded to project to buyers. According to chairman Angola is the newest member of the influential group, and is the organisation’s first new member engineering company Sonangol, Manuel Vicente, the develop- since 1975, but is not yet subjected to monthly Opec production quotas. Bechtel. The project is whose share ment of the Angolan business Opec meetings generally take place in Austria at the Vienna headquarters of the organisation scheduled for completion rose to 36.4 sector will enable the company that represents the interests of 12 leading oil production and exporting countries, which include by the end of 2008. per cent. to sell off peripheral businesses Iran, Libya, Nigeria, Qatar, Saudi Arabia and Venezuela. and allow the group to focus on The next Opec ministerial conference has been scheduled for September, when the decision will its core exploration and produc- be made on which of Angola’s three crudes – Cabinda, Palancaand Girassol– will be used in the tion activities. cartel’s oil price index. Opec’s benchmark index is set according to production and export levels of member countries. Spoilt for Choice Saipemhas scooped $1 billion Angola’s membership of Opec follows a significant growth in the country’s political influence in Sonangolsponsored 2nd Regional Deepwater Offshore West Africa Conference and worth of contracts for offshore West Africa after agreeing ties with São Tomé and Príncipe and heading the revival of the region- Exhibition, being held for the first time in Luanda from October 3-6, has an embarrassment of and onshore services around the al co-operation body, the Gulf of Guinea Commission (GGC). Along with the two riches in attracting no less than 175 abstracts. world including Angola. Saipem Portuguese-speaking countries, the GGC is made up of Gabon, Nigeria, Equatorial Guinea, “We had planned to present no more than 60 during the three-day event,” says Gerard Kreeft, will begin installing a pipeline Cameroon and the Republic of Congo. managing director of the organisers, Energywise. “But rather than reject so many valuable con- system in Chevron’s offshore tributions, we have decided to re-jig the programme to run three parallel sessions instead of the Block 0 Mafumeira oilfield at the original two. This means that the technical committee will now be able to select 90 – 100 abstracts,” he adds. end of 2007. toLhypieTne odght uaainglt ehBa a lDocsáoc flksilato 1 woo7fie, l f$dtieh4 fle dibr ,sfi tlidle iooeldivnl e.ifslr-om SiLtsho AiApmcnpageinorligl capan(An rp BeBrSeus)s reeisen anecuexcp boeayfn dhiinrigng w$C3iSth hbooiinlnluiaotan nag goeoriellx ’ersem inftieenngetor yto iaavetti roL onambs iwbtoiit.ti hoC uShsii nnpoelapsene scc othoma vipneav neensietd sie nhd aave tseitvcTMaeihptnoeeat-r t.oeue fn t-ihetnhax etpnh-e ae5cr 0ttee xTpdhae linabr utictomeionnbnate Croru foon ntfnh fhieenir ggsehp ni-nacqc euce oCa hnleiatjnuyst n praecaltr.pieoeanrds yw rbeitcehee itnvh eebd o cioosk naefldesor ep rnreocfmele iacsttien Ldgu aiann pdthoaet’se knneteieawnllny essusc tcoe spsafur-l ILLUSTRATIONS: GREG GRIGO expected to pump up to new staff. John Gallagher, played a leading role in the recent oil-driven reconstruc- RIO U 240,000bpd and is the first in director of offshore technolo- tion boom, with Angola recognised as one of China’s gy and business development, most important suppliers of crude oil. Planning for the Filters tipped Going to Market the world to produce such vis- ABS Europe, says: “We are Lobito refinery will now focus on producing a range of Weatherford Angola, the Sonangolmay join the cous, acid oil at depths of working closely with the products that will be marketed interna- Angolan subsidiary of US engineer- Johannesburg and New between 1,200 and 1,500m. Angolan government to iden- tionally, rather than focusing ing company Weatherford York stock exchanges by Mustang Engineering, a sub- tify and train suitable local solely on supplying International, is to start exporting 2010, according to chair- sidiary of international energy candidates as part of our pro- China. sand filters for oil well drilling oper- man Manuel Vicente. services company John Wood gramme to assist in ations this year when the first Joining the stock markets Group, is to design the compli- developing a core of maritime factory on the African continent will allow Sonangol to expertise within the country.” begins production. The plant repre- access international capi- ant piled tower (CPT) for The classification society sents an investment of around $20 tal markets, with Vicente Chevron’s Tombua–Landana might set up a second office million and will manufacture filters pointing out that development project, located in the northern city of Soyo to and drilling countersinks that will Sonangol has never been within the eastern portion of manage its work on the pro- be used in the energy, civil engi- in better financial health as it is Block 14 in approximately 366m posed liquefied natural gas neering, architecture and mining today, and thus well placed to of water. (LNG) terminal. sectors. consider such a move. 6SONANGOLUNIVERSO SUMMER2007 7 our N E W B U I L D I N G our G Growing rowing family family As the m/t Sonangol Namibe departs Korea’s Okpo shipyard to start her travels across the oceans of the world, so begins another chapter for Sonangol Shipping A At precisely 18.10 on the evening of March 22, as her last mooring line slips into the waters of No 2 Quay at the sprawling Daewoo Shipbuilding and Marine Engineering (DSME) shipyard south of Pusan, Korea, the motor tankerSonangol Namibe remains motionless. Like a person just awakened from their slum- bers to reflect on their plans for the future, so perhaps there was a moment of contemplation on a life of service – maybe 30 years – about to begin. Three years after she was conceived with the sign- ing of the contract to build Hull 5277 in June 2004, Sonangol’s newest Suezmax crude carrier was on the point of leaving her birthplace, never to return. Now, with the last inches of welding complete, the myriad of classification and survey forms approved and signed, fuel tanks topped-up and every surface from stem to stern, gleaming with new paint, the Sonangol Namibehad come alive and was almost on her way – first to Singapore and then to Mina Al Fahal, Oman to receive her first cargo destined for Meizhou, China. The previous day she had been officially named by Lucinda Guimarães, commercial operations director of Sonangol EP, in the presence of chair- man and Chief Executive Manuel Vicente, Angola’s Minister of Petroleum Desidéiro Costa and Mr S. T. Nam, DSME president and chief executive, and a host of well wishers from the company and others who will be involved with her future. GLOBAL SUMMER2007 9 MP P PROUD MOMENT: Mrs Lucinda Guimarães, Commercial Operations Director, Sonangol EP names ONDUTY: Second Engineer Francisco Miranda with Manuel Vicente, m/t Sonangol Namibe, applauded by DSME President, Mr S.T. Nam. Chairman Sonangol EP and Angola’s Minister of Petroleum, H.E. Desidério SHINING EXAMPLE: Every surface glistens as Sonangol Namibe is ready to take her leave of Okpo Costa, who takes a keen interest in Sonangol’s maritime scholarship scheme Master and Commander PMP GLO DMSE sea Einve 1r9 s7in0c, eC ahpet faiirnst D weeenpta kto BAL Nigam has always wanted to work in tankers, though his early experience was gained in containers and general cargo carriers. “I relish the challenge,” he says. “Tankers are just so much more demanding.” Having worked with Wallem Ship Management since 1975, he obtained his Master’s ticket in 1981 and was promoted master in 1984. Captain Nigam first came to Sonangol Shipping in 2005, since when he has skippered both Girassoland Kassanje. Prior to that, he had worked mainly on ultra-large crude carriers (ULCCs) and was the take-over master of both the “jumbo-ised” Jahre As she performed the ceremony in the small margin, but one which can represent sig- tings, in various specialist areas spread across ceremony, Baptista Sumbe Sonangol USA “As long as she spring sunshine, Ms Guimarães said: “As long nificant savings in the faster delivery of a full the 400-hectare shipyard. These are then executive chairman said: “It would be difficult sails, I wish this as she sails, I wish this remarkable ship cargo of crude and with greater fuel efficiency. brought together in the huge dry docks for to measure the excellent relationship between favourable weather and smooth voyages. May “Namibealso embodies other improve- welding together. Sonangol and DSME, and I offer my warm remarkable ship God bless her and all who sail in her.” While ments in construction which will increase her For Namibe, stage one, involving the cut- thanks to its management and staff for this ship’s horns hooted around the yard, the name life to 30 years, as against 20 years for her sis- ting of the steel plates to laying the keel, took valuable support.” favourable Sonangol Namibewas revealed on her bows. ters in the fleet,” says Mr Andersson. “These just over four months – from June to October His words were echoed by DSME president She is the fifth Suezmax tanker to join the mainly relate to upgraded structural features, 2006. Ten weeks later, on January 20, the large- Mr S. T. Nam, who said: “Our relationship has weather and Sonangol Shipping fleet, bringing its total ton- improved materials and more detailed weld- ly completed hull was floated for final fitting lasted for ten years. We are very impressed by smooth voyages. nage to almost 800,000 deadweight tonnes ing. For example, Namibe’sclosed double out alongside a quay. the management of Sonangol and with the (dwt). All have been built to the same bottom extends into the aft pump room, This tight schedule is crucial to avoid quality of their staff and supervisors who have May God bless 159,000dwt design, with minor modifications which adds safety and strength – and there is potential bottlenecks in the dry dock and all worked with us at Okpo.” based on operating experience and to meet built-in permanent means of access to every effort is focused on floating out at the earliest These sentiments were endorsed by petro- her and all who the requirements for greater efficiency. part of the vessel to allow for easier close-up opportunity to enable on-time delivery dates leum minister Desidério Costa who said: Viking, as well as the Sea The entire newbuilding was overseen at the inspections.” to be achieved. “Angola’s oil industry is growing fast. We hope sail in her.” Giant, the world’s largest DSME yard by a Sonangol team under the With its registration in Nassau, Bahamas, Two months later, just eight months after that next year production will pass 2 million designed-and-built vessel. direction of Sonangol Shipping fleet manager Namibeembodies all the latest safety require- the first steel was cut, Namibewas delivered to bpd. Other important milestones will be the “I am especially looking Lucinda Guimarães, Catarino Pereira. ments and is equipped with state-of-the-art her new owners. Angola LNG project and the new refinery at forward to commanding Commercial Operations “Namibeis very similar to Kassanje, deliv- navigation and communications equipment. With such an intricate, fast-moving opera- Lobito. These developments are possible Namibe,” he says. “She is a Director, Sonangol EP ered in June 2005,” says project manager Jan State-of-the-art applies equally to the hi- tion, heavy responsibility rests on the through the vision of our leadership, our fine new vessel and has ben- Andersson who supervised the building opera- tech DSME shipyard, now one of the world shoulders of Mr Andersson and his team from humility, hard work – and the contribution our efited from the experience tion. “The only changes are to the design of leaders in shipbuilding and capable of turning Seaquest Marine Project Management, spe- partners.” gained in building and oper- the hull, mainly to get better performance for out more than 50 large commercial vessels, cialists in working with owners and builders to Mr Sumbe see these as early days. In ating her Sonangol sisters. the same 22,920bhp engine power.” offshore structures and military craft a year. ensure that ships are delivered to specification February 2005 he said: “We are growing. I I’m also looking forward to This means that her single 55-tonne screw Its secret is minutely planned mass pro- and in superior condition. already have a mandate to go for three more passing on my knowledge will drive her through the water at a service duction techniques that involve the The launch ofNamibealso marks a high units if the market is right, and to continue and experience to my youth- speed of 15.5 knots, as against 15.2 for the first pre-construction of gigantic ship-sections, point in the harmonious bonds enjoyed by Sonangol’s policy of becoming an integrated ful team of officers and in the series, Sonangol Girassol– an apparently complete with internal piping and other fit- Sonangol and DSME. Speaking at the naming oil company from exploration right through to cadets.” 10SONANGOLUNIVERSO SUMMER2007 11 DSME PMP GLO BAL slowly building a cadre of trained deck officers “Our relationship has and engineers, is the start of a new maritime tradition for Angola – served by professionals lasted for ten years, and who will bring a host of new skills and jobs to the country. we are very impressed by “Remember, we can always build ships,” concluded Mr Sumbe at the naming ceremo- the management of ny. “But please join me in saluting these young Sonangol, and with the men. They are our truly precious resource – examples of the greatest contribution that quality of their staff and Sonangol can provide for our nation in edu- cating its young people and providing them supervisors who have with a good job opportunity. “Sonangol will continue to train more and worked with us at Okpo.” more candidates. Shipping is part of the core business of the company. And with the advent Mr S T Nam, President, of Angola LNG and the Lobito Refinery, more Daewoo Shipbuilding & ships will be needed, and surely the shipping culture will grow and be consolidated here in Marine Engineering Angola.” ❖ “Remember, we m/t Sonangol Namibe distribution – as well as offering training can always build opportunities in all the aspects of vessel Crude oil tanker, built by the Daewoo Shipbuilding and Marine Engineering Co Ltd management.” Delivered: March 22, 2007 ships, but please At Okpo, he reaffirmed these points, first scholarship. His wife is a schoolteacher in Luanda. by acknowledging the success of the Stena- “There is always something new to learn at sea,” he says. join me in Length overall 274m Sonangol Pool. “It is a perfect marriage,” he “Since graduating, I have served in all the Sonangol ships.” Length between perpendiculars 264m saluting these said. “It has performed above the market aver- Breadth, moulded 48m Pereira joined Namibein good time to be involved in the final age, profiting from all opportunities that the Depth, moulded 23.7m stages of construction and classification. young men. They market can offer, from the Atlantic to the Designed draft, moulded 16m “I found the participation in the sea trials really interesting,” Pacific and Indian Oceans.” Scantling draft, moulded 17m he says. “I’m especially interested in navigation and cargo man- are our truly He went on to draw attention to the young Deadweight tonnes 158,425 agement, and on this new vessel there are a lot of new skills and Angolans who form a large part of the team Service speed 15.5 knots expertise to acquire.” precious resource” responsible for operating the Namibeunder Main engine Man-B&W Second engineer Francisco Miranda from Luanda was a 6S70MC Captain Deepak Nigam, explaining that they Ship’s complement 26 teacher of electrical drawing when he won his Sonangol scholar- were part of swelling band of graduates pro- Baptista Sumbe, ship, going on to become the first engineer to gradate in the duced by Sonangol’s ‘shipping academy.’ Executive Chairman, Classification,American Bureau of Shipping: programme. To date, the scholarship scheme has pro- Frederico Pereira and Second engineer Francisco Miranda Sonangol USA Company +A1(E), Oil Carrier ESP, SH, SHCM, RES, “Going to sea has brought a completely new life for me,” he duced some 23 graduates – 14 of them +AMS, +ACCM, ES, UWILD, VEC-L FL(30) says. “I love the travelling and I have served in all vessels except engineers and nine deck officers. At any one the Sonangol Luanda. I’m really enjoying the challenges of this time there are about 60 cadets in training at M/T Sonangol Namibe is the fifth Suezmax Shipmates new ship.” colleges in Scotland and India, and on tanker to join the Sonangol Shipping fleet, The other Angolan officers are third engineer Edmur Costa, Sonangol vessels. technically managed by Wallem Ship “The scheme is working well,” agrees Management and part of the Stena- The 27 crew who sailed in the m/t Sonangol Namibefrom second officer Alfredo Massango and fourth engineer Euler Richard Speight, assistant principal head of Sonangol Suezmax Pool. Okpo to Singapore and Mina Al Falal, Oman, on March 22 under Miguel. The cadets include engine cadet António Paim and deck ON COURSE: maritime studies at the Glasgow College of Her four Sonangol sister ships are (by age): the command of Captain Deepak Nigam included five Angolan cadets Orlando Vandik and António Pita. m/t Sonangol Namibeundergoes Nautical Studies where the students spend one Sonangol Girassol158,706dwt, Sonangol officers and three cadets from the Sonangol training scheme. The remaining officer complement is made up of chief engi- her trials in the South China Sea Luanda159,178dwt, Sonangol Kizomba year of their two-year course. “We are now Second officer Frederico Pereira, 27, who was born in Uíge neer Paramjit Singh, chief officer R. Singh, electrical engineer A. 159,168dwt and Sonangol Kassanje anticipating that the first of our Angolan grad- province, started his college education studying economics along- Kumar, second engineer Rajesh Shah and third officer Hoshang VIEW FROM THE BRIDGE: 158,706dwt uates will receive his master’s certificate within side his elder brother, before winning a Sonangol sea training Wadia, all from India. Sonangol Namibeprepares to depart from the DSME yard, five years.” Total fleet 794,183dwt Okpo, South Korea So Sonangol’s shipping academy, which is 12SONANGOLUNIVERSO SUMMER2007 13 D E V E L O P M E N T w in-win Angolanisation and local content opportunity are buzz words long familiar to Angola’s oil sector – and another successful Sonangol-led M initiative shows Most oil majors operating offshore the oil industry. one way of Angola have become accustomed to pay- CAE-Apoio Empresarial is the brain- ing high prices for goods and services – but child of Sonangol’s Projecto de making it happen the old adage that paying more gets you Desenvolvimento da Participacao Nacional better quality may not be as true today as – Project for the Development of National it once was. Participation [Universo 6]. PDNP’s mission During the civil war years, exploration is to ensure that more private Angolan companies had little choice but to import businesses can become involved in the nearly everything as the private sector had country’s lucrative oil sector. It also tries to almost ground to a halt and the high-tech increase links between foreign and local demands of the industry meant that cut- firms working in the industry and provides ting corners could never be an option. management and business training to “The oil business is one of the most Angolan entrepreneurs. complex markets – deepwater oil drilling is Mr Benson is convinced that by using not an ordinary service industry,” says Lars more local enterprises rather than relying Benson, executive director of CAE-Apoio on imports, the oil companies can cut Empresarial, a Luanda-based business costs without compromising demand for centre which helps to match small and quality. “It’s true you can’t go out and buy a medium-sized Angolan companies with jumpsuit in Luanda tomorrow. But there is contracts to provide goods and services to no need to go to Korea to source it – you the oil industry. “The problem facing oper- can get it made here,” he says. ators is the high costs of doing business as “Local businesses might not have the well as the quality of goods and services smartest signs on the outside, but they can they receive in an industry where mistakes provide quality goods and services. It’s not can cost millions of dollars per minute,” that you can’t get quality in Angola, you says the senior US business expert with just may not know where to find it. That’s considerable experience of Angola. why we are here to help.” In five years of peace, the Angolan In addition to Sonangol, CAE-Apoio business environment has flourished, with Empresarial is sponsored by BP, Chevron, more local entrepreneurs trying to get onto Esso and Total, and managed by an the lucrative oil industry ladder than ever American NGO. It has a database of more before. This has enabled a better selection than 300 local companies, has carried out ONDA of goods and services to be available local- due diligence checks on a further 50 and OR ly, from the most basic to the highly more are coming onto its books every day. ONY F specialised – especially those tailored to Mr Benson believes that the potential ANTH 14SONANGOLUNIVERSO SUMMER2007 15 “The problem for Angolan companies to supply the oil Both Angolan and foreign business con- local companies to win these contracts.” Angolan companies keen to get into the indus- industry is enormous. “Some of the oil majors sultants work from CAE-Apoio Empresarial’s Entrepreneurs often complain that the try and the big players saying they want to facing operators are spending hundreds of millions of dollars small offices in the Ingombotas district of legacies of war include heavy bureaucracy and work with local suppliers. But both sides, he on operating in Angola,” he says. “We want to Luanda, helping clients to prepare for the diffi- high costs to get businesses up and running. says, should be realistic about the scope for is the high costs make sure as much of that money as possible cult jump to the oil industry. Indeed, according to World Bank data, Angola their collaboration. of doing business stays here.” The centre offers training about twice a ranks 156th out of 175 countries in terms of “All oil companies will say they want to The business centre wants to maximise the month on most business subjects including ease of doing business and it is not always work with Angolan companies, but in reality it as well as the benefit to the oil companies and the more quality management, bidding for and manag- easy to survive in this tough environment, is often difficult for them to go out and find local companies become involved in the ing contracts, marketing and financial especially for small Angolan companies strug- local suppliers,” he says. “I tell Angolan com- quality of goods industry, the more jobs will be created for management. It also provides information on gling to juggle slender resources. panies to be careful in what they wish for Angolans. This process will also help to pro- upcoming contracts in the oil industry and Despite the challenges, Mr Benson says the because having a contract with an oil compa- and services they mote a better knowledge of the oil sector helps to polish up local companies’ bids so that range, availability and quality of goods and ny can be more difficult than they imagine.” receive in an within the country, thereby creating an econo- they can compete against foreign suppliers. services provided by local companies have However, Mr Benson has no doubt that the my that is more self-sufficient and less reliant In the last few years, Angola has undergone generally increased. However, the specifics of more local companies can secure a foothold in industry where on foreign know-how. a massive economic upswing, essentially due the oil industry mean that the barriers to entry the oil industry, the better it will be for The aim is to use the oil and gas industry to increasing oil production and high crude remain high. Angola’s long-term development. mistakes can cost as a springboard to promote growth across the prices. Foreign entrepreneurs have been trying “The potential for Angolan companies to “People always talk about the curse of oil. country, which can contribute to a more sus- to get in on the action, but the government provide the quality services required is a chal- But one of the benefits of this industry is that millions of tainable type of development and also help and Sonangol are on a drive to ensure that lenge because offshore drilling is such a its supply chains are very advanced and there dollars per other areas of the economy to flourish. more Angolan companies are included in the high-tech industry. And oil companies gener- will be a technological transfer which will ben- In the past, the lack of openness on the oil industry food chain. ally only work with companies they already efit not only oil but other sectors, from minute.” part of foreign oil companies and the high “Beyond being under pressure from the know. We introduce them to new companies.” agriculture to mining,” he says. costs of doing business in the industry have government to Angolanise, most of the majors Despite the evident difficulties of working “As more companies win contracts, there made things difficult for small and medium- recognise that this is good business practice,” for the oil industry, CAE-Apoio Empresarial are going to be more jobs created for Lars Benson, sized Angolan companies. It has sometimes says Mr Benson. “We’re helping the oil indus- has already helped 22 Angolan businesses to Angolans. This is a win-win situation for the Executive Director, discouraged them from competing for entry try to find new potential producers of goods or secure contracts worth around $2 million, pro- private sector in Angola, for the oil industry as CAE-Apoio Empresarial into the market. services in Angola and our interest is to assist viding the sector with a range of products a whole and for the oil operators.” from pumps, overalls and stationery to clean- With the training offered, Angolans will be ing, technical maintenance and catering given a better chance to compete with foreign services. companies. This process will strengthen local Mr Benson describes the relationship companies and help to make sure that more of Maintaining Growth between the two sides as “push and pull”, with the country’s wealth stays in Angola. ❖ An enterprising Angolan company that provides maintenance services for homes, including Building a Future those owned or managed by oil companies, has already succeeded in winning a contract with BP worth $1 million a year. Andre Ngeya, who is business development manager of Grupo Comercio e Industria Limitado The number of cranes on the Luanda skyline is a sign of the unprecedented construction boom in (Coceeme), says: “Our existing contract with BP is mainly for housing maintenance. We are now the capital. Small Angolan companies such as DSM Comercio e Industria Limitado, whose core busi- negotiating a second contract with them and we are also in talks with Total and Sonangol to pro- ness is building homes, clinics, schools and low-income housing as well as providing water filtration vide them with services. systems, are growing continuously to keep pace with the demands of the market. DSM, established “The oil companies can offer us a secure market and guarantees that we will be paid, which is in 2005, has been on CAE-Apoio Empresarial’s books since late 2006. obviously important for us. But working for them isn’t easy. Their standards are such that we have “We know we have a good product,” says administrator Cilas Cardoso. “Our construction system to present ourselves with a certain image of quality. is American – in most cases we use wood panels and steel pillars which allow us to build more quick- “They watch our evolution closely in terms of quality and management to make sure we are ly than companies using European cement-based systems. We manage to cut the costs to the client, moving in the right direction, and they also organise meetings and training sessions to help us, so primarily because we save a lot of time. in this way we are also winners. We became involved with CAE-Apoio Empresarial through BP and “We have a mix of clients including governments, companies and individuals. But one untapped we have already had several meetings, which have definitely helped us to develop our business market is the oil industry where there is a lot of work to be done, and at the same time we can learn and management structure. a lot from them too. The oil companies here have very strict rules and want to make sure that the “There are rules and attitudes that are now starting to penetrate our local market: things companies they give business to are up to international standards. relating to security, quality and respect for the environment that didn’t exist before. Taking these “We’re a small construction company so we’re still going through the process of ensuring that on board has helped our company to develop and gives us a better image when we go to negoti- things like health and safety and quality control are up to scratch. This includes everything from mak- ate contracts with the oil companies. ing sure our books are in order to putting up handrails on all the staircases. “We have done relatively well, and from our contract with BP alone we manage to make up “We see these kinds of requirements as an opportunity to get the company 100 per cent stream- to around one million dollars annually. But it wasn’t easy for us to get to this point because the lined, rather than as a barrier to entry. A business like ours will never be a candidate to work with oil laws in Angola are not always well adapted to the private sector. 16SONANGOLUNIVERSO SUMMER2007 17 P R O D U C T I O N OO nn--ssiittee On the eve of first oil from the Greater Plutonio Field, Block nn ttiimmee 18, Universo meets Mary Shafer-Malicki, newly-appointed leader of the BP Angola Business Unit ‘‘I “I love animals, and when I was very young I decided I was going to be a veterinary doctor,” says the newly-appointed leader of BP’s Angola Business Unit in her office overlooking Luanda’s business district. “But what actually happened was that my father who was in the oil business arranged for me to work as a summer casual at Amoco. “I went back the second summer, and then it was time for university. The medical thing just flew away.” After graduating as a chemical engi- neer, Mary Shafer-Malicki, who grew up in Oklahoma, joined the company where she had first become hooked on oil. After stints in North America, Holland, Scotland and Vietnam she now finds herself in Angola where one of BP’s newest and biggest projects, Greater Plutonio is about to flow first oil. The company has had a presence offshore Angola since the mid 1990s and is a non- operating partner in the development areas of Block 15 (26.67 per cent) and Block 17 (16.67 per cent) as well as Angola LNG (13.64 per cent). But dwarfing these two involve- ments is its operatorship of the development areas blocks 18 and 31. (see panel) OBAL PMP GL SUMMER2007 19
Description: