AFRICA Session 3 Hunting for OIL Angola ANGOLA

AFRICA - Session 3 Hunting for OIL: Angola

ANGOLA History Future Oil & War Demographics

HISTORY ANGOLA Stone Age civilization until 1 st century AD 0 -1000 AD – Bantu migration from north REMEMBER. . . Bantu lived here. . . - population explosion - large migration south western group. . bringing iron age & agricultural skills to Angola! . . . eastern group

Civilizations Time Lines - Iron Age to the Present E X B P A A N S T I U O N 17, 000 BCE BOTSWANA ? ? ? ANGOLA

HISTORY ANGOLA Neolithic civilization until 1 st century AD 0 -1000 AD – Bantu migration from north

HISTORY ANGOLA 1587: Portuguese establish a fort in Luanda w/400 troops: start of the slave trade

HISTORY ANGOLA 1587: Portuguese establish a fort in Luanda w/400 troops: start of the slave trade 1836: end Portuguese slave export after > million slaves exported, primarily to Brazil

HISTORY ANGOLA 1587: Portuguese establish a fort in Luanda w/400 troops: start of the slave trade 1836: end Portuguese slave export after > million slaves exported, primarily to Brazil 1885 -1975: Portuguese colonialism in Angola 1975: independence from Portugal 1975 -2002: continual civil war: MPLA vs UNITA 2002: civil war ends, restoration begins

ars 20 02 ye 27 15 87 -19 75 Civilizations Time Lines - Iron Age to the Present C P I P O V R I E T L A U G W C U A E E R S 17, 000 BCE BOTSWANA E E X B P A A N S T I U O N ? ? ? ANGOLA

ANGOLA DEMOCRATIC REPUBLIC OF CONGO ANGOLA TODAY A T L A N T I C O C E A N ZAMBIA NAMIBIA - western coast of Africa - bordered by. . - size: 481, 000 sq mile (2 X Texas) - elevation: 0’-8000’

ANGOLA - capital: Luanda - demographics - population: 18 million indigenous tribes. . 95% mixed. . . 3% white. . . 2% - median age. . . . 18 yrs - life expectancy. . . 38 yrs - official language: Portuguese

ANGOLA - religions: Roman Catholic. . . . 64% other Christian. . 24% indigenous (tribal). . . 7% - education: (major deficits in education) - literacy. . . 40 -65% - complete primary. . . 35% - annual income: - extreme poverty. . . 20% - below poverty line. . 68%

ANGOLA - per capita GDP. . . . $9, 000 US - economy: - arable land. . . 3% - rich in oil, diamonds, gold, fish & forests - land mines make development difficult 11% GDP – diamond mining 85% GDP – oil production - member OPEC since 2007 - 1. 9 MBPD (million barrels/day)

How does Angola compare? BOTSWANA SIZE (X Texas) 1 X DEMOGRAPHICS (UNICEF) population (million) 1. 9 people/sq mile 8 indigenous tribes 97% European extraction 3% (mixed, Indian, Asian, etc) 0% median age (years) 22 life expectancy (2007) 35 years life expectancy (1990) 64 years LANGUAGES (official) English, Tswana RELIGIONS Christian 50 -70% Tribal 30 -50% (Hindu/Jewish/Moslem/none) ANGOLA 2 X 18 25 95% 2% 3% 18 38 years 40 years Portuguese 88% 7% 5%

(Hindu/Jewish/Moslem/none) EDUCATION literacy (adults) 83% primary (% complete) 75% ECONOMY (CIA) per capita GDP (US$) $13, 900 GDP: mining 41% GDP: oil/gas GDP: tourism 12% NATURAL RESOURCES arable land 5% oil reserves (million barrels) oil gas reserves (trillion cubic ft) gas diamond reserves (billion ct) ? ? ? coal reserves (billion tons) 70 -200 other copper, nickel BOTSWANA 5% 40 -65% 35% $9, 000 11% 85% 3% 9, 040 9. 3 0. 18 fish, coffee ANGOLA

REP. OF THE CONGO ANGOLA DEM. REP. of the CONGO (ZAIRE) a d e n i nc b Ca rovi P Congo River Cuanza River EARLY OIL YEARS

ANGOLA 1973: OIL becomes principal export! Congo Basin Congo 1960’s - oil production (onshore) River Cuanza Basin 1956 – first commercial production Cuanza River 1910 – first oil exploration (on-shore) EARLY OIL YEARS PORTUGUESE Joint Ventures – shared investment/profits w/foreign companies at 51%-49%

ANGOLA 1975: INDEPENDENCE BRINGS CHANGE Congo Basin Government. . . What do you do? NEW ANGOLAN GOVERNMENT Cuanza Basin - see opportunities for U U U U U petroleum exploration U U U U U - want access to oil leases U U U U U - need assurance of stability U U U U U - Portugal abdicated control INTERNATIONAL OIL COMPANIES - widespread civil unrest U U U U U - Portuguese professionals U U U U U have fled country U U U U U - few/no trained Angolans U U U U U for gov’t/industry jobs U U U U U - no gov’t dep’ts/agencies in place - no funds for joint ventures

ANGOLA 1975: INDEPENDENCE BRINGS CHANGE Congo Basin - 1975: government claims right to all petroleum - 1978: establishes ‘Sonongol’ as concessionaire Cuanza Basin - 1978: creates new investment type: - Production Sharing Agreement – foreign company makes all investment, receives portion of profit w/cap - 1979: seismic survey of shallow off-shore, divides off-shore into ‘blocks’ for lease

Wait! more info. . . Congo Basin Cuanza Basin 3 2 ANGOLA Offshore Blocks 1 -13 1979 off-shore production : ~85, 600 BOP - follow coastline - <1500’ water depth 1979 on-shore production: ~35, 000 BOPD - ~4000 sq km each Oil Companies. . . Which Blocks would you lease?

ANGOLA Congo Basin 3 2 Cuanza Basin 1981 – exploration complete in Bks 1 -4 w/discoveries in Bks 2, 3

ANGOLA Congo Basin Cuanza Basin 1981 – exploration complete in Bks 1 -4 w/discoveries in Bks 2, 3 1982 -87 – building offshore infrastructure 1985 – production begins in Blocks 2, 3

ANGOLA Congo Basin Cuanza Basin ! ! l i O f o s l e r r a B 0 0 0 ~232, Congratulation government! & oil companies!

ANGOLA Government. . . What next ? Congo Basin Cuanza Basin ! ! l i O 1985 – Kwanda Base built at Soyo f o s l e r r a B 0 includes operations, docks, 0 0 , 2 3 2 ~ warehouses, & oil terminal

ANGOLA 1992 – flare up in civil war fighting Soyo overrun, base destroyed REBELS: funded by diamonds street fighting In Luanda March ‘ 93 Gov’t forces re-take Soyo Rebel stronghold

ANGOLA - move EVERYTHING off-shore -Kwanda Base in Soyo destroyed - the base offices/staff w/possibility of more fighting - the warehouses/supplies - the oil storage terminal Oil Companies. . . What now?

ANGOLA - move EVERYTHING off-shore offices for operations, store rooms for supplies housing for all operations staff additional platforms added

ANGOLA But. . What about the oil storage & terminal? - move EVERYTHING off-shore housing for all operations staff bring in an FSO (Floating Storage and Off-loading) ship

ANGOLA But. . What about the oil storage & terminal? FSO EVERYTHING moved off-shore! bring in an FSO (Floating Storage and Off-loading) ship

ANGOLA EVERYTHING moved off-shore! - all on-shore production shutdown - some offshore production shut-in very costly & much lost revenue! Government. . - oil revenues are your funding source for the civil war. What now? ?

ANGOLA Congo Basin Cuanza Basin Late ‘ 90 s ultra-deep water 5000’-8000’ 1990’s deep water 1500’- 5000’ 1980’s shallow water < 1500’ ANGOLA OIL 1985 2002

ANGOLA Congo Basin Cuanza Basin ANGOLA OIL 1985 2002

ANGOLA 1980’s shallow water: production Blocks 0, 1, 2, 3 1990’s deep water: production Bks 14, 15, 17, 18 w o H ? ? elate ‘ 90 s ultra-deep water: r e h t s discoveries Blocks 31, 32 i l i o h c u m ANGOLA OIL TODAY

ANGOLA 2009 1, 960, 000 bopd 25 years later …. almost 10 X more!re? ? e h 1985 t ? s ? i l m i o o r f h g c n u i m 232, 000 bopd m m o w c o t i H re is e h W

ANGOLA Congo Basin Cuanza Basin ANGOLA OIL PRODUCTION (by Block) BLOCK 15 600, 000 BOPD BLOCK 17 530, 000 BLOCK 0 370, 000 Block 18 180, 000 Block 14 130, 000 Block 3 110, 000 Block 2 20, 000 on-shore 20, 000 ? ? o g (by O perator) t i s e o d 600, 000 BOPD e r e h W 570, 000 Exxon Total Chevron/Texaco 500, 000 BP 180, 000 Sonangol 110, 000 TOTAL 1, 960, 000 BOPD ANGOLA OIL TODAY

ANGOLA Congo Basin US PETROLEUM IMPORTS (2009 data) Cuanza Canada 2, 439, 000 BOPD Basin ANGOLA OIL PRODUCTION ANGOLA OIL EXPORTS (by Block) (2007 data) China ~ 650, 000 BOPD BLOCK 15 600, 000 BOPD USA BLOCK 17 ~ 500, 000 530, 000 others BLOCK 0 ~ 550, 000 370, 000 Block 18 180, 000 TOTAL 1, 700, 000 BOPD Block 14 130, 000 Block 3 110, 000 Block 2 20, 000 on-shore 20, 000 s ? t ? r o o p g t m i i l i s o e r o u d o f e o r e % h ~5 W Mexico 1, 252, 000 perator) Venezuela(by O 1, 120, 000 Saudi Arb. 1, 041, 000 Nigeria 764, 000 Exxon 600, 000 BOPD Iraq 462, 000 Total 570, 000 Algeria 491, 000 Chevron/Texaco 500, 000 Angola 482, 000 BP 180, 000 others 1, 990, 000 Sonangol TOTAL 110, 000 10, 041, 000 BOPD 1, 960, 000 BOPD TOTAL 1, 960, 000 BOPD ANGOLA OIL TODAY

ANGOLA Remember 1985? . . offshore blocks 1, 2 - few platforms - few gas flares THE FUTURE

ANGOLA TODAY. . . - 8 production blocks - numerous platforms - much wasted gas THE FUTURE

ANGOLA THE LNG (liquefied natural gas) PROJECT - $8 billion project - being built in Soyo - collect gas from Bks - on-stream 2012 THE FUTURE

ANGOLA THE LNG (liquefied natural gas) PROJECT eliminates flaring! - $8 billion project - being built in Soyo - collect gas from Bks - on-stream 2012 5. 2 million tons/year of LNG for U. S. markets THE FUTURE

ANGOLA 17 th of the top 20 oil producers in the world! Was the hunt for OIL s i w in Angola successful ? o. h ? ? . . g. n i t o u d b , y r K t n O u o c e h t

ANGOLA. . . one of the world's fastest-growing economies. . . pace of development since peace returned eight years ago has been staggering. . . landmines are steadily being removed. . . 1 million homes for shack-dwellers by 2012. . . slums make way for. . . elegant high-rise hotels, offices and apartment blocks. . . Jan th 28 0 201 . . . new roads and rail track are speeding up transport. . . . hotels, shopping centers, hospitals, universities - even whole new towns - rise up. . . teachers and doctors are being trained. . . clinics opened. . . children sent back to school. . . water-purification plants installed. . . electricity brought to villages and urban slums. . . press is becoming a bit freer . . . country's first democratic elections in 16 years, held in 2008, were reasonably fair. . . (President) José Eduardo dos Santos has pledged-for the first time-to reduce corruption. . .

ANGOLA Be the 1 st in your neighborhood to take an ANGOLAN safari! elephants from Botswana and South Africa re -introduced into Kissama National Park

ANGOLA So. . . was the hunt for OIL in Angola successful? a qualified ‘YES’

Next week – Session 4 Hunting for Diamonds: Namibia

REFERENCES http: //commons. wikimedia. org/wiki/File: Angola_provinces_named. png http: //www. nationmaster. com/country/ao-angola/edu-education https: //www. cia. gov/library/publications/the-world-factbook/geos/ao. html http: //www. wfp. org/countries/angola http: //www. theodora. com/wfbcurrent/angola_economy. html http: //www. rigzone. com/NEWS/article. asp? a_id=78385 http: //www. state. gov/r/pa/ei/bgn/6619. htm http: //www. mbendi. com/indy/ming/af/an/p 0005. htm http: //www. unicef. org/infobycountry/angola_statistics. html http: //rs 6. loc. gov/cgi-bin/query/r? frd/cstdy: @field(DOCID+ao 0102) http: //rs 6. loc. gov/frd/cs/angola/ao_appen. html http: //countrystudies. us/angola/85. htm http: //www. sonangol. co. ao/wps/wcm/connect/ http: //cat. inist. fr/? a. Modele=affiche. N&cpsidt=6271418 http: //www. eia. doe. gov/pub/oil_gas/petroleum/data_publications/company_level_imports/cu rrent/import. html http: //www. panoramio. com/user/302377? with_photo_id=7161069 http: //en. wikipedia. org/wiki/File: FPSO_diagram. PNG “Oil, Glorious Oil”, The Economist, Jan 28, 2010 Consultation with Tako Koning (takokoning@hotmail. com)