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AFRICA - Session 3
Hunting for OIL:
Angola
ANGOLA
History
Future
Oil & War
Demographics
ANGOLA
HISTORY
Stone Age civilization until 1st 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
B
A
N
T
U
E
X
P
A
S
I
O
N
17,000 BCE
BOTSWANA
???
ANGOLA
HISTORY
ANGOLA
Neolithic civilization until 1st 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
Civilizations Time Lines - Iron Age to the Present
B
A
N
T
U
E
X
P
A
S
I
O
N
17,000 BCE
???
ANGOLA
P
O
R
T
U
G
U
E
S
E
C
I
V
I
L
W
A
R
P
E
A
C
E
BOTSWANA
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
(2X 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 . . . . . . . $9,000 US
- economy:
- arable land . . . . . . . . . . . . 3%
- rich in oil, diamonds, gold, fish & forests
- land mines make development difficult
11% GDP – diamond mining
85% GDP – oil production
- member OPEC since 2007
- 1.9MBPD (million barrels/day)
How does Angola compare?
BOTSWANA
1X
SIZE (X Texas)
DEMOGRAPHICS (UNICEF)
population (million)
1.9
people/sq mile
8
indigenous tribes
97%
European extraction
3%
(mixed, Indian, Asian, etc)
0%
median age (years)
22
life expectancy (2007)
35 years
life expectancy (1990)
64 years
LANGUAGES (official)
English, Tswana
RELIGIONS
Christian
50-70%
Tribal
30-50%
(Hindu/Jewish/Moslem/none)
ANGOLA
2X
18
25
95%
2%
3%
18
38 years
40 years
Portuguese
88%
7%
5%
(Hindu/Jewish/Moslem/none)
EDUCATION
literacy (adults)
83%
primary (% complete)
75%
ECONOMY (CIA)
per capita GDP (US$)
$13,900
GDP: mining
41%
GDP: oil/gas
GDP: tourism
12%
NATURAL RESOURCES
arable land
5%
oil reserves (million barrels)
gas reserves (trillion cubic ft)
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
ANGOLA
REP. OF THE CONGO
DEM. REP. of the CONGO (ZAIRE)
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 –Cuanza
first commercial production
1910 – River
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?
- Portugal abdicated control
INTERNATIONAL OIL COMPANIES
NEW ANGOLAN
GOVERNMENT
Cuanza
- widespread civil unrest
Basin
- see opportunities
U U U U U U U U Ufor
U
U U U U U U professionals
UUUU
- Portuguese
U U U Uexploration
UUUUUU
UUUUUUUUUU
petroleum
have
UUUUUUUUUU
U Ufled
U U Ucountry
UUUUU
- want access
U U U U Uto
U Uoil
U Uleases
U
UUUU
U U U U UAngolans
U
- few/no
trained
U U U U U U U of
U Ustability
U
UUUUUUUUUU
- need assurance
for Ugov’t/industry
UUUUUUUUUU
U U U U U U U U U jobs
UUUUUUUUUU
U U U Udep’ts/agencies
UUUUUU
- no gov’t
in place
- no funds for joint ventures
ANGOLA
1975: INDEPENDENCE BRINGS CHANGE
Congo
Basin
- 1975: government claims right to all petroleum
- 1978:
Cuanza establishes ‘Sonongol’ as concessionaire
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
ANGOLA
Wait! more info . . .
Congo
Basin
2
3
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
Cuanza
Basin
Oil Companies . . .
Which Blocks would you lease?
ANGOLA
Congo
Basin
2
3
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
Congratulation government! & oil companies!
ANGOLA
Government . . . What next ?
Congo
Basin
Cuanza
Basin
1985 – Kwanda Base built at Soyo
- includes operations, docks,
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
- theBase
baseinoffices/staff
Soyo destroyed
w/possibility
of more fighting
- the warehouses/supplies
- the oil storage terminal
Oil Companies . . . What now?
ANGOLA
- move EVERYTHING off-shore
for operations,
store rooms for supplies
housing for alloffices
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 ‘90s 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
late ‘90s ultra-deep water:
discoveries Blocks 31, 32
ANGOLA OIL TODAY
ANGOLA
2009
1,960,000 bopd
25 years later ….
almost 10X more!
1985
232,000 bopd
ANGOLA
Congo
Basin
Cuanza
Basin
ANGOLA OIL PRODUCTION
(by O perator)
Exxon
Total
Chevron/Texaco
BP
Sonangol
TOTAL
600,000BOPD
570,000
500,000
180,000
110,000
1,960,000BOPD
ANGOLA OIL PRODUCTION
(by Block)
BLOCK 15
BLOCK 17
BLOCK 0
Block 18
Block 14
Block 3
Block 2
on-shore
TOTAL
600,000BOPD
530,000
370,000
180,000
130,000
110,000
20,000
20,000
1,960,000BOPD
ANGOLA OIL TODAY
ANGOLA
Congo
Basin
US PETROLEUM IMPORTS
(2009 data)
Cuanza
Canada
2,439,000BOPD
Basin
ANGOLA OIL1,252,000
PRODUCTION
Mexico
perator)
Venezuela(by O
1,120,000
Saudi Arb.
1,041,000
Nigeria
764,000
Exxon
600,000BOPD
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
TOTAL
ANGOLA OIL
ANGOLA
OILPRODUCTION
EXPORTS
(bydata)
Block)
(2007
China
~ 650,000 BOPD
TOTAL
1,960,000BOPD
BLOCK 15
600,000BOPD
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
ANGOLA
OIL
TODAY
10,041,000BOPD
110,000
1,960,000BOPD
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
17th of the top 20
oil producers in the world!
Was the hunt for OIL
in Angola successful?
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 . . .
. . . 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 1st 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/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/p0005.htm
http://www.unicef.org/infobycountry/angola_statistics.html
http://rs6.loc.gov/cgi-bin/query/r?frd/cstdy:@field(DOCID+ao0102)
http://rs6.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/?aModele=afficheN&cpsidt=6271418
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/cur
rent/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 ([email protected])