1. AFRICA - Session 3 Hunting for OIL: Angola

2. Demographics Oil & War ANGOLAFuture History

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

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

5. Neolithic civilization until 1 st century AD 0-1000 AD – Bantu migration from north ANGOLAHISTORY

6. ANGOLAHISTORY 1587: Portuguese establish a fort in Luanda w/400 troops: start of the slave trade w/400 troops: start of the slave trade

7. 1587: Portuguese establish a fort in Luanda w/400 troops: start of the slave trade w/400 troops: start of the slave trade 1836: end Portuguese slave export after > million slaves exported, primarily to Brazil slaves exported, primarily to BrazilANGOLAHISTORY

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

9. Civilizations Time Lines - Iron Age to the Present 17,000 BCE BOTSWANA E X B P A A N S T I U O N PORTUGUESE 1587-1975 CIVILWARCIVILWAR 27 years PEACEPEACE 2002 ANGOLA ???

10. ZAMBIA NAMIBIA - western coast of Africa - bordered by.. - size: 481,000 sq mile (2X Texas) (2X Texas) - elevation: 0’-8000’ ATLANTIC OCEANATLANTIC OCEANATLANTIC OCEANATLANTIC OCEAN DEMOCRATIC REPUBLIC OF CONGO ANGOLA ANGOLA TODAY

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

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

13. ANGOLA - per capita GDP....... $9,000 US - economy: - arable land............ 3% - arable land............ 3% - rich in oil, diamonds, gold, fish & forests - rich in oil, diamonds, gold, fish & forests - land mines make development difficult - land mines make development difficult 11% GDP – diamond mining 11% GDP – diamond mining 85% GDP – oil production 85% GDP – oil production - member OPEC since 2007 - 1.9MBPD (million barrels/day)

14. BOTSWANAANGOLA SIZE (X Texas)1X2X DEMOGRAPHICS (UNICEF) population (million)1.918 people/sq mile825 indigenous tribes97%95% European extraction3% 2% (mixed, Indian, Asian, etc)0% 3% median age (years)2218 life expectancy (2007)35 years38 years life expectancy (1990)64 years40 years LANGUAGES (official)English, TswanaPortuguese RELIGIONS Christian50-70%88% Tribal30-50%7% (Hindu/Jewish/Moslem/none) 5% EDUCATION literacy (adults)83%40-65% primary (% complete)75%35% ECONOMY (CIA) per capita GDP (US$)$13,900$9,000 GDP: mining41%11% GDP: oil/gas 85% GDP: tourism12% NATURAL RESOURCES arable land5%3% oil reserves (million barrels) 9,040 gas reserves (trillion cubic ft) 9.3 diamond reserves (billion ct)???0.18 coal reserves (billion tons)70-200 othercopper,nickelfish,coffee BOTSWANAANGOLA How does Angola compare?

15. BOTSWANAANGOLA SIZE (X Texas)1X2X DEMOGRAPHICS (UNICEF) population (million)1.918 people/sq mile825 indiginous tribes97%95% european extraction3% 2% (mixed, Indian, Asian, etc)0% 3% median age (years)2218 life expectancy (2007)35 years38 years life expectancy (1990)64 years40 years LANGUAGES (official)English, TswanaPortuguese RELIGIONS Christian50-70%88% Tribal30-50%7% (Hindu/Jewish/Moslem/none) 5% EDUCATION literacy (adults)83%40-65% primary (% complete)75%35% ECONOMY (CIA) per capita GDP (US$)$13,900$9,000 GDP: mining41%11% GDP: oil/gas 85% GDP: tourism12% NATURAL RESOURCES arable land5%3% oil reserves (million barrels) 9,040 gas reserves (trillion cubic ft) 9.3 diamond reserves (billion ct)???0.18 coal reserves (billion tons)70-200 othercopper,nickelfish,coffee BOTSWANAANGOLA oil gas

16. ANGOLA Cabinda Province Cuanza River DEM. REP. of the CONGO (ZAIRE) Congo River EARLY OIL YEARS REP. OF THE CONGO

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

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

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

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

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

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

23. ANGOLA Congo Basin Cuanza Basin ~232,000 Barrels of Oil!! oil companies! Congratulation government! & oil companies!

24. ANGOLA ~232,000 Barrels of Oil!! Congo Basin Cuanza Basin 1985 – Kwanda Base built at Soyo Government... What next ? - includes operations, docks, warehouses, & oil terminal warehouses, & oil terminal

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

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

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

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

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

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

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

32. Congo Basin Cuanza Basin ANGOLA OIL 1985 2002 ANGOLA

33. ANGOLA OIL TODAY 1980’s shallow water: 1990’s deep water: late ‘90s ultra-deep water: production Blocks 0, 1, 2, 3 production Bks 14, 15, 17, 18 discoveries Blocks 31, 32 ANGOLA How much oil is there??

34. ANGOLA 1985 232,000 bopd 2009 1,960,000 bopd 25 years later …. almost 10X more! almost 10X more! Where is it coming from??

35. Congo Basin Cuanza Basin ANGOLA OIL PRODUCTION (by Operator) Exxon600,000BOPD Total570,000 Chevron/Texaco500,000 BP180,000 Sonangol110,000 TOTAL1,960,000BOPD ANGOLA OIL TODAY ANGOLA ANGOLA OIL PRODUCTION (by Block) BLOCK 15600,000BOPD BLOCK 17530,000 BLOCK 0370,000 Block 18180,000 Block 14130,000 Block 3110,000 Block 220,000 on-shore20,000 TOTAL1,960,000BOPD Where does it go??

36. Congo Basin Cuanza Basin ANGOLA OIL PRODUCTION (by Operator) Exxon600,000BOPD Total570,000 Chevron/Texaco500,000 BP180,000 Sonangol110,000 TOTAL1,960,000BOPD ANGOLA ANGOLA OIL PRODUCTION (by Block) BLOCK 15600,000BOPD BLOCK 17530,000 BLOCK 0370,000 Block 18180,000 Block 14130,000 Block 3110,000 Block 220,000 on-shore20,000 TOTAL1,960,000BOPD Where does it go?? ANGOLA OIL EXPORTS (2007 data) China~ 650,000BOPD USA~ 500,000 others~ 550,000 TOTAL1,700,000BOPD US PETROLEUM IMPORTS (2009 data) Canada2,439,000BOPD Mexico1,252,000 Venezuela1,120,000 Saudi Arb.1,041,000 Nigeria764,000 Iraq462,000 Algeria491,000 Angola482,000 others1,990,000 TOTAL10,041,000BOPD ~5% of our oil imports ANGOLA OIL TODAY

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

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

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

40. - $8 billion project - being built in Soyo - collect gas from Bks - on-stream 2012 THE FUTURE ANGOLA 5.2 million tons/year of LNG for U.S. markets eliminates flaring! THE LNG (liquefied natural gas) PROJECT

41. Was the hunt for OIL in Angola successful ? ANGOLA 17 th of the top 20 oil producers in the world! OK, but.... how is the country doing??

42. ANGOLA Jan 28 th 2010... one of the world's fastest-growing economies...... pace of development since peace returned eight years ago has been staggering...... hotels, shopping centers, hospitals, universities - even whole new towns - rise up...... slums make way for... elegant high-rise hotels, offices and apartment blocks...... country's first democratic elections in 16 years, held in 2008, were reasonably fair... press is becoming a bit freer... landmines are steadily being removed...... new roads and rail track are speeding up transport...... 1 million homes for shack-dwellers by 2012..... teachers and doctors are being trained......(President) José Eduardo dos Santos has pledged-for the first time-to reduce corruption...... children sent back to school...... clinics opened...... water-purification plants installed...... electricity brought to villages and urban slums...

43. 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

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

45. Hunting for Diamonds: Namibia Next week – Session 4

46. 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 (takokoning@hotmail.com)takokoning@hotmail.comREFERENCES