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AFRICA - Session 3AFRICA - Session 3
Hunting for OIL: Hunting for OIL: AngolaAngola
DemographicsDemographicsOil & War Oil & War
ANGOLAANGOLA
FutureFutureHistoryHistory
ANGOLAANGOLAHISTORYHISTORYStone Age civilization until 1Stone Age civilization until 1stst century AD century AD0-1000 AD – Bantu migration from north0-1000 AD – Bantu migration from north
. . .eastern group. . .eastern group
- population explosionpopulation explosion
western group . . . . western group . . . .
REMEMBER . . . REMEMBER . . . Bantu lived here . . . Bantu lived here . . .
bringing iron age & bringing iron age & agricultural skillsagricultural skills
to Angola!to Angola!
- large migration southlarge migration south
Civilizations Time Lines - Iron Age to the Present
17,000 BCE BOTSWANA
EE XXB PB PA AA AN SN ST IT IU OU O NN
ANGOLA???
Neolithic civilization until 1Neolithic civilization until 1stst century AD century AD0-1000 AD – Bantu migration from north0-1000 AD – Bantu migration from north
ANGOLAANGOLAHISTORYHISTORY
ANGOLAANGOLAHISTORYHISTORY1587: Portuguese establish a fort in Luanda 1587: Portuguese establish a fort in Luanda
w/400 troops: start of the slave tradew/400 troops: start of the slave trade
1587: Portuguese establish a fort in Luanda 1587: Portuguese establish a fort in Luanda w/400 troops: start of the slave tradew/400 troops: start of the slave trade
1836: end Portuguese slave export after > million1836: end Portuguese slave export after > million slaves exported, primarily to Brazilslaves exported, primarily to Brazil
ANGOLAANGOLAHISTORYHISTORY
HISTORYHISTORY1587: Portuguese establish a fort in Luanda 1587: Portuguese establish a fort in Luanda
w/400 troops: start of the slave tradew/400 troops: start of the slave trade
1836: end Portuguese slave export after > million1836: end Portuguese slave export after > million slaves exported, primarily to Brazilslaves exported, primarily to Brazil1885-1975: Portuguese colonialism in Angola1885-1975: Portuguese colonialism in Angola1975: independence from Portugal1975: independence from Portugal1975-2002: continual civil war: MPLA vs UNITA 1975-2002: continual civil war: MPLA vs UNITA 2002: civil war ends, restoration begins2002: civil war ends, restoration begins
ANGOLAANGOLA
Civilizations Time Lines - Iron Age to the Present
17,000 BCE BOTSWANA
EE XXB PB PA AA AN SN ST IT IU OU O NN
PPOORRTTUUGGUUEESSEE
1587
-197
5
CIVIL
WAR
27 ye
ars
PEACE
2002
ANGOLA???
ZAMBIAZAMBIA
NAMIBIANAMIBIA
- western coast of Africa- western coast of Africa- bordered by . . - bordered by . . - size: 481,000 sq milesize: 481,000 sq mile
(2X Texas)(2X Texas)- elevation: 0’-8000’- elevation: 0’-8000’
AATTLLAANNTTIICC OOCCEEAANN
DEMOCRATICDEMOCRATICREPUBLIC OF CONGOREPUBLIC OF CONGO
ANGOLAANGOLAANGOLA TODAYANGOLA TODAY
- demographicsdemographics - population: 18 million- population: 18 million indigenous tribes . . . . 95%indigenous tribes . . . . 95%
mixed . . . . . . . . . . . . . 3%mixed . . . . . . . . . . . . . 3% white . . . . . . . . . . . . . . 2%white . . . . . . . . . . . . . . 2%
- capital: Luanda- capital: Luanda
- official language: Portugueseofficial language: Portuguese
ANGOLAANGOLA
- median age. . . . . . . . 18 yrsmedian age. . . . . . . . 18 yrs- life expectancy . . . . . 38 yrslife expectancy . . . . . 38 yrs
- religions:religions: Roman Catholic . . . . . . . . 64%Roman Catholic . . . . . . . . 64% other Christian. . . . . . . . . 24%other Christian. . . . . . . . . 24% indigenous (tribal) . . . . . . 7%indigenous (tribal) . . . . . . 7%- education: education: (major deficits in education)(major deficits in education)
- literacy. . . . . . . . . . . 40-65%- literacy. . . . . . . . . . . 40-65% - complete primary. . . . . 35%- complete primary. . . . . 35%- annual income: annual income: - extreme poverty. . . . . . 20%- extreme poverty. . . . . . 20% - below poverty line. . . . 68%- below poverty line. . . . 68%
ANGOLAANGOLA
ANGOLAANGOLA- per capita GDP . . . . . . . $9,000 USper capita GDP . . . . . . . $9,000 US- economy:economy: - arable land . . . . . . . . . . . . 3%- arable land . . . . . . . . . . . . 3% - rich in oil, diamonds, gold, fish & forests- rich in oil, diamonds, gold, fish & forests - land mines make development difficult- land mines make development difficult
11% GDP – diamond mining11% GDP – diamond mining 85% GDP – oil production 85% GDP – oil production
- member OPEC since 2007- member OPEC since 2007- 1.9MBPD - 1.9MBPD (million barrels/day)(million barrels/day)
BOTSWANA ANGOLA SIZE (X Texas) 1X 2X DEMOGRAPHICS (UNICEF) population (million) 1.9 18 people/sq mile 8 25 indigenous tribes 97% 95% European extraction 3% 2% (mixed, Indian, Asian, etc) 0% 3% median age (years) 22 18 life expectancy (2007) 35 years 38 years life expectancy (1990) 64 years 40 years LANGUAGES (official) English, Tswana Portuguese RELIGIONS Christian 50-70% 88% Tribal 30-50% 7% (Hindu/Jewish/Moslem/none) 5% EDUCATION literacy (adults) 83% 40-65% primary (% complete) 75% 35% ECONOMY (CIA) per capita GDP (US$) $13,900 $9,000 GDP: mining 41% 11% GDP: oil/gas 85% GDP: tourism 12% NATURAL RESOURCES arable land 5% 3% oil reserves (million barrels) 9,040 gas reserves (trillion cubic ft) 9.3 diamond reserves (billion ct) ??? 0.18 coal reserves (billion tons) 70-200 other copper,nickel fish,coffee BOTSWANA ANGOLA
How does Angola compare? How does Angola compare?
BOTSWANA ANGOLA SIZE (X Texas) 1X 2X DEMOGRAPHICS (UNICEF) population (million) 1.9 18 people/sq mile 8 25 indiginous tribes 97% 95% european extraction 3% 2% (mixed, Indian, Asian, etc) 0% 3% median age (years) 22 18 life expectancy (2007) 35 years 38 years life expectancy (1990) 64 years 40 years LANGUAGES (official) English, Tswana Portuguese RELIGIONS Christian 50-70% 88% Tribal 30-50% 7% (Hindu/Jewish/Moslem/none) 5% EDUCATION literacy (adults) 83% 40-65% primary (% complete) 75% 35% ECONOMY (CIA) per capita GDP (US$) $13,900 $9,000 GDP: mining 41% 11% GDP: oil/gas 85% GDP: tourism 12% NATURAL RESOURCES arable land 5% 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 other copper,nickel fish,coffee BOTSWANA ANGOLA
oilgas
ANGOLAANGOLA
Cabinda
Cabinda
Provin
ce
Provin
ce
Cuanza River
DEM. REP. of the CONGO (ZAIRE)
CongoRiver
EARLY OIL YEARSEARLY OIL YEARS
REP. OF THE CONGO
ANGOLAANGOLA
Cuanza River
EARLY OIL YEARSEARLY OIL YEARS
CongoRiver
1956 – first commercial production1956 – first commercial production
CongoBasin
CuanzaBasin
1910 – first oil exploration 1910 – first oil exploration (on-shore)(on-shore)
1973: OIL becomes principal export!1973: OIL becomes principal export!
PORTUGUESE Joint Ventures 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 1960’s - oil production (onshore) (onshore)
CongoBasin
CuanzaBasin
ANGOLAANGOLA1975: INDEPENDENCE BRINGS CHANGE1975: 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 UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU 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 UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U UU U U U U U U U U U
- few/no trained Angolansfew/no trained Angolans for gov’t/industry jobsfor gov’t/industry jobs
- Portuguese professionalsPortuguese professionals have fled countryhave fled country
- no gov’t dep’ts/agenciesno gov’t dep’ts/agencies in place in place - no funds for joint venturesno funds for joint ventures
- Portugal abdicated control Portugal abdicated control
- see opportunities forsee opportunities for petroleum exploration petroleum exploration - want access to oil leaseswant access to oil leases- need assurance of stabilityneed assurance of stability
Government . . . What do you do?
- widespread civil unrestwidespread civil unrest
ANGOLAANGOLA1975: INDEPENDENCE BRINGS CHANGE1975: INDEPENDENCE BRINGS CHANGE
- 1979: seismic survey of shallow off-shore,- 1979: seismic survey of shallow off-shore, divides off-shore into ‘blocks’ for leasedivides off-shore into ‘blocks’ for lease
CongoBasin
CuanzaBasin
- 1975: government claims right to all petroleum- 1975: government claims right to all petroleum
- 1978: creates new investment type: - 1978: creates new investment type: - - Production Sharing Agreement Production Sharing Agreement – foreign– foreign
company makes all investment, company makes all investment, receives portion of profit w/capreceives portion of profit w/cap
- 1978: establishes ‘Sonongol’ as concessionaire- 1978: establishes ‘Sonongol’ as concessionaire
ANGOLAANGOLACongoBasin
CuanzaBasin
Offshore Blocks 1-13Offshore Blocks 1-13 - follow coastline - follow coastline - <1500’ water depth- <1500’ water depth - ~4000 sq km each- ~4000 sq km each
Oil Companies . . . Oil Companies . . . Which Blocks would you lease?Which Blocks would you lease?
23
Wait! more info . . . Wait! more info . . .
1979 on-shore production: ~35,000 BOPD
1979 off-shore production : ~85,600 BOP
CongoBasin
CuanzaBasin
23
1981 – exploration complete in Bks 1-4 1981 – exploration complete in Bks 1-4 w/discoveries in Bks 2, 3w/discoveries in Bks 2, 3
ANGOLAANGOLA
ANGOLAANGOLA
1985 – production begins in Blocks 2, 31985 – production begins in Blocks 2, 3
CongoBasin
CuanzaBasin
1982-87 – building offshore infrastructure1982-87 – building offshore infrastructure
1981 – exploration complete in Bks 1-4 1981 – exploration complete in Bks 1-4 w/discoveries in Bks 2, 3w/discoveries in Bks 2, 3
ANGOLAANGOLACongoBasin
CuanzaBasin
~232,000 Barrels of Oil!!
~232,000 Barrels of Oil!!
Congratulation government! & oil companies! oil companies!
ANGOLAANGOLA
~232,000 Barrels of Oil!!
~232,000 Barrels of Oil!!
CongoBasin
CuanzaBasin
1985 – Kwanda Base built at Soyo 1985 – Kwanda Base built at Soyo
Government . . . What next ?
- includes operations, docks, includes operations, docks, warehouses, & oil terminalwarehouses, & oil terminal
ANGOLAANGOLA1992 – flare up in civil war fighting1992 – flare up in civil war fighting
Rebel strongholdRebel stronghold
REBELS:REBELS: funded byfunded by diamondsdiamondsstreet fighting
In Luanda
Soyo overrun, base destroyed
March ‘93Gov’t forcesre-take Soyo
ANGOLAANGOLA
Oil Companies . . . What now?Oil Companies . . . What now?
-Kwanda Base in Soyo destroyedKwanda Base in Soyo destroyed w/possibility of more fightingw/possibility of more fighting
- move EVERYTHING off-shore- move EVERYTHING off-shore - the base offices/staff- the base offices/staff
- the warehouses/supplies- the warehouses/supplies- the oil storage terminal- the oil storage terminal
- move EVERYTHING off-shore- move EVERYTHING off-shore
offices for operations, store rooms for suppliesoffices for operations, store rooms for supplies
additional platforms added additional platforms added
housing for all operations staffhousing for all operations staff
ANGOLA
- move EVERYTHING off-shore- move EVERYTHING off-shore
But . . . . What about the oil storage & terminal?But . . . . What about the oil storage & terminal?
bring in an FSO (Floating Storage and Off-loading) shipbring in an FSO (Floating Storage and Off-loading) ship
ANGOLA
housing for all operations staffhousing for all operations staff
ANGOLA
FSO EVERYTHING moved off-shore!EVERYTHING moved off-shore!
bring in an FSO (Floating Storage and Off-loading) shipbring in an FSO (Floating Storage and Off-loading) ship
But . . . . What about the oil storage & terminal?But . . . . What about the oil storage & terminal?
ANGOLA
EVERYTHING moved off-shore!EVERYTHING moved off-shore!
Government . . . .- oil revenues are your funding source for the civil war.
What now??
- all on-shore production shutdown- all on-shore production shutdown- some offshore production shut-in- some offshore production shut-in
very costly & much lost revenue!very costly & much lost revenue!
ANGOLAANGOLACongoBasin
CuanzaBasin
ANGOLA OIL 1985ANGOLA OIL 1985
1980’s shallow water1980’s shallow water< 1500’< 1500’
Late ‘90s ultra-deep waterLate ‘90s ultra-deep water5000’-8000’5000’-8000’
1990’s deep water1990’s deep water1500’- 5000’1500’- 5000’
20022002
CongoBasin
CuanzaBasin
ANGOLA OIL 1985ANGOLA OIL 198520022002
ANGOLAANGOLA
ANGOLA OIL TODAYANGOLA OIL TODAY
1980’s shallow water:1980’s shallow water:
1990’s deep water:1990’s deep water:
late ‘90s ultra-deep water:late ‘90s ultra-deep water:
production Blocks 0, 1, 2, 3production Blocks 0, 1, 2, 3
production Bks 14, 15, 17, 18production Bks 14, 15, 17, 18
discoveries Blocks 31, 32discoveries Blocks 31, 32
ANGOLAANGOLA
How much oil is th
ere??
How much oil is th
ere??
ANGOLAANGOLA
How much oil is th
ere??
How much oil is th
ere??
1985 1985
232,000 bopd232,000 bopd
20092009
1,960,000 bopd1,960,000 bopd25 years later ….25 years later …. almost 10X more!almost 10X more!
Where is it coming fro
m??
Where is it coming fro
m??
CongoBasin
CuanzaBasin ANGOLA OIL PRODUCTION
(by O perator) Exxon 600,000BOPD Total 570,000 Chevron/Texaco 500,000 BP 180,000 Sonangol 110,000 TOTAL 1,960,000BOPD
ANGOLA OIL TODAYANGOLA OIL TODAY
ANGOLAANGOLA ANGOLA OIL PRODUCTION (by Block) BLOCK 15 600,000BOPD 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
TOTAL 1,960,000BOPDWhere does it
go??
Where does it go??
CongoBasin
CuanzaBasin ANGOLA OIL PRODUCTION
(by O perator) Exxon 600,000BOPD Total 570,000 Chevron/Texaco 500,000 BP 180,000 Sonangol 110,000 TOTAL 1,960,000BOPD
ANGOLAANGOLA ANGOLA OIL PRODUCTION (by Block) BLOCK 15 600,000BOPD 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
TOTAL 1,960,000BOPDWhere does it
go??
Where does it go??
ANGOLA OIL EXPORTS
(2007 data)
China ~ 650,000 BOPD
USA ~ 500,000
others ~ 550,000
TOTAL 1,700,000 BOPD
US PETROLEUM IMPORTS
(2009 data)
Canada 2,439,000BOPD Mexico 1,252,000 Venezuela 1,120,000 Saudi Arb. 1,041,000 Nigeria 764,000 Iraq 462,000 Algeria 491,000 Angola 482,000 others 1,990,000
TOTAL 10,041,000BOPD
~5% of our oil im
ports
~5% of our oil im
ports
ANGOLA OIL TODAYANGOLA OIL TODAY
ANGOLAANGOLARemember 1985? . . . . offshore blocks 1,2Remember 1985? . . . . offshore blocks 1,2
THE FUTURETHE FUTURE
- few platforms- few platforms- few gas flares- few gas flares
THE FUTURETHE FUTURE
TODAY . . . . .TODAY . . . . .- 8 production blocks- 8 production blocks- numerous platforms- numerous platforms- - much wasted gasmuch wasted gas
ANGOLAANGOLA
- on-stream 2012on-stream 2012- collect gas from Bkscollect gas from Bks
THE FUTURETHE FUTURE
ANGOLAANGOLATHE LNG THE LNG (liquefied natural gas) PROJECT(liquefied natural gas) PROJECT
- $8 billion project$8 billion project- being built in Soyobeing built in Soyo
- $8 billion project$8 billion project- being built in Soyobeing built in Soyo- collect gas from Bkscollect gas from Bks- on-stream 2012on-stream 2012
THE FUTURETHE FUTURE
ANGOLAANGOLA
5.2 million tons/year of LNG for U.S. 5.2 million tons/year of LNG for U.S. marketsmarkets
eliminates eliminates flaring!flaring!
THE LNG THE LNG (liquefied natural gas) PROJECT(liquefied natural gas) PROJECT
Was the hunt for OIL Was the hunt for OIL in Angola in Angola successfulsuccessful??
ANGOLAANGOLA
1717thth of the top 20 of the top 20 oil producers in the world!oil producers in the world!
OK, but . . . .
how is
OK, but . . . .
how is
the country doing??
the country doing??
ANGOLAANGOLA
Jan 28th 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 . . .. . .(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. . .
ANGOLAANGOLABe the Be the 11stst in your neighborhood to take an in your neighborhood to take an ANGOLANANGOLAN safari! safari!
elephants from Botswana and South Africa elephants from Botswana and South Africa re-introduced into Kissama National Parkre-introduced into Kissama National Park
So . . . So . . . waswas the hunt for OIL the hunt for OIL in Angola in Angola successfulsuccessful??
ANGOLAANGOLA
a qualified ‘YES’a qualified ‘YES’
Hunting for Hunting for Diamonds: NamibiaDiamonds: Namibia
Next week – Session 4Next week – Session 4
http://commons.wikimedia.org/wiki/File:Angola_provinces_named.pnghttp://www.nationmaster.com/country/ao-angola/edu-educationhttps://www.cia.gov/library/publications/the-world-factbook/geos/ao.htmlhttp://www.wfp.org/countries/angolahttp://www.theodora.com/wfbcurrent/angola/angola_economy.htmlhttp://www.rigzone.com/NEWS/article.asp?a_id=78385http://www.state.gov/r/pa/ei/bgn/6619.htmhttp://www.mbendi.com/indy/ming/af/an/p0005.htmhttp://www.unicef.org/infobycountry/angola_statistics.htmlhttp://rs6.loc.gov/cgi-bin/query/r?frd/cstdy:@field(DOCID+ao0102)http://rs6.loc.gov/frd/cs/angola/ao_appen.htmlhttp://countrystudies.us/angola/85.htmhttp://www.sonangol.co.ao/wps/wcm/connect/http://cat.inist.fr/?aModele=afficheN&cpsidt=6271418http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.htmlhttp://www.panoramio.com/user/302377?with_photo_id=7161069http://en.wikipedia.org/wiki/File:FPSO_diagram.PNG“Oil, Glorious Oil”, The Economist, Jan 28, 2010Consultation with Tako Koning ([email protected])
REFERENCESREFERENCES
