| |
This month’s front page story was that the
smaller Angola just past the giant Nigeria as Africa's number
one oil producer -- proving that size doesn't always matter. In
April, Angola produced 1.92 million barrels per day (b/d)
according to the Organization of Petroleum Exporting Countries
(OPEC). Nigeria produced 1.88 million b/d, the first time its
output dropped this low.
To the many smaller oil producing countries that
are just beginning a stronger quest for significance as an oil
supplier, Angola can serve as a winning model.
Africa is a continent of 54 countries, with
proven reserves of 75.4 billion barrels. Five countries dominate
Africa's upstream oil production. Together they account for 85%
of the continent's oil production and are Nigeria, Libya,
Algeria, Egypt and Angola. Other oil producing countries are
Gabon, Congo, Cameroon, Tunisia, Equatorial Guinea, the
Democratic Republic of the Congo, and Cote d'Ivoire. Exploration
is taking place in a number of other countries that aim to
increase their output or become first time producers. Included
in this list are Chad, Sudan, Namibia, South Africa and
Madagascar while Mozambique and Tanzania are potential gas
producers.
The Portuguese discovered petroleum in Angola in
1955. Production began in the Cuanza basin in the 1950s, in the
Congo basin in the 1960s, and in the exclave of Cabinda in 1968.
The government granted operating rights for Block Zero to the
Cabinda Gulf Oil Company, a subsidiary of ChevronTexaco, in
1955. Production did not really start to climb until the
discovery of oil offshore Cabinda in the 1960s.
Generally, other industry media sources largely
contribute Angola's first place position to Nigeria being a
failure and therefore losing the race.
AFRIK
ENERGY News instead cites winning strategies that
show Angola rightfully and earnestly won its new position as oil
leader.
Other media sources primarily contribute Angola's
overtaking of Nigeria to continued insecurity in the Niger
Delta, where militant groups -- waging a long-running violent
campaign to press for greater local control over oil revenues --
have attacked local oil facilities.
Angola's oil rich onland Cabinda's oil resources
was also once threatened by militants. A separatist movement for
the independence of Cabinda had been waged war against the
Angola government since 1961.
Like Nigeria's Niger Delta residents, Cabinda
militants also claimed ethnic subjugation by their federal
government. Cabinda residents were also critical of the role of
major oil companies in the province. In 1999, an oil spill near
the Malonga oil base dealt a severe blow to Cabinda's struggling
local fishing industry. Oil giant Chevron-Texaco gave about
$2000 to 10 percent of the affected fishermen. Cabindan
fishermen have attributed reduced fish stocks to continued
pollution. Like many Niger Delta residents, many Cabindans said
that they expect oil companies to contribute more to the
development of the impoverished province.
Since 2002, the Angolan government concentrated armed forces in
Cabinda to quash militant attacks.
Today Cabinda oil is being explored without
incidence. Recently exploratory wells tested positive for oil
and gas. Australia's Roc Oil chief executive John Doran, says
his company is encouraged by its onshore oil discovery in
Cabinda Province. This production will be the first flow from
Cabinda in 39 years. If onshore Angola proves to be as prolific
in oil production as offshore Angola, Angola's premiere position
as number one may be a permanent status.
Angola still has many oil blocks waiting. Angola
has divided its exclusive maritime economic zone into 76 oil
blocks, of which 35 are active. Block Zero, the main
oil-producing block offshore Cabinda, still accounts for more
than half of Angola's oil production.
Nigeria's new government attitude and policy
towards large oil companies could create further chaos in the
Nigerian oil industry. This month, President Umaru Yar'Adua
announced that Shell would have to quit Ogoniland as a result of
lack of truce between it and the host communities. Yar'Adua said
another oil company will come in to replace it. Last month,
Nigeria requested $1.9 billion in back taxes from Shell and
ExxonMobil on contracts that were struck in the 1990s, when the
oil price was a fraction of what it is today.
Angola's attitude is showing change also. To
acquire oil blocks in Angola was once considered open only to
big companies with very, very deep pockets. The exploration
rights to the most recent concession round had two deepwater
blocks originally tied to the construction of a refinery, but
Sonangol decided to change the bidding and separate the refinery
construction, thus allowing smaller, non-integrated players the
chance to participate.
Nigeria still has not met local content -
employment of local residents - by big oil companies.
Over the last past years Angola has invested
heavily in technology and training to optimize production and
has been slowing positioning itself into the number one oil
producer spot.
When Angola became independent in 1975, several
oil companies abandoned Angola for one reason or another,
leaving behind its infrastructures and former employees. To this
end, the Angola national oil company, Sonangol, which was formed
in 1976, bought the premises of Texaco, Fina and Shell and
through an agreement acquired those of Mobil. In this process
Sonangol also absorbed former employees of oil companies that
once operated in Angola.
The absence of qualified nationals for the local
oil industry, forced Sonangol to begin paying special attention
to the training and professional development of its employees.
The first group of students was sent to Italy with scholarships
co-aided by ENI-Italian Oil Group. A second, larger group went
to Algeria. The first sponsored students graduated and returned
to Angola by the end of 1970s. They became the driving force
behind a more modern Sonangol.
Headquartered in Luanda, Sonangol, the company
has overseas offices in Brazzaville, Congo; Hong Kong, China;
Houston, USA, London, England, and Singapore.
Nigeria held presidential elections on April 21,
2007, marking the first time in Nigeria's history that the
country passed control from one civilian government to another.
In Angola, Jose Eduardo dos Santos has been
president for 29 years. Interestingly, the president received an
engineering degree from the Azerbaijan Oil and Chemistry
Institute while studying in Russia.
Angola's June loadings will include seven cargoes
apiece for BP and Total, and six for Exxon Mobil. StatoilHydro
ASA, Eni SpA and Chevron are scheduled to lift five cargoes.
Galp Energia SGPS SA will load one cargo of Nemba crude.
State-run Sonangol SA has 22 cargoes, while Sonangol Sinopec
International, a venture between the national oil company and
China's biggest refiner, will load two Plutonio shipments.
Write to or for AFRIK
ENERGY News. We value your comments,
suggestions and ideas. Email gpearson@afrikenergy.com
|