South African participation in the anticipated multibillion dollar development of Angola's oil and gas fields could have a dramatic positive impact on the Republic's economic wellbeing, according to John Thomson, managing director of Sandton based Exhibition Management Services.
He says his company is co-operating with London-based international exhibition organiser, the CWC Group, to stage The Angola Oil & Gas Exhibition and Conference (Angoge 2002) in Luanda between 2 and 5 December.
Thomson expects about 200 companies to show and demonstrate their wares at the exhibition, which is designed to attract top-level oil executives, key production personnel and government officials from around the globe.
Products and services on display will cover 39 categories ranging from catering, chemicals and control systems to water treatment, welding and well control.
Thomson points out that Angola currently produces more than 1 million barrels of oil a day and production is steadily rising.
"Indications are that investors will plough $40 bn dollars into Angolan oil fields over the next 10 years, half of it within five years." He adds that oil fields in sub-Saharan Africa already produce more oil than all North Sea operations combined. "If proposed developments are implemented, output could overtake that of oil fields in the Middle East to make sub-Saharan Africa the world's premier oil supplier."
He notes that growing interest in Angola's potential by the so-called developed world has been spurred by continuing strife and socio-political instability in the Middle East. "It is no secret that most Western countries, notably the United States, are searching for viable alternative sources to keep their economies well-oiled."
The economic spin-offs for South Africa will be considerable, particularly in Cape Town and Saldanha Bay. Construction companies, marine engineers as well as the manufacturers of carbon and stainless steel tubing, piping, spares and pumps as well as ancillary equipment and supplies for off and onshore drilling rigs can look forward to an unprecedented boom when development programmes in Angola take off.
A large percentage of the work is also likely to filter through to specialist manufacturers and suppliers in the Eastern Cape, KwaZulu-Natal and Gauteng. The supply of piping, carbon and stainless steel tubing - much of it sourced from Gauteng. Rob Percival, head of exhibitions for the CWC Group, notes that oil production in Angola is expected to increase to top 1,4 million barrels a day by 2004. "To achieve this increase in production, the Angolan Government and the national oil company, Sociedade Nacional de Combustiveis de Angola - Sonangol - have recognised the need for massive levels of investment in the latest technologies, products and services."
According to Percival, the benefits of investing in the development of Angola's on and offshore oil and gas fields include:
* Favourable geology.
* Low operating costs.
* A constructive approach towards business.
In addition to increasing on and offshore exploration activity, Thomson points out that plans for the construction of a $2 bn, state-of-the-art refinery have reached an advanced stage. Thomson claims that the Angoge 2002 event will give South African companies that participate an unrivalled opportunity for:
* Direct selling.
* Making new business contacts.
* Reinforcing commitment to the marketplace.
* Testing the market.
* Introducing new products and services.
* Keeping abreast of industry developments.
* Exchanging information.
* Getting feedback from the market.
"Angola's long-term potential is vast and virtually untapped," says Percival. "It is a well-known fact in oil industry circles that Angola oil already supplies the United States with 5% of its domestic demand. This has put Angola in the unique position of consistently attracting more foreign direct investment than any other southern African country."
For more information: Geoffrey Gee, Exhibition Management Services, 011 783 7260, [email protected]
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