Oil revenues are being reinvested in Cabinda’s infrastructure to develop the province and improve living standards for its people

HE enclave of Cabinda, separated from Angola by about 25 miles of a narrow strip of the Democratic Republic of the Congo, is the driving force behind Angola’s oil industry.

Petroleum production from large offshore reserves began in 1968 and now accounts for the majority of Angola's output. The province produces 60% of the entire national production, and generates nearly all the country’s foreign exchange earnings. Despite recent deepwater discoveries off mainland Angola, it is quite clear that Cabinda will continue to be the country’s oil mainstay in the foreseeable future.
President and CEO of Sonangol, the state-owned oil company, Mr. Manuel Vicente, comments, “The northern part of the country will continue to have a fundamental role in the oil activity for a very long time, and the largest part of the production continues to come from Cabinda.”

Minister of Petroleum Desiderio Costa says that the new refinery planned for the city of Soyo will increase the value of Cabinda’s fields as the oil produced there is heavy and acid. Minister Costa believes that refining this oil is a way for Angola to gain, and the government is looking for partnerships in carrying out the project.

He says, “The project will be carried out through partnerships with certain countries of the region, either through the government or through private companies.” The ChevronTexaco subsidiary, Cabinda Gulf Oil Company (CABGOC), is the operator in Block Zero, located offshore Cabinda, with a 39.2% share. The block has been operational for decades now and accounts for the majority of Angola’s crude oil production.

As a result of this historical partnership with the Angolan government, ChevronTexaco has been deeply influential in the development of the province, a continuing focus for the company. Managing Director of ChevronTexaco, Mr. James Blackwell, remarks, “One of our concerns is our community development projects. They are a big part of our business here and a big investment.”

Cabinda became a Portuguese protectorate in 1887 after the 1884 conference in Berlin, which saw European colonial powers scrambling to divide the African territories. Governed as a separate colony for over 60 years, Cabinda was incorporated into Angola by the Portuguese in 1956. On independence in 1975, the Alvor Accords were signed stating that the province was to remain an integral part of Angola.

The province has an area of 2,800 square miles, roughly the size of Delaware, and offers an equatorial climate in addition to a sizeable rainforest. Before the war and before the oil boom, the Cabindan economy was based on timber, cocoa, and coffee and local government authorities are implementing measures to revitalize these sectors, as well as stimulate the growth of new areas such as tourism.

ANIBAL ROCHA Governor of Cabinda

Governor of Cabinda, Anibal Rocha states, “Our future strategy is the development of Cabinda’s other riches. In addition to the wood sector, we have agriculture and livestock breeding, as well as deep sea and continental fishing activities. There are also other mineral resources, such as gold.”

Cabinda faces a situation similar to the Niger Delta states in Nigeria. Political tensions are high in some areas of the province, as separatist groups, primarily the Front for the Liberation of the Cabinda Enclave (FLEC), demand a greater share of oil revenue for the province’s population.

Since the early 1990s, the government of Angola has implemented various measures in order to appease the groups, such as encouraging FLEC members to lay down their arms and join the administration, a move that has met with at least partial success. Managing Director of the External Intelligence Service, Brigadier General Fernando Garcia Miala says strong, organized FLEC forces are now non-existent.

Attempts to broaden Cabinda’s commercial base are leading to the development of the timber, cocoa, coffee, and tourism sectors

He explains, “The situation in Cabinda is under control and the most important task now is to reintegrate the people who surrendered into the society. The soldiers of FLEC will be integrated into the national armed forces, some into the provincial police, and others into municipal, district, and provincial administrations. The government is also ready to negotiate on matters related to autonomy.”

The Angolan government has also taken heed of complaints from Cabinda’s population about the lack of infrastructure and development in the region and now reinvests 10% of the province’s oil revenues back into the enclave. This is beginning to improve living standards, a crucial element in defusing the conflict, according to Governor Rocha.

He states, “We believe that the solution of the Cabinda problem will emerge from resolving the socio-economic problems of the population. Cabinda receives a percentage of oil profits, which amounts to US$6 million and is channeled back into the effecting of work programs.”

In September 2002, the Angolan government announced that it was prepared to open talks with Cabindan separatist groups and offer the province some measure of autonomy, but ruled out the prospect of complete independence.