AS ANGOLA'S national oil company Sonangol moves to further consolidate its upstream operations, it is important to note that investment opportunities are available in refining and downstream activities, as the company also oversees domestic distribution and marketing operations.

A lack of infrastructure has hindered the country's ability to transport gasoline, diesel fuel, bottled gas for cooking and lubricants to the inland provinces. As a result, foreign investment in downstream operations has been slower than in other areas such as exploration, production and refining.

But according to Sonangol's tireless chairman and CEO, Manuel Vicente, the company's corporate strategy over the next three years "will reinforce the power of our subsidies to national operations."

As for downstream activities, that means a greater role for Sonangol Distribuidora, the company's distribution subsidiary. Before 1976, the distribution and marketing of petroleum derivatives in Angola was carried out and controlled by Angol, a state company belonging to former colonial ruler Portugal and four multinationals: Mobil, Shell, Fina and Texaco.

Between 1973 and 1976 the market in Angola for refined petroleum products declined by 68%. This came as a result of political upheavals, including the 1974 Portuguese revolution and Angolan independence in 1975 when the colonial powers who controlled most of the country's main economic structures left Angola.

As a result, Texaco ceased its operations completely in 1976 (only to return years later), Shell leased out its fuel distribution operations to Mobil, and then Mobil, Fina and Angol-owing to the loss of senior staff and their unwillingness to invest-were unable to maintain the level of sup-plies of refined products that the nation required. That's when the state stepped in to nationalize Angol and establish Sonangol by government decree in 1976. The new company's distribution network was a combination of the ones Angol and Texaco left behind. Twenty-five years later, many of those same multinationals are likely wondering how they ever let their foothold in such an oil-rich nation slip away.

After all, Angola is located in a part of sub-Saharan Africa where the market for refined petroleum products is bound to get larger and larger as political stability takes hold in the region. Sonangol officials, however, say there are still plenty of opportunities and plenty of time for foreign companies to beef up their investments in down-stream operations. Besides Sonangol Distribuidora, other Sonangol subsidiaries include Sonangol Pesquisa & Produção, for exploration and production, the telecommunications concern Mercury, the Houston-based firm Sonangol USA and, finally, an airline to support its petroleum operations-Sonair.

Last May, Sonair struck a deal with World Airways to provide regular private charter air ser-vice between Houston and Luanda. According to World Air-ways officials who announced the deal, the new service sup-ports the country's emerging petroleum industry. The initial term of the US$80 million agreement is for 14 months beginning in November 2000 with options to renew for up to two additional years. Hollis Harris, Chairman and Chief Executive Officer of World Airways, said, "We are very pleased to have been selected by Sonair to provide this new service.

This is an exciting time for Angola and its emerging petroleum industry, and we look forward to supporting the country's growth plans." Under the terms of the agreement, World Airways provides direct air transportation for both passengers and freight twice a week. The flights, using late model wide-body aircraft, will depart from Houston on Mon-days and Wednesdays and arrive in Luanda 16 hours after take off. The return flights will leave Luanda on Tuesday and Thurs-day evenings. The Houston Express passenger flight service will be offered only to member companies of the U.S.-Angola Chamber of Commerce who join with Sonangol in a private air charter association.

The deal coincided with the second meeting of the U.S.-Angola Bilateral Consultative Commission in Luanda. The Commission was formed last year to broaden and deepen relations between Angola and the United States, and is focusing on ways to increase trade and investment between the two countries, among other issues.