BP in AngolaUK – Angola investment forum

May 2012

Block 15 BP 26,67%) Operator – Exxon

Block 17 BP (16.67%) Operator – Total

Block 19 BP (50%) Operator – BP

Angola LNG BP (13.64%)

BP in Angola

• Operations in Angola growing since 2000, with a total investment in excess of $15 billion.

• Going to invest over $15 billion over the next 10 years.

• Total BP net average annual production ~175mbd+

• Block 18 – currently producing ~180mbd (gross)

• Block 31 – first oil scheduled for 3Q2012

• Blocks 15 – currently producing ~400mbd+ (gross)

• Block 17 – currently producing ~600mbd+ (gross)

• Blocks 19, 20, 24, 25 – new pre-salt deep and ultra deepwater blocks – in exploration phase (completed seismic aquisition)

• Block 26 – in exploration phase (drilling)

Block 20 BP (30%) Operator – Cobalt

Block 25 BP (15%) Operator – Total

Block 26 BP (40%) Operator – Petrobras

Block 31 BP (26.67%) Operator – BP

Block 24 BP (50%) Operator – BP

Block 18 BP (50%) Operator – BP

Buoyancy Cans

PIP Spools

Piles

Tree assembly Wellhead and connectormanufacture

Pipe fab. and spooling. Fabrication of FTAs, ITAs, buckle mitigation measures and flowline spools.

Operating base

Manifold and jumperspool fabrication

Cameron Base expansion

URF: Heavy URF: Heavy FabricationFabrication

Spool BaseSpool Base

Operations & Operations & Light FabricationLight Fabrication

Marine Transport

Trees and Trees and WellheadsWellheads FPSO: Fabrication & IntegrationFPSO: Fabrication & Integration

LuandaLuanda

DandeDande

Porto AmboimPorto Amboim

Block 31 PSVM Development ProjectDeliver a step change in Angolan Content

Integration

Dande

P.Amboim

FPSO: FabricationFPSO: FabricationLobitoLobito

Misc. Atmospheric Vessels

Suction Piles

Process Piperack

Module Support Stools Fabrication

HP & LP Separation Chemical Injection Flare TowerTurret

Primary Steel

Slug Catcher & Flare Drums

Sonamet Yard Expansion

PetromarPetromarPotential for: • Tie-in Spools• Buoyancy Tanks• Multi-jointing

• Fabrication of structural steel work for FTA / ITA • Manifolds

Oil spill response capability

We significantly enhanced our ability to respond to an incident in Angola in 2011:•Built and tested a capping device•Developed a capping plan•Subsea dispersant injection plans•Emergency and oil spill response plans

People and Offices

BP Supply Base at Sonils

− L&M and support to all offshore operations

− ca. 100 staff

Total staff based in Angola :• Angolan staff: 645 (72%)• Expats: 253• Agency contractors: ~300

Supported by ca. 200 staff based in Sunbury

Total staff based in Angola :• Angolan staff: 645 (72%)• Expats: 253• Agency contractors: ~300

Supported by ca. 200 staff based in Sunbury

DeBeers Office

− Ocupying 4 floors

− ca. 200 staff

Torres Atlantico Tower

− ca. 440 staff in the office (4 floors)

− 6 floors in the residential complex

− Shared with Sonangol PP and Exxon

Soyo

Dande

PortoAmboim

Lobito

Sunbury

− Building A (ca. 200 staff)

GtP FPSO

PSVM FPSO

ChallengesMeeting the challenges through good Corporate Responsibility

• Legal and regulatory environment

• Institutional capability

• Shortage of skilled labour

• Deficit of local companies

• Poverty and unemployment

• Security

• Infrastructure

• Health care

• Transparency and corruption

The country is going through rapid development with significant progress in addressing the areas above.

BP value chain

• Enhance local content through the value chain (both on large and small contracts)

• Enterprise centre (CAE) – local content

• Responsible operator (ethics and compliance)

Angolan Capability• Angolanization (recruitment, training, succession plans)• UAN engineering programme• Schools programme• Master on oil and gas law (LLM)• Institutional capability projects.

Community & Social Projects • Microcredit programmes• Road safety programme• Environmental programmes

Angola is the second largest oil producer in Sub-Saharan Africa after Nigeria, and is the third largest economy in Sub-Saharan Africa, with a favourable economic outlook, despite the recent global economic trends.

Challenges and opportunities

BP in Angola

Our strategic aim is to build a material, high performing and sustainable business in Angola, that benefits Angola and our shareholders.

Strategic priorities: •Safe, reliable and compliant operations•Building staff capability•Increase local companies’ participation in contracts with the oil industry•Responsible operator and partner in Angola’s development

 

Community & Social Investment Projects

Main Projects:•UAN (Engineering and Sciences Faculties) support programme•Master in petroleum law (LLM)•School and community libraries•Enterprise Centre (CAE) – handed over to Chamber of Commerce and Industry in Jan 2011•Road safety programme•Greater Plutonio microcredit (Huambo and Benguela)•Conservation agriculture project•Accelerated education project•Future generation (School Parliament Project)

And many others…

Angola Paralympic team sponsorship

Thank you!