ANGOLA - BP Operations.

Of BP's interest in producing and other E&P blocks in Angola, the major is the operator in a major portion of deep-water Block 18 where it is developing the Greater Plutonio field. This should be on stream in May 2007 and will have a peak production of 220,000 b/d.

BP is developing another field in the western part of Block 18 which should be on stream in 2011 with a capacity of 100,000. BP's 50% partner in Block 18 is state-owned Sinopec, China's largest refiner of West African crude oils which is focusing on Angola.

BP operates the north-eastern and south-eastern parts of deep-water Block 31, where it is developing two fields to be on stream in 2011. Each of NE and SE will have a capacity of 130,000 b/d.

Sonangol-Sinopec Int'l (SSI) in May 2006 offered signature bonuses totalling $2.2 bn for non-operating rights to discarded parts of Blocks 17 and 18. In the same month Sonangol had offered operatorships for those areas to Total and Petrobras of Brazil.

Total offered a bonus of $670m for a 40% stake in the part of Block 17. Petrobras offered $550m for operatorship in the part of Block 18.

Sonangol's Concession Control Committee is the body which oversees the operations of foreign oil E&P companies in Angola. This is apart from the fact that Sonangol is the sole concessionaire in Angola, the only body which parcels and allocates blocks as well as awarding them. The key factors for the control committee in considering its renewal or termination of an oil concession are based on three main areas: the reports, the fulfilment of pre-agreed schedules, and the results from all phases of research, exploration and production.

The World Bank and the IMF have criticised the Angolan government for letting Sonangol play a dual role as state concessionaire/regulator and as an integrated company competing with foreign firms in upstream and downstream petroleum businesses.