BP in Angola Presentation

1

• BP in Angola
• Greg Coleman
• Vice-President, Investor Relations
• Paris, 30 May 2002

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This presentation and the associated slides and
discussion contain statements, particularly those
regarding capital employed, capital expenditure,
cashflows, costs, savings, debt, demand,
disposals, dividends, earnings, efficiency,
gearing, growth, investment, margins,
performance, prices, production, productivity,
profits, reserves, returns, sales, strategy,
synergies, tax rates, trends, value, volumes, the
effects of BP merger and acquisition activity,
which are or may be forward looking statements.
Actual results may differ from those expressed in
such statements, depending on a variety of
factors including future levels of industry
product supply, demand and pricing political
stability and economic growth development and
use of new technology actions of competitors
and natural disasters, wars and acts of
terrorism. Statements and data contained in this
presentation and the associated slides and
discussions, which relate to the performance of
BP in this and future years, represent plans,
targets or projections. Unless otherwise made
clear, references to forward measures are to such
measures calculated on a pro forma basis. These
and past performance measures, unless otherwise
stated, have been adjusted for special
items.   May 2002
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outline

• Upstream growth strategy
• Angola context
• BP in Angola
• Technology implementation
• Conclusion

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strategic delivery since 1999
costs down 20 returns
15 disposals 10 bn Alaska Arco
Veba accretive

_
sustainable 7.7 to 8.5 bn at
profitability mid-cycle
in 2001
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delivering group strategy

• organic investment
• high grade portfolio
• capital efficiency
• operating efficiency
• increase mid-cycle returns
• grow capital employed
• grow dividend
• within a disciplined financial framework

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future outlook
Production (mboed)
Production cost (/boe)

5000
4
5.5
4000
3
Base
3000
2
Total
2000
1
Growth
0
0
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'98
'99
'00
'01
'02
'03
'04
'05
Source BP Data
Source BP Data
As of February 2001
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new projects

• No exploration required
• No technology step-out
• All teams in place

2003-5
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new project production
mboed
resources
1750
1500
1250
1000
750
500
250
0
1999
2000
2001
2002
2003
2004
2005
2006
producing
under construction
02 sanctions
pre-sanction engineering
BP forecast 2002 - 06
source BP data
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the deepwater prize
NW Europe
Mediterranean
Gulf of Mexico
Asia Pacific
W. Africa
Oil
Gas
S.America
Source WoodMacKenzie Global Deepwater Markets
June 2000 Global distribution of volumes
discovered in deepwater (500m) drilling to 2000
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new project production (as of Feb 01)
Production (mboed)
1400
1200
1000
800
600
400
200
0
'99
'00
'01
'02
'03
'04
'05
RoW
North Sea / Alaska
Source BP Data BP forecast 2002-2005
Trinidad
Deepwater
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oil cost of supply
Cumulative production increase 2000-2010 mil bbl/d
14
Canada
Heavy
12
Venezuela
OPEC
Heavy
Mexico
10
Other
Kazakhstan
FSU
Venezuela
Azerbaijan
UAE
Nigeria
8
Angola
Brazil
Cost of Supply /bbl
Libya
6
S.Arabia
Iran
New
Iraq
Saudi
Kuwait
4
Arabia
Shut-In
2
0
0
2
4
6
8
10
12
14
16
18
includes F,D L,
All figures are estimates Source BP internal data
transport and Brent discount
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Angola an exciting deepwater future

• Deepwater oil resources
• Under development 1.3 bn
• Discovered 7 8 bn
• Yet to find 7 12 bn?
• Total 15 20 bn

Production potential
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NPV10 ( per bbl)
Contractor group take Government take
Full Cycle, Model Woodmac GEM As of 2001
Net Present Value discounted at 10
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BP in Angola deepwater blocks

• Block 15
• 26.67 interest
• Exxon/Mobil operator
• Area 4,200 km2
• 12 discoveries
• Kizomba development in execution

• Block 31
• 26.67 interestand operator
• Area 5,349 km2
• Water depth1500-2800m
• PSA signed May 1999
• First well in 2001

2000m
1000m
14
15
15
1
31
2
16
3
32
17
4
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• Block 17
• 16.67 interest
• TFE operator
• Area 5,000 km2
• Girassol development
• 11 additional discoveries
• First oil achieved 2001

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18
33
5

• Block 18
• 50 interest operator
• Area 4,850 km2
• 5,000 km2
• 3D 1996-97
• 6 discoveries

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19
6
20
7
21
8
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Block 18 overview

• Water depths between ca 1,200 1,500 metres
• 6 discoveries
• Distances determine the development economics
• Significant range of concepts evaluated across
  single and multiple fields
• Greater Plutonio is first development

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Block 18 Greater Plutonio

• Selected development concept comprises
• single, large FPSO
• subsea wells across multiple fields
• extensive seabed flowline system
• Front End Engineering (FEED) in 1Q02
• Development offers infrastructure opportunity for
  future Block 18 exploration potential

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GoM learnings applied to Angola

• Drilling completion design for depths exceeding
  1,500 metres sand control in poorly consolidated
  reservoirs
• State-of-the-art processing of 3-D data
• 'Intelligent well systems' which transmit data
  and enable us to make better reservoir management
  decisions
• Riser technology
• Moorings
• Sub-sea systems

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Greater Plutonio implementation

• Long distance tiebacks(lay costs, insulation
  systems)
• Flow assurance (slug management, hydrates,
  operability)
• Well and subsea reliability (well sand control,
  subsea equipment)
• Riser systems (maturity, operability, cost)
• Environmental focus targets for CO2 emissions
  (flaring) and drill cuttings

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technology seismic interpretation
Angola - Spectral decomposition
Conventional image
Spectral decomposition image
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balancing costs and margins
16 bbl
30 bbl
35
Contractor take Government take
Opex Capex
30
25
20
15
10
5
0
Full Cycle, Model Woodmac GEM As of 2001
NOR
BRA
NIG
ANG
AZ
GOM
UK
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conclusions

• Angola fits within BPs upstream growth strategy
• Deepwater Angola - A world class producer,
  sustainable and long-term future for BP -
  Portfolio uniquely positioned interest in all
  the key offshore blocks
• Implementation with best practice
• Application of technology from GoM Deepwater
  operator experience
• cornerstone of the growth agenda

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Qs and As
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(No Transcript)
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BACK UP
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building an Angolan organisation

• Build Angolan business, run by Angolans
• Initiatives to recruit, train and develop local
  staff
• Economic participation
• Foster capacity building, civil society and
  industrialdevelopment
• Sustainable social projects led by Angolans