BP Receives Authorization For Greater Plutonio

BP Angola Block
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Sociedade Nacional de Combustíveis de Angola (Sonangol), Angola's state owned oil company, has authorized BP to proceed with the awarding of major contracts for the development of Greater Plutonio.

The project to develop six fields will be the first development in Angola's Block 18 and the first BP-operated project in Angola. The fields Galio, Cromio, Paladio, Plutonio, Cobalto and Platina, collectively known as Greater Plutonio, are located in water depths of 1,200 to 1,500 meters.

The development will consist of a single spread-moored floating, production, storage and offloading (FPSO) vessel linked by risers to a network of subsea flowlines, manifolds and wells.

Following authorization to proceed, BP has awarded two of the major contracts for the development.

The contract for engineering, procurement, construction & management (EPCM) went to Kellogg Brown & Root. The project team will be based at Kellogg Brown Root's offices in Leatherhead, UK.

The contract to fabricate the FPSO hull and topside equipment was awarded to Hyundai Heavy Industries. The vessel will be built in the Ulsan shipyard, Korea.

Contracts for the subsea production system and umbilicals, risers and flowlines will be awarded in the next few weeks. The integrated drilling contract will be awarded later in 2004. First production is targeted for 2007.

Tony Hayward BP's Chief Executive, exploration and production said: "This is a major milestone for BP in its plans to build a new profit centre in Angola. BP's net production from Angola will rise from 50,000 barrels a day in 2004 to approximately 250,000 barrels a day by 2007."

Jose Patricio, Executive Vice President, BP Angola stated: "Approval to proceed with Greater Plutonio will bring substantial, long term, benefit to Angola, as well developing BP Angola into an Angolan business run by Angolans. Other national companies will also benefit through service contracts and local content of construction contracts. This is also a great opportunity for BP to build a distinctive company in Angola in line with BP's ethical and environmental standards."

BP has a 50 percent interest in Block 18, which was acquired by Amoco in 1996, prior to its merger with BP. The other 50 percent is held by Shell. The block has an area of approximately 5,000 sq km, and water depths vary from 500 meters to 1,600 meters.

BP has license interests in a number of blocks in Angola. As well is being operator of Block 18 and Block 31 (26.67 percent) BP is also a non operating partner in Blocks 15 (26.67 percent), Block 17 (16.67 percent) and Angola LNG (13.64 percent).

Revenue from oil production will be shared by partners and Sonangol through a Production Sharing Agreement (PSA).

The six fields, Plutonio, Galio, Paladio, Cromio, Cobalto and Platina, were all discovered between 1999 and 2001.

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