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ANGOLA OIL AND GAS INDUSTRYANGOLA OIL AND GAS INDUSTRYUPSTREAM ACTIVITYUPSTREAM ACTIVITY

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INDEXINDEX

1.1. GENERAL INFORMATIONGENERAL INFORMATION

2. PETROLEUM ACTIVITIES IN ANGOLA2. PETROLEUM ACTIVITIES IN ANGOLA

3. MAIN LAWS AND REGULATIONS3. MAIN LAWS AND REGULATIONS

4. MAJOR PROJECTS IN PROGRESS4. MAJOR PROJECTS IN PROGRESS

5. BUSINESS OPPORTUNITIES5. BUSINESS OPPORTUNITIES

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CONGOCONGODEMOCRATIC DEMOCRATIC REPUBLIC OF REPUBLIC OF CONGO (ZAIRE)CONGO (ZAIRE)ATLANTIC OCEANATLANTIC OCEANZAMBIAZAMBIANAMIBIANAMIBIA

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1. GENERAL INFORMATION1. GENERAL INFORMATION

OFFICIAL NAME: REPUBLIC OF ANGOLAOFFICIAL NAME: REPUBLIC OF ANGOLA

CAPITAL: LUANDACAPITAL: LUANDA

NATIONAL DAY: November 11th, 1975NATIONAL DAY: November 11th, 1975

GEOGRAPHICAL AREA: 1.246.700 KmGEOGRAPHICAL AREA: 1.246.700 Km22

POPULATION: POPULATION: ±±18.5 MILLION18.5 MILLION

OFFICIAL LANGUAGE: PORTUGUESEOFFICIAL LANGUAGE: PORTUGUESE

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OIL AND GAS OIL AND GAS –– GENERAL INFORMATIONGENERAL INFORMATION

OIL RESERVES: 12.6 BILLION BARRELS (proven and OIL RESERVES: 12.6 BILLION BARRELS (proven and probable reserves)probable reserves)

CURRENT PRODUCTION CAPACITY: MORE THAN CURRENT PRODUCTION CAPACITY: MORE THAN 1,900 THOUSAND PER DAY.1,900 THOUSAND PER DAY.

REFINING CAPACITY: 37,000 BARRELS PER DAY.REFINING CAPACITY: 37,000 BARRELS PER DAY. GAS RESERVES: 12,000 MM CUBIC FEETGAS RESERVES: 12,000 MM CUBIC FEET MAJOR FIELDS OF OIL AND GAS: BLOCKS 0, 14, 15, MAJOR FIELDS OF OIL AND GAS: BLOCKS 0, 14, 15,

17, 18.17, 18. EXPORT TERMINALS: MALONGO, KIZOMBA A/B/C, EXPORT TERMINALS: MALONGO, KIZOMBA A/B/C,

GIRASSOL/DGIRASSOL/DÁÁLIA E GRANDE PLUTLIA E GRANDE PLUTÓÓNIO. NIO.

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2. PETROLEUM ACTIVITY IN ANGOLA Although the prospecting and research activities of hydrocarbonsAlthough the prospecting and research activities of hydrocarbons

in Angola have begun in 1910 when the Company Canha & in Angola have begun in 1910 when the Company Canha & Formigal started operating in an area of 114,000 square km of Formigal started operating in an area of 114,000 square km of CongoCongo’’s offshore and Kwanzas offshore and Kwanza’’s Basin, the first commercial s Basin, the first commercial discovery happened in 1955 in the field of Benfica, by the discovery happened in 1955 in the field of Benfica, by the company Petrangol, with production starting in the following yeacompany Petrangol, with production starting in the following year.r.

In 1957, Gulf Oil Company, under the name of Cabinda Gulf Oil In 1957, Gulf Oil Company, under the name of Cabinda Gulf Oil Company (Cabgoc) starts its operations in CabindaCompany (Cabgoc) starts its operations in Cabinda’’s offshore.s offshore.

In 1968 Angola was already producing 49,000 barrels per day, In 1968 Angola was already producing 49,000 barrels per day, increasing in 1973 to 163,000 barrels per day, thus becoming theincreasing in 1973 to 163,000 barrels per day, thus becoming theprincipal export material. In 1974 was reached the record of principal export material. In 1974 was reached the record of colonial production of 172,000 barrels per day.colonial production of 172,000 barrels per day.

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In 1976, the National Oil Company of Angola In 1976, the National Oil Company of Angola –– Sonangol Sonangol –– was created, and in 1979 was created the Ministry of was created, and in 1979 was created the Ministry of Petroleum.Petroleum.

That same year, was published the Law 13/78 that That same year, was published the Law 13/78 that ended the existence of various small enterprises and ended the existence of various small enterprises and established the beginning of Sonangolestablished the beginning of Sonangol’’s activity as the s activity as the exclusive concessionaire of oil industry in Angola.exclusive concessionaire of oil industry in Angola.

The reorganization of the sector with the framework of The reorganization of the sector with the framework of the new Petroleum Activities Law and the Tax and the new Petroleum Activities Law and the Tax and Customs regimes in 1994, attracted significant Customs regimes in 1994, attracted significant investments from foreign multinational companies, investments from foreign multinational companies, contributing to the significant increase in production.contributing to the significant increase in production.

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The oil industry in Angola noted an unprecedented The oil industry in Angola noted an unprecedented dynamic in Africadynamic in Africa’’s west coast, becoming a world s west coast, becoming a world reference in the development and production of oil fields reference in the development and production of oil fields in deep water.in deep water.

2007 2008 2009 20102011

(PREV.)

CRUDE OIL PRODUCTION (thousand barrels) 619.800 695.700 660.273 641.524 606.947AVERAGE DAILY PRODUCTION (thousand

barrels) 1.697 1.900 1.800 1.757 1.666

CRUDE OIL EXPORT (thousand barrels) 605.500 675.000 646.938 624.401 586.382

LPG PRODUCTION (thousand barrels) 7.920 7.699 7.243 7.749 6.644

REFINERY LUANDA PRODUCTION (thousand Ton: Met.) 1.813 1.774 1.767 1.481 1.954

INVESTIMENTS (MM USD) 10.843 12.935 16.468 17.400 18.300WORK FORCE 55.510 64.808 64.677 71.115 72.000

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PartnersPartners

OperatorsOperators

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In 2007, Angola became a full member of the Oil Export In 2007, Angola became a full member of the Oil Export Countries Organization Countries Organization –– OPEP, having assumed the OPEP, having assumed the presidency of this organization in 2009.presidency of this organization in 2009.

AngolaAngola’’s s current oil production capacity is over 1.9 million current oil production capacity is over 1.9 million barrels per day, but considering OPEPbarrels per day, but considering OPEP’’s share, Angola s share, Angola produces about produces about 1.71.7 million barrels a daymillion barrels a day

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3. MAIN LAWS AND REGULATIONS3. MAIN LAWS AND REGULATIONS

LAW nLAW nºº 10/04, 1210/04, 12THTH NOVEMBER,NOVEMBER, Petroleum Activity Law.Petroleum Activity Law.

LAW nLAW nºº.11/04, 12.11/04, 12THTH NOVEMBER, Customs Regime applicable to the NOVEMBER, Customs Regime applicable to the Petroleum Sector.Petroleum Sector.

LAW nLAW nºº 13/04, 2413/04, 24THTH DECEMBER, Law on the Petroleum activities Tax.DECEMBER, Law on the Petroleum activities Tax.

DECREE NDECREE Nºº 39/00 39/00 –– Decree regulating the Enviromental Protection in Decree regulating the Enviromental Protection in the course of petroleum activities.the course of petroleum activities.

LAW 5/98, June, 1998, Enviroment Law.LAW 5/98, June, 1998, Enviroment Law.

DECREE 17/09, 26DECREE 17/09, 26THTH JUNE, Decree regulating the recruitment and JUNE, Decree regulating the recruitment and development of the workforce in petroleum activities.development of the workforce in petroleum activities.

OIL MINISTRY

MAIN LAWS AND REGULATIONS (cont.)MAIN LAWS AND REGULATIONS (cont.)

Under the law, the association may take the following Under the law, the association may take the following forms:forms:

-- Commercial SocietyCommercial Society

-- Consortium AgreementConsortium Agreement

-- Production Sharing Contract (PSC)Production Sharing Contract (PSC)

-- Risk Services Agreement (RSA)Risk Services Agreement (RSA)

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4. MAJOR PROJECTS IN PROGRESS:4. MAJOR PROJECTS IN PROGRESS: DEVELOPMENT OF RECENT DISCOVERIES:DEVELOPMENT OF RECENT DISCOVERIES:

Sanha Sanha –– Block 0Block 0BBLT BLOCK 14BBLT BLOCK 14Kizomba A, B, Kizomba A, B, -- Block 15Block 15Dalia & Rosa Dalia & Rosa –– Block 17Block 17PazFlor PazFlor –– Bloco 17Bloco 17Greater PlutGreater Plutóónio nio –– Block 18Block 18Polo PSVM Polo PSVM –– Bloco 31 Bloco 31 PrePre--salt Blockssalt Blocks

Lobito Lobito –– New Refinery ProjectNew Refinery Project

Soyo Soyo –– Refinery ProjectRefinery Project

SonagSonagáás s –– Angola LNGAngola LNG

Renewable Energy Renewable Energy -- BiofuelsBiofuels

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ANGOLA LNG PROJECTANGOLA LNG PROJECT::

IS UNDER EXECUTION, HAVING SONANGOL AS IS UNDER EXECUTION, HAVING SONANGOL AS INVESTOR WITH 22,8% OF PARTICIPATION AND INVESTOR WITH 22,8% OF PARTICIPATION AND TOTAL, BP, CHEVRON AND ENITOTAL, BP, CHEVRON AND ENI WITH THE WITH THE REMAINING PERCENTAGE.REMAINING PERCENTAGE.

THE FACTORY WILL HAVE A PROCESSING THE FACTORY WILL HAVE A PROCESSING CAPACITY OF 5 MILLION TONS PER YEAR, CAPACITY OF 5 MILLION TONS PER YEAR, PREDICTING THE START OF PRODUCTION FOR PREDICTING THE START OF PRODUCTION FOR THE 2THE 2NDND HALF OF 2012.HALF OF 2012.

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5. BUSINESS OPPORTUNITIES5. BUSINESS OPPORTUNITIES::

5.1. 5.1. Exploration and ProductionExploration and Production

5.2. Refining and Petrochemicals

5.3. Industry

5.4. Infrastructure support Construction

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THANK YOUTHANK YOU

OIL MINISTRY