BP (BP)

Africa

        Algeria

—

BP, through its joint operatorship of In Salah Gas with Statoil and the Algerian state company, Sonatrach, completed the development of the In Salah project (BP 33.15%). This first stage comprised the development of three of the seven deep Saharan natural gas fields expected to supply the fast-growing markets of Southern Europe. In Salah commenced commercial production on July 18, 2004, and produced a total of 105 billion cubic feet (bcf) (Gross) of which BP's net share was 26 bcf.



—

BP, through its joint operatorship of In Amenas with Statoil and Sonatrach, continued to progress the development of the In Amenas project (BP 50% before production, 12.5% after start of production) with production expected to start in early 2006.

37

        Angola

        BP has interests in four deepwater licence blocks, including two of which it is operator. We have built a strong foundation for long-term growth in Angola through both exploration and development.

        Activities in 2004 included the following:

—

In Block 15 (BP 26.7%), Kizomba A commenced production in the third quarter of 2004. Development activities progressed on Kizomba B, with production expected to commence in the second half of 2005.



—

In Block 17 (BP 16.7%), development activities progressed on the Dalia project in line with expectations to commence production in the second half of 2006. The Rosa project, a tie-back to Girassol hub, commenced development in the third quarter of 2004.



—

In Block 18 (BP 50% and operator), work has continued on the Greater Plutonio development in line with expectations to commence production in 2007. At the end of 2004, Shell assigned its 50% equity share in the project to Sonangol.



—

In Block 31 (BP 26.7% and operator), we had made four discoveries by the end of 2004 which are at various stages of assessment of commercial viability. A further two discoveries were announced in 2005.

        Egypt

—

In Egypt, the Gulf of Suez Petroleum Company (GUPCO), a joint venture operating company between BP and the Egyptian General Petroleum Corporation, carries out our oil production operations. GUPCO operates eight PSAs in the Gulf of Suez and Western Desert encompassing more than forty fields.



—

During 2004, BP Egypt and upstream partner IEOC, a subsidiary of Italy's ENI, signed agreements with the Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS), to deliver up to 310 mmscf/d of natural gas to the Damietta LNG plant starting from 2008. In parallel, BP's Gas, Power and Renewables business has signed an agreement with EGAS, to purchase 1.45 billion cubic metres a year (bcma) of LNG from 2005, when the Damietta LNG plant is expected to start commercial production. This deal marks the first BP integrated gas supply and LNG purchase agreement.



—

During the third quarter of 2004 there was a blow out and subsequent fire on the partner-operated Temsah North West platform (BP 50%). Drilling of relief wells was successfully carried out by the operator resulting in the extinguishing of all the ignited wells at the end of October. Plans for the redevelopment of Temsah North West through a replacement platform and facilities are progressing.



—

During the third quarter of 2004, BP successfully completed the disposal of the Offshore North Sinai concession.



—

In May 2005, BP and the Egyptian Ministry of Petroleum signed agreements to extend the Merged Concession Agreement by 20 years and the South Gharib concession by 10 years from the date of signing. These concessions represent approximately 80% of BP's oil business in Egypt. These agreements will allow the maximization of the recovery of remaining reserves and provide for growth through future exploration activity.

38

Africa

        Algeria

—

BP, through its joint operatorship of In Salah Gas with Statoil and the Algerian state company, Sonatrach, completed the development of the In Salah project (BP 33.15%). This first stage comprised the development of three of the seven deep Saharan natural gas fields expected to supply the fast-growing markets of Southern Europe. In Salah commenced commercial production on July 18, 2004, and produced a total of 105 billion cubic feet (bcf) (Gross) of which BP's net share was 26 bcf.



—

BP, through its joint operatorship of In Amenas with Statoil and Sonatrach, continued to progress the development of the In Amenas project (BP 50% before production, 12.5% after start of production) with production expected to start in early 2006.

36

        Angola

        BP has interests in four deepwater licence blocks, including two of which it is operator. We have built a strong foundation for long-term growth in Angola through both exploration and development.

        Activities in 2004 included the following:

—

In Block 15 (BP 26.7%), Kizomba A commenced production in the third quarter of 2004. Development activities progressed on Kizomba B, with production expected to commence in the second half of 2005.



—

In Block 17 (BP 16.7%), development activities progressed on the Dalia project in line with expectations to commence production in the second half of 2006. The Rosa project, a tie-back to Girassol hub, commenced development in the third quarter of 2004.



—

In Block 18 (BP 50% and operator), work has continued on the Greater Plutonio development in line with expectations to commence production in 2007. At the end of 2004, Shell assigned its 50% equity share in the project to Sonangol.



—

In Block 31 (BP 26.7% and operator), we had made four discoveries by the end of 2004 which are at various stages of assessment of commercial viability. A further two discoveries were announced in 2005.

        Egypt

—

In Egypt, the Gulf of Suez Petroleum Company (GUPCO), a joint venture operating company between BP and the Egyptian General Petroleum Corporation, carries out our oil production operations. GUPCO operates eight PSAs in the Gulf of Suez and Western Desert encompassing more than forty fields.



—

During 2004, BP Egypt and upstream partner IEOC, a subsidiary of Italy's ENI, signed agreements with the Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS), to deliver up to 310 mmscf/d of natural gas to the Damietta LNG plant starting from 2008. In parallel, BP's Gas, Power and Renewables business has signed an agreement with EGAS, to purchase 1.45 billion cubic metres a year (bcma) of LNG from 2005, when the Damietta LNG plant is expected to start commercial production. This deal marks the first BP integrated gas supply and LNG purchase agreement.



—

During the third quarter of 2004 there was a blow out and subsequent fire on the partner-operated Temsah North West platform (BP 50%). Drilling of relief wells was successfully carried out by the operator resulting in the extinguishing of all the ignited wells at the end of October. Plans for the redevelopment of Temsah North West through a replacement platform and facilities are progressing.



—

During the third quarter of 2004, BP successfully completed the disposal of the Offshore North Sinai concession.



—

In May 2005, BP and the Egyptian Ministry of Petroleum signed agreements to extend the Merged Concession Agreement by 20 years and the South Gharib concession by 10 years from the date of signing. These concessions represent approximately 80% of BP's oil business in Egypt. These agreements will allow the maximization of the recovery of remaining reserves and provide for growth through future exploration activity.

37