BP to invest $8 billion in Angola oil sector over next six years

The Associated Press

U.K. energy group BP PLC intends to invest $8 billion in Angola's oil sector over the next six years, BP chief executive Lord John Browne said Oct. 6.

Browne met with Angola President Jose Eduardo dos Santos to discuss BP's plans in Angola where the government, through state oil company Sonangol, awards exploration rights. BP has interests in four offshore blocs.

Browne told reporters BP intends to train at least 700 Angolans to work in the oil and gas sectors.

Angola is sub-Saharan Africa's second-largest oil producer after Nigeria, with most of its production offshore.

It currently produces about 900,000 barrels per day and the government has predicted output could rise to 1.6 million bpd by 2005.

U.S. companies ChevronTexaco and ExxonMobil, as well as European competitors BP and Total SA, are among the energy companies pumping or exploring for oil in the country.

Oil sales generate 90 percent of Angola's hard currency. During the two-decade war against Unita, which ended last year, oil revenue provided funding for the government's war effort.

Human rights groups have alleged much of the state's oil revenue is pocketed by corrupt officials. The government denies that.