Building local economic capacity

A key part of BP’s strategy to build a safe and reliable, high-performing business in Angola is to enhance the capability of local companies and help create opportunities for future investment in the local oil industry. 
We aim, therefore, to maximize local content in our operations and projects. Developing the capability of our Angolan staff and local companies drives job creation, economic growth and contributes to infrastructure development throughout the country.
Provisions within the production sharing agreement (PSA) seek to ensure that the social and economic benefits arising from our activities are shared for the country’s good. For example, in conducting our operations, we have a requirement in the PSA to give preferential treatment in certain circumstances to local labour and to the acquisition of nationally-produced goods, machinery and equipment. In taking this approach, the PSA seeks to support local economic development while adhering to the standards of the international petroleum industry.

In 2013, BP Angola spent approximately $565 million with local suppliers, in the following market sectors: 
• Pipelines (Sonaid).
• Aviation (Sonair).
• Marine (Sonatide Marine Ltd and Sonasurf Internacional Shipping Lda).
• Marine fuel (Sonangol Distribuidora).
• Pipelines, engineering and sub-sea equipment (Angoflex Lda).
• Engineering Services (Petromar).
• Logistics (Sonils Limited).

Providing content from local suppliers was an important feature of the PSVM project. PSVM work contracted to Angola-based companies includes the fabrication of pipelines, manifolds, jumpers, buoyancy tanks, umbilicals and wellheads, to mention just a few examples. This required a significant investment in building local capability, creating jobs and contributing to the economic development in Angola.