Tuesday, April 30, 2013

BP Profits

Angola is one of BP’s four most lucrative “high-margin” regions that contribute a disproportionately high share of its profits. Generous contracts give BP an operating cashflow margin in Angola of almost $60 a barrel, according to Deutsche Bank – more than double BP’s global average. After costs, BP can expect about $40 profit for each barrel it produces in Angola, compared with as little as $1 elsewhere.


Angola is Africa’s second biggest oil producer, with oil accounting for about three-quarters of government revenues. But, as the US Energy Information Administration notes, “much of the oil wealth in the country does not find its way to the average citizen”.

36% of the population live below the poverty line and a short distance from BP’s offices in Luanda, barefooted children pick through mountains of rubbish in the slums. Angola consistently ranks as one of the world’s most corrupt countries

No comments: