1. Área de serviço REVENUE MONITORING AND REPORTING Audit procedures and internal and external reporting of revenues Luanda, 16 of May 2006 Luís Alves – Audit Manager

2. Área de serviço BACKGROUND AUDIT PERFORMED ON A YEARLY BASIS AWARD OF CONTRACT TO DELOITTE BY MEANS OF AN INTERNATIONAL BIDDING SOME FIGURES: - AUDIT OF 100 TAX RETURNS APPROXIMATELY; - 27 BLOCKS: - 3 CONCESSIONED BLOCKS (ALL IN PRODUCTION PHASE)); - 24 PRODUCTION SHARED BLOCKS OF WHICH: - 8 WITH PRODUCTION; - 16 WITHOUT PRODUCTION

3. Área de serviço STRATEGICAL OBJECTIVES TO ATTAIN REINFORCEMENT OF TAXATION CAPABILITY OF THE OIL COMPANIES OPERATING IN ANGOLA ASSISTANCE TO THE MINISTRY OF FINANCE OF ANGOLA KNOW-HOW TRANSFER AND METHODOLOGIES TO MINFIN TECHNICAL STAFF

4. Área de serviço NATURE OF THE WORK TRAINING OF MINFIN TECHNICAL STAFF AUDIT OF THE OIL COMPANIES ACCOUNTS STATISTICAL COMPILATION AUDIT OF THE OIL COMPANIES TAX RETURNS RECOMENDATIONS

5. Área de serviço Confirmation that the books and accounting records are maintained adequately and verification that they are in accordance with the Law 1. AUDIT OF THE ACCOUNTS Verification of the correct cost accounting in accordance with applicable law Main goals Verification of the crude oil sold valuation criteria followed by the Oil Companies and its adherence with applicable law

6. Área de serviço 2. REVISION OF THE TAX RETURNS SUBMITTED BY THE OIL COMPANIES Main goals Verification of the correct filling of the tax returns considering the applicable tax regime Verification of the correct calculus and payment of taxes to which the companies are subject to Verification of the adopted criteria to valuate crude oil Verification that the costs were accounted according to applicable legislation Verification of witholding tax obligations

7. Área de serviço 3. OUTPUT OF THE WORK Main goals Decisions at Fixation Committee level of Petroleum Income Tax with relation to: Possible corrections to taxable income; Determination of accumulated recoverable costs available to carryforward; Determination of costs not fiscally deductable in each year; Decisions at “Direcção Nacional de Impostos” level regarding additional tax settlements concerning withholding tax, personal income tax and capital income tax. Issue of reports allowing:

8. Área de serviço 4. TRAINING PLAN Main goals Know-how transfer to MINFIN technical staff Methodologies development (audit and tax revision) Implementation of efficient and modern tools (prevention and tax control)

9. Área de serviço 5. STATÍSTICAL COMPILATION OF REVENUES AND LOSSES ACCOUNTS PER COMPANY Methodology Approach by Development and Concession areas Accumulated approach and by Province

10. Área de serviço 6. RECOMENDATIONS Main goals Study and recommendation of actions, including changes in legislation Analysis and recommendation of control mechanisms which could be implemented in order to maximize the tax efficiency

11. Área de serviço 7. KEY ISSUES Full revenue capture; Eligibility of cost at contract level (approval National Concessionary); Costs essential to oil operations; Cut-off; Adequate support documentation; Bonuses calculation (uplift); Mechanics of cost oil determination