Over medium heat, add oil to a large caldero or dutch oven. (Do not use a non stick pot). Add the sugar to pot and stir for a minute so that the sugar dissolves and turns slightly golden.Note: I know it may seem strange to add sugar to the arroz con pollo but trust me on this step.The sugar helps to bring out the flavors of the chicken into the rice and gives it a nice golden color. Promise you will not taste the sugar!
Add the chicken to the pot except the chicken breast pieces.
Cook chicken for 5-7 minutes on each side. (The chicken will finish cooking in the rice, this step is simply to start the chicken juices flowing and brown pieces a little.
Add the rest of the ingredients to pot with chicken. (Pork fat, sofrito, tomato paste, sazon, chicken bouillon, bay leaf, oregano and olives). With a large spoon, stir well.
While chicken and spices are sauteing, rinse the rice until the water runs clear.
Add rice to pot, water and salt. Raise heat to high.
Cook rice uncovered until water dries out.
After rice has dried out, stir and cover immediately! (have lid beside pot ready to cover or rice will stun and not cook properly).
LOWER heat to medium low.Cook for 15 minutes.
Uncover pot, add chicken breast pieces and stir rice again. Cover immediately!
Cook for another 15 to 20 minutes or until chicken breast pieces are cooked through. Stir again.
Rice is done. Top with red pimientos and fresh cilantro if you like and serve.