The Azerbaijan State News Agency

“DEEPWATER GUNESHLI” ON TARGET TO START PRODUCING IN SECOND QUARTER OF 2008

According to the BP-Azerbaijan, overall Phase 3 (Deepwater Guneshli) construction activities have made very good progress this year. BP is on target to achieve first production in the second quarter of 2008.  This will ultimately raise the Azeri-Chirag-Gunashli offshore facilities’ total oil production capacity to over one million barrels per day.

The latest construction milestone was achieved on July 26 when  the topsides of Phase 3 DUQ platform were safely installed offshore onto the jacket in the Deepwater Gunashli part of the ACG field.  The 15,656 tons topsides sailed away from the Heydar Aliyev Baku Deepwater Jacket Factory fabrication yard on July 25.  The DUQ platform is located at 175 meters water depth on the Deepwater Gunashli field.

The last topsides to be installed for Phase 3 is for the Production, Compression, Water Injection and Utilities (PCWU) platform. The construction of these topsides is now approximately 96% complete and the company plans to install them offshore during September 2007 following full completion of the DUQ topsides installation.

Major progress has been made on subsea installations. This year the company began installing the Phase 3 subsea water injection facilities using the Pacific Askari vessel. The Pasific Askari is currently installing flexible pipelines for the DUQ platform. BP commenced these activities in April this year and to date five sections have already been installed with the remaining six sections to be completed by the end of this year. The company has also recently completed the laying of the 28” gas line and two 30” oil pipelines to connect DWG DUQ platform with the C&WP in Central Azeri. In addition, BP is making progress on the Phase 3 east manifold subsea water injection project, which is designed to inject another 200,000 barrels of water per day into the Deepwater Gunashli reservoir through four subsea wells drilled from a single subsea drilling center.  The engineering and procurement of this manifold is currently 75% complete.

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