BP starts production from new Valhall platform in Norwegian North Sea

BP today announced the successful start-up of oil production from new facilities at the Valhall field in the southern part of the Norwegian North Sea. Production started on 26 January.

“The Valhall Re-Development Project is another significant milestone for BP and is an important investment in our North Sea portfolio,” said Bob Dudley, BP group chief executive. “It is one of BP’s most complex field expansion developments and gives Valhall a further 40-year design life with the capacity to handle 120,000 barrels of oil and 143 million cubic feet of gas per day.”

Production from Valhall is expected to build up to around 65,000 barrels of oil equivalent per day in the second half of 2013. The redevelopment includes a new production, utilities and accommodation platform mounted on a fixed steel jacket, an external system of bridges and walkways linking the new platform to the existing Valhall complex, a power-from-shore system, and an integrated operating environment linking onshore and offshore personnel.

Rebecca Wiles, BP Norway managing director, said: “The re-development of this giant field over the past few years underpins a long future for Valhall. It is a further demonstration of our commitment to our business here in Norway.”

Valhall is now 100 per cent powered from shore, via a 294-kilometre direct-current cable from Lista – the first field offshore Norway and within BP to use such a power-from-shore system. This will make direct emissions to air from the Valhall field close to zero.

Including the new platform, the Valhall field complex now has six separate manned platforms: quarters; drilling; production; wellheads; water injection; and the new combined process and hotel platform. In addition it has two unmanned flank platforms, each approximately six kilometres from the main facilities.

Discovered in 1975, first production from the Valhall field came in 1982. The redevelopment project is expected to extend production from the field to 2050.

BP Norway is the operator of Valhall with a 35.9 per cent interest. Hess Norge owns the remaining 64.1 per cent.

Further information

Contacts

BP press office, London, +44 (0)20 7496 4076, bppress@bp.com

BP press office, Stavanger, +47 5201 3205, jan-erik.geirmo@no.bp.com

Notes to editors

Key components of the Valhall Re-Development Project

• Production, Utilities & Accommodation (also referred to as Process/Hotel Platform (PH)) mounted on a fixed steel jacket
• An external system of bridges and walkways, containing all essential utilities/process piping, linking PH to the existing complex
• Pipeline (subsea) crossovers to/from new PH platform
• Power from shore system
• Integrated operating environment linking onshore and offshore personnel

Facts about the new combined production and hotel platform

• New facility design life: 40 years
• Accommodation: 180 single bed cabins
• Oil production capacity: 120,000 bpd
• Gas handling capacity: 143 mmscf/d
• Topsides (dry) weight: 18,500 tonnes
• Jacket substructure: 8,400 tonnes
• Power from shore: 294 km direct-current cable from southern Norway

BP in Norway

• BP has been in Norway since 1920
• BP Norway has 11 licences and is operator for all. The fields currently in production and operated by BP Norway are Valhall, Hod, Ula, Tambar and Skarv
• A new projects organisation is being established in Stavanger to develop capability in BP Norway to service future projects from the Valhall, Ula and Skarv hubs through to 2050
• BP expects to invest $10 billion (£6.7billion) net over the next five years in Norway and UKi

Cautionary Statement

This press release contains certain forward-looking statements with respect to certain operations of BP and certain of the plans and objectives of BP with respect to these items. These statements generally, but not always, are identified by the use of words such as “will”, “expected to”, “is intended to”, “projected” or similar expressions. In particular, these include certain statements regarding: the expected life and capacity of the Valhall field complex in the future; the expected level of production at Valhall in 2013; and the expected future level of direct emissions to air from the Valhall field. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors including future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners, creditors, rating agencies and others; environmental conditions, natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism or sabotage; and other factors discussed under “Principal risks and uncertainties” in our Stock Exchange Announcement for the period ended 30 June 2012 and under “Risk factors” in our Annual Report and Form 20-F 2011 as filed with the US Securities and Exchange Commission.