First Clair Ridge topside modules safely installed west of Shetland

BP and its co-venturers, ConocoPhillips, Chevron and Shell, are pleased to confirm the safe installation of the new Clair Ridge platform’s quarters and utilities (QU) topside modules, a major milestone in the Clair Ridge project.

The QU platform comprises three modules – the quarters and utilities integrated deck (QUID) which has a lift weight of 9,400te; the power generation (GM) module which has a lift weight of 4,550te; and the living quarters (LQ) module which has a lift weight of 2,210te. They were safely lifted onto the pre-installed jackets by the Heerema Thialf heavy lift vessel.

The hook up and commissioning of these modules has created over 600 jobs, including six electrical apprentices, all of which have recently been recruited through Amec Foster Wheeler.

Clair Ridge is a multi-billion investment in the second phase of development on the Clair field which lies 75km to the west of the Shetland Islands. The project comprises two new bridge-linked platforms and new pipeline infrastructure to connect storage and redelivery facilities on Shetland. The next major milestone will be the installation of the production and drilling (DP) platform topside modules, scheduled for summer 2016, with production expected to commence in late 2017.

Trevor Garlick, Regional President for BP’s North Sea business said: “The safe installation of these three topside modules is a fantastic achievement by the project team. In a challenging time for the industry, this project shows the potential of our basin and why it is so important that we work to ensure a competitive future business.”

Approximately half of the Clair Ridge investment is occurring in the UK, with over 80 British companies providing engineering design and support service, hook-up and installation services, manpower and a wide range of engineered equipment.

The Clair Ridge development will have the capability to produce an estimated 640 million barrels of oil over a 40 year period, with peak production expected to be up to 120,000 barrels of oil per day.

Clair Ridge is the first sanctioned large-scale offshore enhanced oil recovery (EOR) scheme using reduced salinity water injection (LoSal® EOR) to extract a higher proportion of oil over the life of the field. To reduce the environmental impact of the project, the platforms will be powered using dual-fuel power generators, incorporating waste heat recovery technology. Vapour recovery will also be used to capture and recycle low pressure gas for use as fuel or for exporting to shore.

Further information:

Contacts

• BP North Sea press office: 01224 833056 / 07917 307430
• BP London press office: 020 7496 4076

Notes to editors:

BP in the North Sea

• The North Sea is an important region for BP and it expects to sustain a significant business here for the long term.
• Along with its co-venturers, BP is in the middle of a five year, £7 billion investment programme in the North Sea, including major projects in the central North Sea and Shetland area.
• BP is continuing to invest in its major projects west of Shetland, Clair Ridge and Quad 204, both of which will bring important new oil into production. BP is also investing in the reliability and integrity of its mature assets through an extensive renewal programme.
• BP has an active exploration and appraisal programme in the North Sea, and announced in October the Vorlich discovery in the central North Sea.
• BP has so far been awarded seven license blocks across the northern and central North Sea as part of last year’s 28th licensing round.

Clair Ridge

BP Exploration Operating Co 27.6215%

Britoil plc (BP) 0.98%

ConocoPhillips (U.K.) Limited 24.0029%

Chevron North Sea Limited 19.4225%

Enterprise Oil Limited (Shell) 18.6831%

Shell Clair UK Limited (Shell) 9.2900%

• The Clair field was originally discovered in 1977;
• The Clair field is located 75 km west of Shetland and extends over an area of 220km2, in water depths of approximately 140m;
• The first development phase (Clair Phase 1) was sanctioned in 2001. It was developed with a single fixed platform with production and process topsides facilities, supported by a steel jacket and associated oil and gas export facilities;
• Production from the Clair field commenced in February 2005 from the first phase facilities and has so far produced around 80 million barrels. The first phase facilities are designed to continue producing until 2028;
• The second phase of the development - Clair Ridge - is planned to target the part of the field to the north of Clair Phase 1;

• Oil and gas is exported via pipelines to the Sullom Voe terminal on Shetland where it is processed for onward use;
• Total hydrocarbons initially in place across the entire field are estimated at more than 7 billion barrels of oil equivalent, although due to the highly complex and fractured nature of the reservoir, there has been considerable uncertainty as to how much of the oil could be recovered.
• The Clair Ridge facilities are designed to continue producing until 2050.
• The Clair Ridge facilities will consist of two bridge-linked fixed steel jacket platforms and topsides, comprising a drilling and production (DP) platform and a quarters and utilities (QU) platform;
• Around 80% of the estimated £1.1bn of drilling costs will be spent in the UK;
• Following a global competitive tendering process the award for the topside processing modules was made to Hyundai Heavy Industries in Korea;
• LoSal® EOR was developed by BP’s enhanced recovery technology team, known as Pushing Reservoir Limits™, following a decade of laboratory tests at BP’s UK research centre at Sunbury-on-Thames, using sandstone samples from across BP’s global operations. Then, near well-bore single-well tests in several oilfields were performed to prove the technology worked in practice.
• LoSal® EOR is part of BP’s Designer Water® suite of technologies. LoSal and Designer Water are registered trademarks of BP plc., Pushing Reservoir Limits™ is a trade mark of BP plc.

Cautionary statement

This press release contains certain forward-looking statements concerning BP's expectations regarding the Clair Ridge platform, including the estimated level of daily production and total production over the next 40 years, the timing of future additions and installations at the platform and start-up thereof; expectations regarding the use of new technology and the environmental impact thereof; BP’s plans to sustain business in the North Sea in the long-term; plans and expectations regarding BP’s investment programme in the North Sea and its renewal programme for mature assets; expectations regarding the production life of the project, the area targeted by the second phase of the development, estimated reserves and estimated recovery thereof; and expectations regarding the estimated proportion of costs that will be spent in the United Kingdom. Actual results may differ from those expressed in such statements, depending on a variety of factors including changes in public expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under "Risk factors" in our Annual Report and Form 20-F 2014.

This press release contains references to non-proved resources and production outlooks based on non-proved resources that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov