Chirag Achieves 300 Million Barrels Production Milestone

24 June 2005

The Azerbaijan International Operating Company (AIOC) is pleased to announce that this month it reached the 300 million barrels production milestone within the Early Oil Project (EOP). This is a significant achievement, which reflects remarkable oil production performance as Chirag has operated with very few interruptions since the commencement of development drilling and first oil production in 1997.

Dave Lachance, BP’s Chirag/DWG Asset Manager, stated: “This is another outstanding accomplishment for Chirag and recognition that Chirag continues to perform as a world-class facility. Surpassing the milestone is mainly due to the exceptional teamwork of all people who have worked together on the field, past and present, in the drilling, operations, and reservoir teams. Chirag platform employs 250 people of whom over 85% are Azerbaijan nationals. I congratulate them all on another world-class achievement.” 

The production is processed at the Sangachal Terminal which has maintained an operating efficiency of near 100%. This has enabled the Chirag Platform to continue production with virtually no interruption. Douglas Fehr, Sangachal Terminal Asset Manager says: “I am very proud of this remarkable achievement jointly delivered by the Chirag and Sangachal Teams and the tremendous communication and cooperation between these assets. I am also proud that all this has been achieved by our truly international team at Sangachal of whom over 80% are highly-qualified Azerbaijan nationals.” 
The Chirag platform currently has 19 wells, of which 11 are active producing wells and 5 are active water injection wells. Water injection commenced in recently sidetracked well A-02z the fifth injector. This additional water injection will help support the overall reservoir management plan of continuous water injection into Chirag. Three remaining wells are waiting for well intervention or sidetracking activities due to occur in the future. Drilling operations are planned to commence on a new producing well A-20 in late July.

Since the beginning of this year the production activities on Chirag have continued in accordance with the plan for 2005 with an operating efficiency exceeding 96%. During 2005, it is expected that Chirag will have an average production rate in excess of 134,000 barrels per day.

Notes to Editors:

The Chirag Platform is located in the Azerbaijan sector of Caspian Sea, 120 km to the east of Baku (and 160 km from the Sangachal Terminal) in a water depth of 120 m.

Development drilling from the platform commenced on August 12 1997 and first oil from the EOP was achieved on November 7, 1997. First Oil produced from the Chirag platform was officially celebrated on the platform on November 12, 1997. 



Further information:
Tamam Bayatly at BP’s Press Office in Baku, telephone: 994 (0) 12 599 4557