Deep Water Gunashli production begins on schedule in the Caspian

22 April 2008

The Azerbaijan International Operating Company (AIOC), operated by BP, today announced the start-up of oil production from the Deep Water Gunashli (DWG) platform complex as scheduled. Start-up of the DWG complex completes the third phase of development of the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea. 

ACG participating interests are: BP (operator – 34.1%), Chevron (10.2%), SOCAR (10%), INPEX (10%), StatoilHydro (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), ITOCHU (3.9%), Hess (2.7%).

The DWG complex is located in a water depth of 175 metres on the east side of the Gunashli field. The complex comprises two platforms – a drilling and production platform bridge linked to a water injection and gas compression platform. 

Production will increase through 2008 as other pre-drilled wells are brought on-stream, prior to commencing platform drilling. On plateau, the DWG complex will produce approximately 320,000 barrels per day, bringing total ACG oil production, including Chirag, East Azeri, West Azeri and Central Azeri, to over 1 million barrels per day. 

“The start up of the DWG complex is an achievement we can all be proud of”, said Bill Schrader, BP’s President in Azerbaijan. “This achievement maintains our track record of on schedule project delivery for the development of the ACG field. I would like to thank the thousands of people, mostly from Azerbaijan, who built the jackets and topsides of this complex, for their dedication and outstanding performance over the past three years. I would also like to congratulate the government, our partners, employees, all the contractors and suppliers for this tremendous achievement” 

Photos available. 
Note to Editors: 
  • •The DWG complex comprises a 48-slot drilling, utilities, and quarters (DUQ) platform and a process, gas compression, water injection and utilities (PCWU) platform. Production export off the complex is via two 30 inch oil pipeline tie-ins and a single 28 inch gas pipeline tie-in into pre-installed pipeline junctions located on the Azeri field subsea export pipelines to the onshore Sangachal Terminal. In addition, uniquely for the ACG project, two subsea water injection manifolds, four water injection supply flowlines, and associated control umbilicals have been installed in the DWG development.
  • •Oil from DWG will be processed in two new oil stabilization process trains at the onshore Sangachal Terminal. Associated gas produced from DWG, less platform fuel needs, will be exported via an existing gas subsea pipeline to the Sangachal Terminal and onward to the Azerigas system for domestic use.
  • •The ACG Production Sharing Agreement (PSA), signed in September 1994, covers the 30 year development of the Azeri-Chirag-Gunashli contract area. The field has been developed in several phases: Chirag has been producing since 1997 as part of the Early Oil Project (EOP). This was followed by Azeri Project Phase 1 - Central Azeri production in early 2005. Successive Phase 2 included West Azeri, which started production in January 2006, and East Azeri, which started production in October 2006. The ACG Phase 3 - Deepwater Gunashli has just started up. Over all production from all phases is expected to be over 1 million barrels per day

For further information please contact:
Tamam Bayatly, BP Baku Press office, telephone:      994 (0) 12 599 4557