BP 2007 Annual Report Download - page 25

Africa
Algeria
– BP, through its joint operatorships of the In Salah Gas (33.15%) and In
Amenas (12.50%) projects, supplied 83bcf (BP net) of gas to markets
in Algeria and southern Europe during 2007, an increase of 33% from
2006 due to the ramp up of In Amenas during 2007. The CO
2
capture
system, part of the In Salah project, is one of the world’s largest CO
2
capture projects.
Angola
– In Angola, BP net production in 2007 was 139mboe/d, an increase of
5% from 2006 due to the start up of the Greater Plutonio, Marimba
and Rosa fields, and the ramp up of Dalia, more than offsetting PSA
changes in the Kizomba A, Kizomba B and Girassol fields.
– The first lifting from the Dalia field (BP 16.67%) was achieved during
the first quarter of 2007, with gross field production ramping up to
245mb/d by the end of 2007. The Dalia field was discovered in 1997.
It entered project execution phase in the first half of 2003 and
production began on 13 December 2006.
– During the second quarter, the Rosa project (BP 16.67%) achieved
first production. Discovered in January 1998, some 135 kilometres off
the coast of Angola in water depths of approximately 1,350 metres,
the Rosa field is located 15 kilometres away from the Girassol FPSO
to which it is tied back. It is the first deepwater field of this size to be
tied back to such a remote installation and in such water depths. Rosa
is expected to maintain the FPSO’s production capacity above
250mb/d until early in the next decade.
– Oil production at the Greater Plutonio offshore development area in
Block 18 began in October 2007. The five fields making up the Greater
Plutonio development were discovered between 1999 and 2001 in
water depths of up to 1,450 metres and it is the first BP-operated
asset in Angola (BP 50% and operator). The development utilizes an
FPSO connected to the wells by a large subsea system. The subsea
system is expected to ultimately encompass 43 wells and the longest
single-riser tower system of its kind in the world. Many components
of the project were constructed in Angola including the world’s largest
Caternary Anchor Leg Mooring (CALM) buoy.
– In October, production commenced from the Marimba North project
(BP 26.67%), in Block 15. The field is in approximately 1,300 metres
of water more than 145 kilometres off the coast of Angola. The
Marimba North project is a tie-back to the Kizomba A development.
The Marimba North production and control facilities have been
integrated with the existing Kizomba A development to effectively and
cost efficiently utilize the existing field facilities. Start-up of the field
was achieved safely without any production impact to the Kizomba A
operations.
– In the ultra deepwater Block 31 there were three exploration
successes, Miranda, Cordelia and Portia, bringing the total for Block
31 to 15. The Miranda well is located in a water depth of
approximately 2,436 metres, some 375 kilometres northwest of
Luanda. The Cordelia well is located in a water depth of approximately
2,308 metres, some 371 kilometres northwest of Luanda. The Portia
well is located in a water depth of approximately 2,012 metres, some
386 kilometres northwest of Luanda.
– In August, the Pazflor Project in Angola Block 17 (BP 16.67%) was
sanctioned. Pazflor will be a standalone FPSO development, the third
major production hub in Block 17, and is expected to deliver first oil in
2011. The development will be based on a new-build FPSO with
subsea wells, rigid flowlines and subsea processing.
– In January 2008, production began at the Mondo field (BP 26.67%) in
Block 15. Located in water depths of approximately 800 metres, the
field utilizes an FPSO and has a total of 36 subsea wells.
Egypt
– In Egypt, BP net production was 97mboe/d, an increase of 10% from
88mboe/d in 2006. This increase was mainly due to an increase in the
number of producing wells and the benefit of full-year production from
producing wells drilled in 2006.
– In Egypt, the Gulf of Suez Petroleum Company (GUPCO) (BP 50%), a
joint venture operating company between BP and the Egyptian
General Petroleum Corporation (EGPC), carries out our operated oil
and gas production operations. GUPCO operates eight PSAs in the
Gulf of Suez and Western Desert and one PSA in the Mediterranean
Sea, encompassing a total of more than 40 fields.
– Progress continued on the Saqqara field (BP 100%) development
project, with first production expected in 2008.
– Progress continued on the Egypt Gas Phase 1 (Taurt) (BP 50%)
development project, with first production expected in 2008.
– In January 2007, BP drilled a successful well, Giza North-1, in the
North Alexandria concession (BP 60% and operator) held by BP, RWE
DEA and EGPC/The Egyptian Natural Gas Holding Company (EGAS).
The Giza North-1 was drilled in 668 metres of water, some 56
kilometres offshore in the Pliocene formation where BP has made
three previous discoveries.
– In May 2007, BP drilled a successful well, Taurus Deep, in the North
Alexandria A Concession (BP 60% and operator) held by BP, RWE
DEA and EGPC. The Taurus Deep well was drilled in approximately
400 metres of water, some 70 kilometres offshore, and is in the
Middle Miocene formation.
– In January 2008, BP finished drilling a successful well, Satis-1, in the
North El Burg offshore concession (BP 50% and operator) held by BP,
IEOC and EGAS. The Satis-1 well was drilled in approximately 90
metres of water, some 50 kilometres offshore, and is in the Oligocene
formation.
– In December 2007, BP had first production from the Denise field
where it holds a 50% interest.
Libya
– In May, BP and its partner, the Libyan Investment Corporation (LIC)
signed a major exploration and production agreement with Libya’s
National Oil Company. The initial exploration commitment is set at a
minimum of $900 million with significant appraisal and development
expenditures dependent on exploration success. BP and the LIC will
explore over 53,000 square kilometres of the onshore Ghadames and
offshore frontier Sirt basins. Successful exploration could lead to the
drilling of around 20 appraisal wells. The agreement was ratified by
the Libyan General People’s Council on 23 December.
Asia Pacific
Indonesia
– BP produces crude oil and supplies natural gas to the island of Java
through its holding in the Offshore Northwest Java PSA (BP 46%). In
2007, BP net production was 39mboe/d, a decrease of 8.8% from
43mboe/d in 2006 as a result of a higher-than-forecasted base decline,
unplanned losses and the impact of higher realizations on the PSA.
– During 2007, development continued on the Tangguh LNG project (BP
37.2% and operator). The project development includes offshore
platforms, pipelines and an LNG plant with two production trains. First
commercial delivery is expected in early 2009.
Vietnam
– BP participates in one of the country’s largest projects with foreign
investment, the Nam Con Son gas project. This is an integrated
resource and infrastructure project, including offshore gas production,
a pipeline transportation system and power plant. In 2007, BP net
natural gas production was 82mmcf/d gross, a decrease of 15% over
2006. This decrease was mainly due to higher supply from another
gas field brought onstream in late 2006. Gas sales from Block 6.1 (BP
35% and operator) are made under a long-term agreement for
electricity generation in Vietnam, including the Phu My Phase 3 power
plant (BP 33.3%).
China
– In 2007, natural gas production was 85mmcf/d BP net, a decrease of
17% over 2006. This decrease was mainly due to the closure of a
Rate Acceleration Agreement with a key customer at the end of 2006.
BP ANNUAL REPORT AND ACCOUNTS 2007 23