Production begins at Gunashli

2008-04-23

The Azerbaijan International Operating Company (AIOC) has 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 development in the Azerbaijan sector of the Caspian Sea.

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.

ACG participating interests: 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%).

Facts
* 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 stabilisation 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.