18th Sep 2006 16:05
BP PLC18 September 2006 BP SAYS THAT REPAIR OF SUBSEA EQUIPMENT WILL DELAY THUNDER HORSE UNTIL 2008 Following a series of tests carried out over the past four months that revealedmetallurgical failure in components of the subsea system, BP announced todaythat it plans to retrieve and rebuild all the sea-bed production equipment fromits Thunder Horse field in the deepwater Gulf of Mexico. BP said the problem became evident when it conducted pre-commissioning tests bypumping water through the system to establish system integrity. The equipmentpassed all the normal industry standard tests and regulatory requirements. Butwhen the company carried out more prolonged and rigorous testing, as anadditional safety precaution, a failure occurred on a subsea weld. As a consequence of the failure, BP said it had decided to retrieve both thedamaged sea-bed manifold and a second manifold for further examination andonshore testing. The second manifold displayed a similar failure during testinglast week. In view of these failures, BP today said it would now retrieve and replace allthe subsea components it believes could be at risk. This work will be done overthe course of the next year and the company said it does not expect productionfrom Thunder Horse to begin before the middle of 2008. It said it was too early to estimate the additional costs involved in replacingthe affected systems. Notes to Editors: • The Thunder Horse field was discovered in 1999. It is designed to use the largest production drilling quarters semi-submersible platform in the world. • The platform weighs more than 50,000 tons and will produce from water depths of about 6,000 feet, from some of the highest temperature and highest pressure wells in the Gulf of Mexico. • The facility is designed to process 250,000 barrels of oil a day and 200 million standard cubic feet per day. • Oil and gas will be transported to existing shelf and onshore interconnections via the Mardi Gras transportation system. • BP operates the development (75 per cent interest), with co-venturer ExxonMobil owning the balance. • BP began deepwater Gulf of Mexico operations in the mid-1980s. BP now produces about 270,000 barrels of oil equivalent per day from nearly two dozen fields, including BP-operated facilities at Pompano, Marlin, Horn Mountain and Na Kika. Further information: BP Press Office, London, tel: +44 (0)20 7496 4076 BP Press Office, Houston, tel: +1 281 366 5174 - ENDS - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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