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Mon Sep 24, 2012, 08:23 AM

Exclusive - Output to slide further at BP's Azeri oil giant

Source: Reuters

(Reuters) - BP will have to invest billions of dollars more than previously planned if it is to slow falling output at an Azeri oil project that is also that country's biggest cash cow, oil executives and diplomats say.

The investments required to cut the decline at the Azeri-Chirag-Gunashli (ACG) fields are so large that it may not even be commercially viable for the companies to spend the money unless they receive sweeteners from the government, the sources told Reuters.

The problems at ACG will affect international oil supplies and come as BP faces the possibility of paying out $17 billion (10.5 billion pounds) more in fines related to the Gulf of Mexico oil spill than it has budgeted for, after the U.S. Department of Justice accused the company of gross negligence earlier this month.

ACG was supposed to produce more than 1 million barrels per day (bpd), after a third phase was completed in 2008. The prospect of so much non-OPEC crude ensured considerable western diplomatic support for the project and industry kudos for BP.

Read more: http://uk.reuters.com/article/2012/09/24/uk-bp-azerbaijan-idUKBRE88N06Y20120924



Good - Azerbaijan is just another US puppet which uses bent elections. Hope it sinks without trace.

6 replies, 1552 views

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Reply Exclusive - Output to slide further at BP's Azeri oil giant (Original post)
dipsydoodle Sep 2012 OP
Champion Jack Sep 2012 #1
hack89 Sep 2012 #3
dipsydoodle Sep 2012 #5
Rain Mcloud Sep 2012 #2
dipsydoodle Sep 2012 #4
Arctic Dave Sep 2012 #6

Response to dipsydoodle (Original post)

Mon Sep 24, 2012, 09:12 AM

1. More Proof that peak oil is here

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Response to Champion Jack (Reply #1)

Mon Sep 24, 2012, 09:32 AM

3. No - the drilling platforms were not properly engineered.

they were designed when oil was $10 a barrel and the operating margins did not allow for more capable systems.

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Response to hack89 (Reply #3)

Mon Sep 24, 2012, 10:03 AM

5. That is an interesting point.

Thanks for mentioning that.

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Response to dipsydoodle (Original post)

Mon Sep 24, 2012, 09:29 AM

2. How long

 

'till the middle east goes into panic mode?
How long till it happens here,when everything that you need comes on a big truck?

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Response to Rain Mcloud (Reply #2)

Mon Sep 24, 2012, 09:56 AM

4. Its Israel which could go into panic mode

They get a lot of their oil from Ceyhan which is the Turkish end of the Baku–Tbilisi–Ceyhan pipeline which starts in Azerbaijan.

http://en.wikipedia.org/wiki/Baku%E2%80%93Tbilisi%E2%80%93Ceyhan_pipeline

There are a lot of human rights issues with that pipeline too. Assuming it will work where you are then go here : http://www.thedossier.info/video_oil.htm
Scroll down about 3/4s of the page and look for The Curse of Oil - Storyville BBC. Watch Part 2 , The Pipeline, using realplayer.

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Response to dipsydoodle (Original post)

Mon Sep 24, 2012, 02:35 PM

6. Same ol story.

 

Give us tax breaks or we will pack up and leave.

Any other business doing this would be arrested for extortion.

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