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.
Champion Jack
(5,378 posts)hack89
(39,171 posts)they were designed when oil was $10 a barrel and the operating margins did not allow for more capable systems.
dipsydoodle
(42,239 posts)Thanks for mentioning that.
Rain Mcloud
(812 posts)'till the middle east goes into panic mode?
How long till it happens here,when everything that you need comes on a big truck?
dipsydoodle
(42,239 posts)They get a lot of their oil from Ceyhan which is the Turkish end of the BakuTbilisiCeyhan 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.
Arctic Dave
(13,812 posts)Give us tax breaks or we will pack up and leave.
Any other business doing this would be arrested for extortion.