BP Announces First Oil from Farragon

BP, on behalf of the Farragon field partners, has begun flowing from the Farragon field, 140 miles northeast of Aberdeen. This is expected to peak at 18,000 barrels of oil per day when the second well comes on stream later this year.

Farragon has been developed as a subsea tie-back to the BP-operated Andrew platform via the Cyrus subsea manifold. Farragon is a 74 million ($130 million) development and is expected to recover around 18 million barrels of oil.

Dave Blackwood, BP's Director for North Sea operations, said the Farragon development was another example of successful investment that maximises the use of existing North Sea infrastructure.

"Bringing the project from discovery to first oil in less than 3 years demonstrates what can be achieved through enthusiasm, innovation and cooperation in a stable business environment. This is a hugely successful project and is typical of the satellite opportunities which will be vital for the future of the North Sea."

Gordon Birrell, Director for BP's Mature Business Unit, added:

"Today's achievement is a credit to the teams that have been involved in the various stages of Farragon development, and their focus on teamwork and safety that has enabled us to meet our challenging timetable for first oil."

Oil from the field will be processed through existing facilities on the Andrew platform and exported onwards to the Forties Pipeline System.

The partners in the Farragon field are BP (operator) 50%, Eni (30%) and Nexen Petroleum U.K. Ltd (20%).

Discovered in April 2003, Farragon is located 140 miles northeast of Aberdeen in water depths of around 350 feet. The Farragon development centers on two horizontal wells and a subsea manifold which is tied back to the existing Cyrus subsea manifold by a new 4.5 mile, 10" production pipeline.

The discovery is 9 miles from the BP-operated Andrew platform and the the time from exploration discovery to first oil was less than 3 years.

The Farragon development is expected to recover around 18 million barrels of oil and peak production from Farragon is expected to be around 18,000 barrels of oil per day. Cyrus is a small oilfield located 7 miles to the north of the Andrew platform which is tied back to the Andrew platform via a subsea manifold.

The Farragon field partners are BP (operator) 50%, Eni (30%) and Nexen Petroleum U.K. Ltd (20%).

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