BP Azerbaijan Maintains Big Drilling, Field Development for 2008

BP Azerbaijan reported that early in 2008, Chirag finished drilling a series of planned sidetrack oil producers (A10z, A03z, and A05z) to replace wells that had reached the end of their productive life. These wells were all successful and will continue to support and deliver the reservoir plan and production for Chirag into the future. The current drilling activities on Chirag are focused on sidetracking an extended reach oil producer (A18z) to the far northwestern side of the reservoir. This will be followed by one more conventional oil producer sidetrack (A07z). During the year, we will also conduct a well surveillance campaign aimed at increasing the productivity of some of the existing wells. This year's plan for Chirag also includes work to commission the last two remaining well slots on the platform.

This year we have already drilled an oil producer well (B20), the sixth platform drilled well on CA. This well was successfully completed at the end of February. We then commenced drilling B21 (gas injector) and these activities are currently ongoing to plan. We expect to complete this well in early May. In 2008 we plan to drill 4 wells including B20 and B21 (2 producers, 1 gas injector and 1 water injector) on CA.

Early this year we successfully drilled a producer (C14), which is the ninth platform drilled well on WA. The well was completed in March. Following this we commenced drilling another oil producer (C15) and this well is on track to be completed before the end of April. Overall we plan to drill 4 wells including C14 and C15 (2 producers and 2 water injectors) on WA in 2008.

In January 2008 we completed a water injector (D10), which is the second platform drilled well on EA. The well is being commissioned for water injection later this year. At the end of February we then commenced drilling the third platform well D11, which is designed as a producer. Drilling activities on this well are currently ongoing and the well is on track to be completed in May. Overall we plan to drill 4 wells including D10 and D11 (2 producers and 2 water injectors) on EA in 2008.

Deep Water Gunashli (DWG):

DWG drilling activities currently focus on two areas: 1) the pre-drilled wells tie-back program on the drilling, utilities and quarters (DUQ) platform following the completion of offshore installation of DUQ topsides and 2) the subsea water injection drilling program.

The first program commenced in September last year and has included batch re-entry and completion activities on the ten pre-drilled template wells. Three of the pre-drilled wells were already complete in preparation for the start up of DWG production earlier this month. We will continue to tie-back the remaining pre-drilled wells until we start platform drilling operations in early 2009.

The subsea water injection drilling program, which now includes twelve wells to be drilled at three subsea manifolds by the Dada Gorgud, has continued successfully since the beginning of this year. As part of this program three wells have been drilled on each of the North and South manifolds. We have already completed well G01 on the South manifold. On the North manifold, we have completed well F01 and are in the process of completing F02. The Dada Gorgud will return to the South manifold and complete G02 and G03. We will then return the rig to the North manifold and complete F03. The Dada Gorgud is scheduled to move to the East manifold in September to begin drilling operations there and continue through 2009.

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