BP Submits PDO for Valhall Flanks

BP submitted a Plan for Development and Operation (PDO) for the Valhall Flanks to the Ministry of Petroleum and Energy on Friday August 10th.

Valhall Field underlies block 2/8 in PL 006B and block 2/11 in PL 033 and is located approximately 18 miles south of the Ekofisk Platform complex.

The PDO covers the development and operation of two normally unmanned platforms, one in the North and one in the South of the existing Valhall field. The production from each of these platforms will be routed through two separate pipelines and processed at the Valhall complex. Each platform will contain 16 well slots.

The total capital investment program of 4.2Bn NOK will accelerate production and add 127 million barrels of oil equivalents (110million barrels of oil) to recoverable reserves. First oil is planned for the first quarter of 2003.

Separate contracts for the wellhead platforms, pipelines, X-mas trees/wellheads and for drilling will be awarded during August and September. All contract awards are subject to government approval of the PDO.

Due to uncertainty on pipeline export capacity, contract award for the second platform may be delayed until sufficient export capacity has been secured. BP is the operator of Valhall with a 28.09 percent interest, Amerada Hess holds a 28.09 percent interest, Enterprise Oil holds a 28.09% interest and TotalFinaElf holds the remaining 15.72 percent interest.