BP's Forties Pipeline System Wins Buzzard Contract

BP has been awarded a contract to transport and process oil from EnCana (U.K.) Limited's Buzzard field through the Forties Pipeline System. The contract was awarded by the Buzzard co-venturers following a competitive tendering process.

This is the biggest field to enter the Forties Pipeline System for 10 years and first oil from Buzzard is expected to start flowing through the system in late 2006, rising to a plateau rate of around 180,000-190,000 barrels per day.

Welcoming the award, FPS Commercial Manager Andrew Hadjitofi said, "BP is pleased to win this strategic new business against intense competition from other oil export options. In recent years, we have developed increasingly competitive offers for access to the Forties Pipeline System, to support the development of smaller fields and new entrants to the North Sea as well as existing customers and larger fields like Buzzard. This award will be important in sustaining high rates of utilisation for a vital element of North Sea infrastructure, bringing benefits for existing and future customers and is also good news for BP's Grangemouth complex."

The addition of Buzzard to the Forties Pipeline System will mean that Forties Blend remains the largest volume traded blend from the North Sea.

The physical connection to the Forties System will be made by means of a new 18" diameter pipeline link and a sub-sea hot tap into the main sealine about 60 kms from the Scottish Coast. Production from fields using the system will not be affected during the course of the tie-in work, which is scheduled to be carried out in summer 2004.

The Forties Pipeline System is owned by BP and commences at the Forties Charlie platform with the landfall at Cruden Bay, Aberdeenshire. The pipeline then continues to the processing terminal at Kinneil, adjacent to BP's Grangemouth complex in central Scotland. Crude oil is shipped from the Hound Point terminal on the Firth of Forth.

The Forties Pipeline System was constructed for the development of the Forties Field and first production occurred in 1975. In the early 1990's the Forties system was expanded to 1150 thousand barrels per day capacity with a focus on providing pipeline transportation to companies developing and operating fields throughout the North Sea.