BP said early last week that it has entered into a letter of intent with Daewoo Shipbuilding & Marine Engineering Co. Ltd. of South Korea for the design, construction and transport of a semi-submersible unit for the Crazy Horse project in the Gulf of Mexico. The companies said the platform will be the largest semisubmersible production/drilling unit in the world.

BP said the $380 million contract calls for delivery in the first quarter of 2004, in time for module integration and production startup in early 2005. The contract includes construction of the lower hull, deck box, some process and utilities equipment, a 188 person quarters, and a complete dual-hoist 2 million pound capacity 5th generation drilling system. Daewoo said it will build the unit at its construction yard in Okpo, Korea.

The companies reported that the lower hull will measure approximately 350 feet by 350 feet and the upper deck box will measure approximately 350 feet by 450 feet. GVA Consultants of Sweden are now completing the Front End Engineering Design (FEED) work. Steel is to be ordered in March 2002, and physical work on the hull is expected to commence by July 2002.

“BP is very excited about having this work under way,” said Jack Golden, BP Group vice president. “Crazy Horse is the largest oilfield discovered to date in the Gulf of Mexico, and giving life to a project of this scope is a once-in-a-lifetime opportunity. This major fabrication contract is a giant step toward production startup. Crazy Horse will be the centerpiece of BP’s Gulf of Mexico growth strategy. We look forward with great anticipation to startup of this world class project.”

BP said the Crazy Horse complex has reserves estimated to be at least 1.5 billion boe. At its peak, this semi-submersible production platform could produce 250,000 b/d and 200 MMcf/d of gas. The platform will also include water injection capability up to 300 million b/d for pressure maintenance. BP reported that up to 20 wells will be located beneath the platform, and additional remote wells will connect to the semisubmersible structure from locations nearby.

The company said primary topsides modules for Crazy Horse (weighing approximately 21,000 short tons, dry) will be built at Morgan City, LA as previously announced.

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