Exclusive - Output to slide further at BP's Azeri oil giant
Source: Reuters
(Reuters) - BP will have to invest billions of dollars more than previously planned if it is to slow falling output at an Azeri oil project that is also that country's biggest cash cow, oil executives and diplomats say.
The investments required to cut the decline at the Azeri-Chirag-Gunashli (ACG) fields are so large that it may not even be commercially viable for the companies to spend the money unless they receive sweeteners from the government, the sources told Reuters.
The problems at ACG will affect international oil supplies and come as BP faces the possibility of paying out $17 billion (10.5 billion pounds) more in fines related to the Gulf of Mexico oil spill than it has budgeted for, after the U.S. Department of Justice accused the company of gross negligence earlier this month.
ACG was supposed to produce more than 1 million barrels per day (bpd), after a third phase was completed in 2008. The prospect of so much non-OPEC crude ensured considerable western diplomatic support for the project and industry kudos for BP.
Read more: http://uk.reuters.com/article/2012/09/24/uk-bp-azerbaijan-idUKBRE88N06Y20120924
Good - Azerbaijan is just another US puppet which uses bent elections. Hope it sinks without trace.
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