HOUSTON, Nov. 5 -- BP PLC said Monday it has signed a letter of intent with Daewoo Shipbuilding & Marine Engineering Co. Ltd. for design, fabrication, and transport of a semisubmersible unit for the Crazy Horse project in the Gulf of Mexico.
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 scope of work includes the lower hull, deck box, some process and utilities equipment, a 188-person quarters, and a complete dual-hoist, 2 million lb, fifth generation drilling system.
Daewoo will build the unit at its Okpo, South Korea, yard. The lower hull will be 350 ft by 350 ft and the upper deck box 350 ft by 450 ft. BP said the platform will be the largest semisubmersible production-drilling unit in the world.
GVA Consultants of Sweden is completing the front end engineering design work. The design has been designated as the GVA 40,000, based on approximate deck load tonnage capability. Steel will be ordered in March and work on the hull is expected to begin by July.
Jack Golden, BP group vice-president, said, "Crazy Horse is the largest oil field 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."
BP estimates reserves at the Crazy Horse complex of fields (Crazy Horse on Mississippi Canyon Block 778 and 822 and Crazy Horse North on Mississippi Canyon Block 776) at 1.5 billion boe or more. At peak output, the semisubmersible could produce 250,000 b/d of oil and 200 MMcfd of gas. The platform will also include water injection capability up to 300 million b/d for pressure maintenance. Up to 20 wells will be drilled from the platform, and remote wells will be connected to the semisubmersible.
Primary topsides modules for the Crazy Horse project, weighing 21,000 short tons, dry, will be built at Morgan City, La., as was previously announced.