Offshore staff

LONDON -- Oil production has begun ahead of schedule at the East Azeri platform in the Azerbaijan Caspian Sea. Completion of Phase 2 of the Azerbaijan International Operating Co.'s Azeri-Chirag-Gunashli field development began flowing four months early. Phase 3, the deepwater Gunashli area, is scheduled for first production in 2008.

East Azeri located in 150 m of water on the east side of the Azeri field. Production began from the first of eight pre-drilled wells and is scheduled to increase through mid-2007 as the other pre-drilled wells are brought online, prior to platform drilling commencing. The EA facility will produce 260,000 b/d bringing total Azeri production, including West and Central Azeri, to over 800,000 b/d.

The EA facilities comprise a 48-slot production, drilling, and quarters platform and a 30 in. oil pipeline tie-in to the onshore Sangachal Terminal along with other in-field pipelines and systems.

Pariticpants are BP (operator - 34.1%), Chevron (10.3%), Socar (10%), Inpex (10%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), Itochu (3.9%), and Hess (2.7%).

10/27/06