Crazy Horse News

BP Announced it has signed a Letter of Intent with Daewoo Shipbuilding & Marine Engineering Company, Ltd. of South Korea for detailed design, fabrication and transport of a semi-submersible 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. equipment, a 188 person quarters, and a complete dual-hoist 2 million pound capacity 5th generation drilling system. Daewoo will build the unit at its fabrication yard in Okpo, Korea. The lower hull measures approximately 350 feet by 350 feet and the upper deck box will measure approximately 350 ft. by 450 ft. largest semisubmersible production/drilling unit in the world. (FEED) work.

BP Amoco Plc said it should be able to provide an update on its giant Crazy Horse deepwater oil discovery in the Gulf of Mexico when two appraisal wells are completed during the next couple of months. "I would say the preliminary results are very encouraging and hopefully we will have some news in the near future," BP Amoco's Houston region Vice President David Welch told reporters after addressing the American Petroleum Institute's Houston chapter. The London-based company announced the Crazy Horse discovery last year, estimating that it contained reserves of at least one billion barrels of oil, making it the biggest ever deepwater discovery in the Gulf of Mexico.

BP Amoco selected two companies to provide $1 billion worth of construction work on a number of its deepwater oil projects in the Gulf of Mexico. The company selected J. Ray McDermott and Heerema Marine Contractors for work and services on the projects, including the Crazy Horse, Mad Dog, Holstein and Atlantis developments. The agreement with McDermott is expected to bring as much as $600 million in work to the company's Amelia fabrication yard at Morgan City, La.. The agreement with Heerema Marine could be worth $400 million, BP said. The contracts are the first for construction on BP's current deepwater discoveries. BP plans to begin installation of the deepwater facilities in 2002-2003.

Exxon Mobil Corporation announced the success of two wells drilled during 2000 in the Crazy Horse Exploration Unit, located in the Gulf of Mexico approximately 125 miles southeast of New Orleans. The wells confirmed Crazy Horse to be a world-class discovery and development opportunity. ExxonMobil owns 25 percent interest in the Crazy Horse Unit with BP (operator) owning 75 percent. The Crazy Horse appraisal well, drilled in Mississippi Canyon Block 822, added new oil pay reservoirs to those encountered in the Crazy Horse discovery. The results confirm that Crazy Horse is at least a billion-barrel discovery. In addition, a major new discovery called Crazy Horse North was drilled in Mississippi Canyon Block 776, located 5 miles northwest of the 1999 Crazy Horse discovery.

Transocean Offshore Inc.'s drillship Discoverer Enterprise has been accepted by BP Amoco and has begun work under a five-year contract with BP Amoco valued at more than $360 million. Dynamically positioned Discoverer Enterprise is the first of a new class of advanced, ultra-deepwater drillships employing the company's proprietary dual-activity drilling system. The vessel has completed equipment appraisal and testing in more than 6,100 ft. of water at BP Amoco's Neptune location in the U.S. Gulf of Mexico. It is currently completing plug-and-abandonment work, and after that, it is expected to begin drilling an appraisal well in the Crazy Horse field.

Ultra-deepwater plays in the Gulf of Mexico offer vast potential for oil and gas production. There are now more than 1,650 active leases in the Gulf of Mexico in water depths exceeding 5,000 ft. and, with 24 drill rigs capable of drilling at this depth now working in the Gulf, activity on these leases is about to take off. In a recent study, we have identified more than 160 fields in ultra-deepwater that are likely to be explored over the next 5 to 10 years and expect at least a third of these will ultimately be developed. Until now, pipeline has been used to transport oil from fields in the Gulf of Mexico to refineries along the Gulf.

BP Amoco announced four significant oil discoveries in the deepwater Gulf of Mexico, including the largest made to date by any company. These major exploration successes add to an already significant reserves base in the deepwater Gulf and demonstrate BP Amoco's leading position in this technically challenging area. Largest of the discoveries is the Crazy Horse prospect, located in 6,000 ft. water depth in the Boarshead basin, 125 miles south-east of New Orleans. With estimated recoverable oil of at least one billion barrels of oil equivalent (boe), it is the biggest discovery ever in the Gulf deepwater. BP Amoco is operator and holds a 75 percent interest. Partner Mobil holds 25 percent equity. The other three discoveries are located in water depths varying from 4,000 to 6,500 ft.