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. 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 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. The platform will be the largest semisubmersible production/drilling unit in the world. GVA Consultants of Sweden are now completing the Front End Engineering Design (FEED) work. The design has been designated as the GVA 40,000 based on approximate deck load tonnage capability. 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 underway," 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." The Crazy Horse complex, has reserves estimated to be at least 1.5 billion barrels equivalent (BOE). At its peak, this semisubmersible production platform could produce 250,000 barrels of oil per day (BOPD) and 200 million standard cubic feet per day (MMSCFD) of gas. The platform will also include water injection capability up to 300 million barrels per day (MBWPD) for pressure maintenance. Up to 20 wells will be located beneath the platform, and additional remote wells will connect to the semisubmersible structure from locations nearby. Primary topsides modules for Crazy Horse (weighing approximately 21,000 short tons, dry) will be built at Morgan City, Louisiana as has been previously announced.