TNK-BP Produces First Gas from Lan Do Field Offshore Vietnam

TNK-BP Produces First Gas from Lan Do Field Offshore Vietnam

TNK Vietnam, a fully owned subsidiary of TNK-BP, today announced that the Company has produced the first gas from Lan Do field in Block 06.1, about 360km offshore south of Ba Ria Vung Tau Province in Vietnam.

Lan Do wells were opened for gas production at 20:40 local time on Sunday, 7 October 2012.

The two vertical sub-sea wells in a water depth of 185 metres from Lan Do field are now tied back to Lan Tay Platform in Block 06.1, through 28 kilometres of single 12-inch flow line and umbilical, enabling TNK Vietnam to produce gas from the existing infrastructure.

Lan Do field, which has a maximum production design capacity of 5 mmscmd (175 mmscfd), is expected to bring two billion cubic metres (70 billion cubic feet) of gas to market annually.

“The development of our offshore fields is of massive significance in terms of TNK-BP’s long-term strategic development. This first gas at Lan Do field opens a new phase in the life of our Company. We have effectively delivered our first offshore drilling project in TNK-BP’s history ,thereby proving that the Company has all that is required to undertake such sophisticated and complex projects. The experience we’ve gained will allow TNK-BP to successfully participate in the development of other offshore oil and gas projects in the future,” said Alexander Dodds, TNK-BP Executive Vice President for Upstream.

“Lan Do is the first offshore field development project in the past 10 years for the team in Vietnam, and the first ever for TNK-BP Group. We are honored to mark this significant milestone for our operations in Vietnam, and to remain a substantial gas producer in the country,” said Hugh McIntosh, TNK Vietnam General Director.

Lan Do field development project started in 2010 and became intensive from the beginning of this year, with successful completion of drilling operations in April, umbilical installation in June, flow line installation in July, and mechanical completion and well test at design flow rate in October.

The project was delivered without any lost time incidents, on time, and within budget.

Press Release, October 9, 2012

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