BP Subsea Projects and Exploration Update
During the fourth quarter, we started production at five BP-operated major projects: Mango and Cashima in Trinidad, Atlantis and King Subsea Pump in the Gulf of Mexico and Greater Plutonio in Angola. Additionally, we had first production from the Denise field in Egypt, where BP holds a 50% interest and, shortly after the end of the quarter, we also had first production from the Mondo field within the Kizomba C development in Angola, where BP holds a 26.67% interest.
Furthermore, we had further exploration success in Azerbaijan with the Shah Deniz SDX-04 discovery, in Angola with the Portia discovery and in Egypt with the Satis and Taurus Deep discoveries. In December, we announced an agreement with Husky Energy Inc. to create an integrated North American oil sands business, by means of two separate joint ventures. In one, BP will take a 50% interest in Husky Energy’s Sunrise field in Alberta, Canada, while in the other, Husky will take a 50% interest in BP’s Toledo refinery. Also in December, the Libyan General People’s Committee ratified the exploration and production agreement between BP and Libya’s National Oil Company, which we announced in May of 2007.
During 2007, we extended our track record in achieving reported reserves replacement of more than 100%, excluding acquisitions and disposals, in spite of significant PSA effects associated with high oil prices.
