Identifier
Created
Classification
Origin
08BAKU883
2008-09-17 13:28:00
CONFIDENTIAL
Embassy Baku
Cable title:  

AZERBAIJAN: GAS LEAK SLASHES OIL PRODUCTION IN

Tags:  AJ CASC ENRG PGOV PREL 
pdf how-to read a cable
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C O N F I D E N T I A L BAKU 000883 

SIPDIS

STATE FOR OPSCENTER

E.O. 12958: DECL: 08/16/2018
TAGS: AJ CASC ENRG PGOV PREL
SUBJECT: AZERBAIJAN: GAS LEAK SLASHES OIL PRODUCTION IN
OFFSHORE ACG FIELD

Classified By: Polecon Chief Robert Garverick, reasons 1.4 (b,d)

C O N F I D E N T I A L BAKU 000883

SIPDIS

STATE FOR OPSCENTER

E.O. 12958: DECL: 08/16/2018
TAGS: AJ CASC ENRG PGOV PREL
SUBJECT: AZERBAIJAN: GAS LEAK SLASHES OIL PRODUCTION IN
OFFSHORE ACG FIELD

Classified By: Polecon Chief Robert Garverick, reasons 1.4 (b,d)


1. (C) According to BP Azerbaijan Vice-President for
Communications and External Affairs Seymour Khalilov, at 0820
hours Baku local time Central Azeri Offshore oil platform
workers noticed gas bubbles "about one-third the size of
soccer balls" coming to the water's surface around the
platform. Subsequently the platform's gas detection system
signal went off, signaling abnormal levels of underwater gas.
At 0900 hours the Offshore Installation Manager decided to
evacuate the platform, sounding the "muster" alarm at 0900
hours. The 211 workers aboard the platform immediately
deployed to lifeboats, subsequently moving to an offshore
vessel to be transported to shore.


2. (C) BP Azerbaijan then shut in production at the Central
Azeri field and also shut down all pipes coming into and out
of Central Azeri, forcing a shut-in of production for the
Western Azeri Platform too (note: these two platforms are the
two major ones in the ACG field, designed for a combined
total of approximately 600,000 barrels per day). Khalilov
told Econoff that with Central Azeri and Western Azeri
platforms shut down there would be a production decrease of
approximately 540,000 barrels per day. He said the Eastern
Azeri platform was still producing, albeit at reduced rates,
the Deep Water Gunashli platform was also continuing
production at approximately 90,000 bpd, and the Chiraq
platform was still flowing at approximately 120,000 bpd.
Operations at the offshore Shah Deniz gas field were not
affected.


3. (C) Khalilov said it was too early for BP to have an idea
of the cause of the underwater gas leak. BP was dispatching
a remotely operated vehicle (ROV) to Central Azeri to conduct
an underwater survey of the subsea structure. BP was also
reviewing the results of last year's ROV underwater
inspection of Central Azeri, conducted approximately
September 2007, to see if there were any clues as to what
might have happened. Khalilov said that BP Azerbaijan would
not restart production at these two wells until and unless it
understood the cause of the leak. BP Azerbaijan has set up a
"BP Business Support Team," meeting every few hours, to
manage this production disruption.


4. (C) In a subsequent conversation with Econoff, BP
Azerbaijan President Bill Schrader confirmed that the ACG
field had been running at about 900,00 bpd until these two
wells went offline. It was now producing "at around forty
percent," with the goal to be producing at approximately
400,000 bpd until BP can restart these two wells. Schrader
stressed that "this was definitely not sabotage or an
accident . . . this has to do with geology (i.e. underwater
seismic activity) and/or the well itself."


5. (C) Schrader also stressed that there will be no oil
supply disruption to the Ceyhun terminal in Turkey, as the
oil storage tanks at the Sangachal terminals were full. In a
subsequent conversation, a Sangachal executive told Econoff
that the approximately three million barrel storage at
Sangachal was approximately 75 percent full, and that the BTC
pipeline could run at current levels for "a couple of days"
before volumes would have to decrease. He added that BP
Azerbaijan hoped to know more tomorrow, after the ROV had
been deployed.


6. (C) COMMENT: This incident, coming as it does after the
BTC explosion in Turkey in early August and the subsequent
Russian aggression in Georgia, is bound to spark rumors of
Russian subsea foul play. BP Azerbaijan states that there is
currently no indication of any such sabotage, although it
also points out that it doesn't yet know the cause of the gas
leak.


7. (C) COMMENT (CONTINUED): From an ACS viewpoint, some of
the 212 Central Azeri workers who had to evacuate the
platform in a hurry are American citizens, and they left the
platform without their passports. If there is a prolonged
work disruption, BP will seek to have them leave the country.
In that instance, BP Azerbaijan will work with Embassy
Consular section towards seeking exit documents for those
American citizens seeking to leave. END COMMENT.
DERSE