AZERBAIJAN ACG FIELD OIL PRODUCTION STILL WAY DOWN

C O N F I D E N T I A L BAKU 000897 SIPDIS E.O. 12958: DECL: 08/19/2018 TAGS: PGOV PREL AJ ENRG SUBJECT: AZERBAIJAN ACG FIELD OIL PRODUCTION STILL WAY DOWN DUE TO GAS LEAK REF: BAKU 883 Classified By: Polec Counselor Robert Garverick, Reasons 1.4 (b,d) ¶1. (C) According to BP Azerbaijan Vice-President for Communications and External Affairs Seymour Khalilov, as of 1400 hours local time, Friday September 19, oil production from the offshore ACG mega-field is down from a pre-incident level of over 900,000 bpd to approximately 250,000 bpd (NOTE: other informed sources have told Energyoff the production level is closer to 200,000 bpd). ¶2. (C) Production is still shut in at Central Azeri and Western Azeri Platforms, with "a couple of wells" still operating in the Eastern Azeri Platform. The Chiraq and Deep Water Gunashli platforms within the ACG field are still operational. BP PLAN OF ATTACK ¶3. (C) ACG Operator BP sent a helicopter to fly over the Central Azeri Platform (the source of the gas leak) on Thursday, September 18. The helicopter noted gas bubbles still emerging from three locations around the platform, although it is unknown whether these bubbles were coming from the same source or separate ones. BP is trying to send a helicopter again today if it can get permission from the GOAJ Defense Ministry, who up to now has been "very unhelpful," insisting that BP cannot fly helicopters over the area since BP will have cameras and be taking pictures. Conversely, Khalilov said the GOAJ Foreign Ministry has been very helpful in helping BP with the foreign national workers who were taken off the Central Azeri Platform. ¶4. (C) Khalilov said if BP can get a helicopter over the Central Azeri Platform today during daylight hours it will seek to use the information gained to fashion the best and safest angle of approach for the vessel carrying the ROV (remotely operated vehicle) that BP will use to conduct underwater assessments. The helicopter fly-over will also help determine how close to the platform the vessel can safely approach. ¶5. (C) Khalilov said that BP would inform the GOAJ "early next week" of what it has learned and what it plans to do. Khalilov could not even hazard a guess as to how long production will stay at current low levels (NOTE: Other informed sources have told Energyoff that it was not yet clear what was wrong or when production would resume, but, in the words of one interlocutor, "I don't have a good feeling.") Khalilov told EnergyOff that were production to continue at the current low levels past early-mid next week, oil deliveries via the BTC pipeline to the Ceyhun terminals would be affected. LU