23 Nov 1998

Texaco awards Captain contract.

As part of its plans to expand its existing Captain field in Block 13/22a of the UK North Sea, Texaco North Sea U.K. Company today announced the award of a contract, worth approximately £100 million, to Kvaerner Oil and Gas Ltd for the engineering, construction and installation of a process and utilities platform.

The Captain field expansion plan, subject to final approval by the UK Department of Trade and Industry, will see an increase in production from the current 60,000 barrels per day to an average plateau rate of 85,000 barrels per day, through the development of the reservoir within the eastern part of the field (Area B). The installation of the new facilities and the commencement of a development drilling programme is scheduled for summer 2000, with first oil from Area B later the same year. The new process and utilities platform will be bridge-linked to Captain’s existing Area A well-head protector platform.

Speaking after the contract award, John McDonald, Texaco North Sea U.K. Company Managing Director, said: "With this new investment, the Captain field is expected to be able to continue production for a further 20 years. The total investment figure for the field’s expansion is in excess of £350 million and it emphasises Texaco’s strong commitment to long term growth. The second phase of the development, which will also include major sub-sea development and an interconnecting pipeline system to the new bridge-linked platform, will create a significant number of jobs within the UK, providing a welcome boost to the offshore construction market."

First oil flowed from the Captain field, after the completion of the first development phase, in March 1997. Located 90 miles north-east of Aberdeen, the Captain reservoir requires down-hole pumps to artificially lift well fluids to the surface. In a North Sea first, the new sub-sea development will use hydraulic submersible pumps (HSPs) æ a notable technological advance in the pumping of multiphase fluids æ after an HSP was successfully tested in a Captain Area A producing well during July 1998. Leveraging such technology for competitive advantage further reinforces Texaco’s position as a leader in innovative oilfield development.

Notes to editors
Captain field partners:
Texaco North Sea U.K. Company (operator) 85%
Korea Captain Company Limited (KCCL) 15%

Further information
Andy Norman
Texaco press office, +44 (0)171 719 4477