Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ryan Todd – Morgan Stanley.
Ryan Todd – Morgan Stanley
As far as I understand, your Q3 production target is around 76,000 barrels a day which is almost up to the Q1 peak despite a transition to cost recovery. Can you talk to what the drive is there? Is it outperformance at the Kikeh field, and what is the best way to look at it going forward?
David M. Wood
Let me answer the broader question, and we can kind of drill down to Kikeh I think. We’re suffering from some project delays. Azurite I was hoping would be on production by right now. It’s got a problem in one of the valves and one of the wells we want to bring on, and we kind of lost a couple of weeks here, but I’m confident we’ll get that fixed and be able to bring that up, and so that’s a little bit of delay. If I look at the whole year, we’re talking about 170,000 barrels a day average. We’re seeing some Sarawak gas delay and some Kikeh gas delay. That accounts for about 60% of the change, and the rest is delay in Thunder Hawk for about 8 days, and then one of the wells that we got on is not performing as expected. It’s doing okay, but it’s not doing as we expected. That’s about 1100 barrels a day, and then Kikeh with the issues with gas and how that field has been working is about 1500 barrels a day behind, so we add all that up, and you throw in the slight positives in Canada and the Gulf of Mexico gas, we’re down about 4900 barrels a day for the year, so that’s kind of the production guidance story there. Fourth quarter will still average 210,000 BOE a day. Specifically on Kikeh, part of it has been tied to the Kikeh gas and being able to get the gas off the facility on a consistent basis. The last few weeks, that’s been doing much better, so I think some of the relative performance is because we’ve overcome the change in entitlement with better operational performance largely tied to that. We also had a flare tip on the facility that was repaired in the first quarter and kind of knocked that down a little bit, but that was just for a few days.
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