ECONOMY


BP extends its drilling and engineering contract in Caspian

Baku, April 16, AZERTAC

BP as operator of the Azeri-Chirag-Gunashli (ACG) oil and Shah Deniz gas fields in the Caspian Sea announced today a $500 million extension to its drilling and engineering contract in Azerbaijan. The new contract has been awarded to the Turan Drilling & Engineering Company LLC which is a KCA Deutag and SOCAR AQS joint venture.

This represents another major contract awarded by BP as operator in the Caspian to a company with a local partner. It builds on the successful local content development strategy that BP and its co-venturers set from the start of their involvement in the region as a priority area of contribution to local capacity-building and enhancement of the local market. It also is in line with BP and its co-venturers’ business objectives to develop Caspian resources ever more efficiently and competitively working closely with the Government and SOCAR.

The contract covers offshore operations and maintenance activities for seven platform rigs operated by BP including the Central, East and West Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations. The initial term of the contract is for five years with two one-year extension options.

BP’s Vice President Mike Zanghi said: “We are pleased to have awarded this contract to a joint venture between KCA Deutag and SOCAR AQS. As a long-term safe and efficient operator in the Caspian we welcome the combination of KCA Deutag’s more than 20 years of Caspian experience and international expertise with SOCAR AQS’s deep knowledge of the Caspian and their leadership within the Caspian drilling industry. BP operates world-class platform facilities in the Caspian as part of its 27 years successful business in the region. We hope this new contract will support our continued commitment to safety, development of local capabilities, cost efficiency, competitiveness and global industry standards.”

BP and its co-venturers have a strong and long-standing commitment to Azerbaijan and for over 27 years have been engaged in the country both economically and culturally. To date, they have invested more than $72 billion in oil and gas projects and related areas in Azerbaijan.

In addition to their primary targets, BP-operated projects have brought many benefits for local communities by creating jobs, generating revenues, providing opportunities for economic growth, building partnerships and developing local supply chain, supporting education and training, sport and cultural legacy. These activities have presented a great opportunity to make a positive difference to the people of Azerbaijan.

In Azerbaijan, BP as operator employs around 2,900 professional staff. Some 90% of BP’s permanent professionals in Azerbaijan are nationals with many of them in senior leadership positions.

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