The Azerbaijan State News Agency

CONSTRUCTION OF NEFTYANIE KAMNI - BAHAR GAS PIPELINE COMPLETED

Construction and testing of the 20" underwater gas pipeline from Neftyanie Kamni to Bahar a distance of 66.278 km has been completed. A spokesperson for SOCAR said that the construction of the pipeline with a throughput of 5 - 5.5 million m3 gas per day was done by specialists from Caspmorneftegasstroi, Caspmornefteflot and other divisions of Azneft (a subsidiary of SOCAR). Work was done with the help of the pipe-layer Suleiman Vezirov on sub sea floor depths ranging from 8-30 meters.

According to the State Oil Company, construction of this gas pipeline will allow increasing the supply of gas to the shore from Neftyanie Kamni, Guneshli and Chirag.

Putting into operation in particular this new gas transport line is an important component of the second stage of the development of the Guneshli deposit (the shallow part of Guneshli is being developed by the State Oil Company - ed), adopted by the government of Azerbaijan and SOCAR. This stage envisages the installation of a new platform and additional blocks to the new platform from which 48 oil and gas wells will be drilled on the undeveloped part of the deposit. According to the forecasts of geologists, gas production from Guneshli in 2010 will increase 2 times to 10 million m3 per day. This new pipeline will ease the problem encountered in transporting the increasing volumes of gas from the development of Guneshli.

In accordance with a directive from Azneft, the oil and gas drilling division "28 May" was entrusted with collecting all the associated gas from the middle and lower pressures that were earlier not used, compressed and transported to shore. This in total makes up 1.3 million m3 of gas.

Pipes for the gas pipeline were bought in Germany from Mannesmann and supplied to Azerbaijan by Ferrostall Piping Supply that won the respective tender put out by SOCAR and signed a contract for 38 billion manat (USD8.260 million). Overall cost of construction of this gas pipeline cost 135 billion manat (about USD27.5 million).

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