Baku, Azerbaijan, Feb.28
By Emil Ismayilov Trend:
Since 2014, the State Oil Fund of Azerbaijan (SOFAZ) has allocated slightly more than 2.3 million manat for the construction of new generation floating drilling rig as of Feb. 25, the Fund told Trend on Feb. 27.
A maximum budget for the project on construction in Azerbaijan of a new generation floating drilling rig is $1,116.7 million.
SOFAZ owns 90 percent share in Azerbaijan Rigs, a company established for the construction of a new platform. The remaining 10 percent share in the company is owned by SOCAR (the State Oil Company of Azerbaijan).
"Some 2,306 ,995.28 manat has been allocated for financing the construction of a new modern rig in the Caspian Sea," the Fund said.
Some $169.14 million dollars was allocated for the implementation of this project from the State Oil Fund in 2013. Some 285.2 million manat is scheduled to be allocated for the project's implementation in 2014.
The first new generation drilling rig will be built for the needs of SOCAR. The Caspian Drilling Company (CDC, 92,44 per cent equity share belongs to SOCAR) will be drilling operator. Singapore company, Keppel FELS Limited was chosen as contractor of rig construction, with which CDC signed an agreement for conducting construction works in June.
The new rig will be designed to drill wells up to 8,000 meters of depth, at 1,000 meters depth of the sea. Building installation will be completed in 2016.
In particular, the rig will be used for drilling on Azerbaijan`s promising structures and fields, such as Umid field, promising structures such as Babak, Karabakh, Ashrafi and others.
Considering the implementation of the major projects, it is necessary for the country to build four new floating drilling rigs in Azerbaijani sector of the Caspian.
State Oil Fund was established in 1999, and while its assets amounted to $ 271 million.
As of January 1, 2014, SOFAZ assets, increased by 5.1 percent compared to the beginning of 2013 ($34, 129.4 million), amounting to $ 35, 877.5 million.
According to regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The official exchange rate is 0.7845 AZN/USD on Feb. 27.
Translated by S.I.
Edited by C.N.