Chirag construction to end earlier than planned

Oil&Gas Materials 1 February 2010 16:31 (UTC +04:00)

Azerbaijan, Baku, Feb. 1 / Trend E.Ismayilov /

The Heydar Aliyev Baku Deep Water Jacket Factory will complete the construction of the bottom base plate to advance drilling wells within the Chirag oil project. The construction will increase oil production (on the block of the offshore Azeri-Chirag-Guneshli fields) earlier than scheduled, a source in the oil and gas market said.

"As the company BosShelf will hold full assembly of plates earlier than scheduled. They must be completed in March-April," the source said.

Earlier the source said the factory is constructing the base plate together with BosShelf. The plate is designed for drilling 20 wells. Earlier BosShelf together with McDermott Caspian Contractors built six platforms under the development of these fields upon BP's order, which is the operator of the ACG.

The estimated daily volume of oil production from the West Chirag platform will amount to 183,000 barrels, the Director of BP Company's offshore facilities project in Azerbaijan, Ilgar Mammadov said earlier.

The expected daily volume of gas production from the new platform will be 229 million standard cubic feet. Estimated daily volume of gas injection into the layer on the platform will be 80 million standard cubic feet (about 2.3 million cubic meters). Chirag oil project envisages construction of a new platform "West Chirag", construction of necessary pipelines and work on the platform on deepwater Guneshli. The platform will be installed at a depth of 170 meters between the already-running production platforms Chirag and Guneshli.

Construction of a new platform within the Chirag oil project (COP), which envisages increasing oil production at the block of Azeri-Chirag-Guneshli (ACG) fields, is scheduled to begin in late 2010. The Dede Gorgud Rig will perform the drilling. The project is expected to get oil in 2013.

The new Chirag Oil Project will add more than 300 million barrels of crude oil to the pipeline during the Azeri-Chirag-Gunashli (ACG) Production Sharing Agreement (PSA) period.

The Azeri-Chirag-Gunashli PSA was signed in September 1994. The agreement provides for the development of the contract area within 30 years. The project requires $20 billion investment.

ACG participating interests are: BP (operator - 34.1 percent), Chevron (10.2 percent), SOCAR (10 percent), INPEX (10 percent), StatoilHydro (8.6 percent), ExxonMobil (8 percent), TPAO (6.8 percent), Devon (5.6 percent), ITOCHU (3.9 percent), and Delta Hess (2.7 percent).

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