Azerbaijan, Baku, July 3 / Trend E.Ismayilov /
Topside construction of the platform within the Chirag oil project will start soon, a source in the oil and gas market reported. Construction is aimed at increasing oil production on the offshore block of the Azeri-Chirag-Guneshli (ACG) fields.
The Amec-Azfen-Tekfen (ATA) alliance will carry out construction near Baku. The company will also construct a residential block for the platform.
"Currently, the work on the reconstruction of the area is underway. The construction work will be launched in this month," the source said. "The work may be launched within one to two weeks."
The project will cost $335 million, of which 163 million will receive Tekfen (together with shares in Azfen). ATA is already engaged in construction of the topside of one of the technological platforms under the project on the development of the Azeri-Chirag-Guneshli fields.
The ATA is holding preparatory work at the site. It has already built technological platform topsides under the ACG project.
The majority of the construction within the Chirag oil project will be implemented in Azerbaijan. In addition, the construction of a drilling platform module will be held, which was built abroad for previous projects.
The expected daily volume of gas production from the new platform will be 229 million standard cubic feet (more than 6.5 million cubic meters). The estimated daily volume of gas injection into the platform layer will be 80 million standard cubic feet (about 2.3 million cubic meters). Chirag envisages the construction of a new platform called "West Chirag," the construction of pipelines and various activities on deepwater Guneshli. The platform will be installed at a depth of 170 meters between the already-running production platforms Chirag and Guneshli.
The construction of the new platform 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 project will add more than 300 million barrels of crude oil to the pipeline during the Azeri-Chirag-Gunashli PSA.
The 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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