Azerbaijan, Baku, 23 May / Trend E. Ismailov /
All issues with regards to assembling and mobilisation for the construction of the latest generation floating drilling rig in Azerbaijan will be resolved by September 2013, a source in the oil and gas market told Trend.
The latest generation drilling rig will be built for SOCAR (State Oil Company of Azerbaijan). Singapore firm Keppel FELS Limited was selected as the contractor for the installation's construction. Some 388.575 million manat has been set aside in the State Oil Fund's budget for 2013 for the construction of the semi-submersible drilling rig required by SOCAR.
According to the source, an agreement with the contracting company will be signed soon. Construction of the installation will start in September 2013 at a new shipyard that SOCAR is to build in Baku.
The Caspian Drilling Company Ltd (CDC), where SOCAR has a 92.44 per cent stake will be the operator of the new drilling installation. In particular the installation will be used for drilling in prospective structures and fields of Azerbaijan such as the Umid deposit and prospective structures such as Babak, Karabakh and Ashrafi.
Given the implementation of major projects in the Azerbaijani sector of the Caspian Sea and in particular drilling on the Babak prospective structure, development of the Absheron gas condensate field, the second stage of development of the Shah Deniz gas condensate field and other projects, Azerbaijan needs to build four new floating rigs.
According to the source, construction of the second rig most likely, will be undertaken with the participation of French Total which is a party to the Absheron field development project. The source said construction of the second drilling rig could be completed as early as 2017.
Touching upon the issue of the third rig, the source said its construction is likely to be implemented with the participation of BP for conducting work within the second stage of development of the Shah Deniz gas condensate field. Construction of the third drill rig will be completed in 2018-2019.
According to preliminary estimates, up to $4 billion will be invested in the construction of four new offshore drilling units in Azerbaijan. These investments will be made in the period during 2018-2019.
The official exchange rate on May 23 is 0.7846 AZN / USD.