BP SIGNED NEW CONTRACT ON DRILLING OF EXPLORATION AND DEVELOPMENT WELLS
BP as operator of the Azeri-Chirag-Gunashli (ACG), Shah Deniz and Inam Production Sharing Agreements (PSAs) announced the signing of a new contract with Global Santa Fe (GSF), a partner in CDC (Caspian Drilling Company) вЂ" a joint venture with SOCAR, for the provision of the Istiglal and Dada Gorgud semi-submersible drilling rigs for exploration and development projects in the Azerbaijan sector of the Caspian Sea, the press-release disseminated today by BP reads, Trend reports.
Both rigs belong to SOCAR. The total rig and support workforce comprises some 300 people, who are mainly local Azerbaijan citizens. The contract underpins BPвЂ™s long-term commitment to develop the oil and gas reserves of Azerbaijan on behalf of SOCAR and partners.
The expected contract value is worth approximately $250million and this is a substantial commitment to the continued drilling and employment of local expertise and equipment in the Azerbaijan sector of the Caspian Sea.
The Dada Gorgud is currently engaged in ACG pre-drill activities over the East Azeri template. Later in the year the rig will commence work on Deep Water Gunashli (ACG Phase 3).
The Istiglal is preparing to begin drilling another Shah Deniz development well, which will be followed by appraisal and exploration activity on Shah Deniz and probably Inam.
Natig Aliyev, President of SOCAR, says: вЂњThe contract is a very good example of partnership and sharing of all the best that we and our foreign partners have achieved.
These two rigs have been upgraded to world standards and are manned with excellent staff comprising well-trained and highly skilled people capable of meeting the challenges of drilling in the Caspian Sea. In addition to providing long-term job opportunities for about 300 people, the contract will also allow us to add to our joint drilling experience with our foreign partners.вЂќ
David Woodward, BP Azerbaijan Associate President, said: вЂњWe welcome this new contract which will enable AzerbaijanвЂ™s two drilling rigs to be fully engaged in our major exploration and development activities in the Caspian for many years to come. This is an important contract that allows us to focus on the long-term, best-in-class development of AzerbaijanвЂ™s oil industry.
We would like to thank GSF and SOCAR for their support in completing this contract, and working with us to find innovative long-term solutions to meet the needs of the exploration and development programmes aheadвЂќ.