AIOC signs six major Caspian Sea construction contracts

By the OGJ Online Staff

LONDON, Dec. 3 -- Azerbaijan International Oil Co. (AIOC) has signed agreements for six main construction contracts involved in the first phase of development of Azeri, Chirag, and Guneshli (ACG) fields in the Azerbaijan sector of the Caspian Sea.

AIOC said the contracts are valued at $750 million and bring spending to date on the project to more than $1 billion.

BP PLC operates the ACG with a 34.1367% interest, Unocal Corp. has 10.2814%, SOCAR 10%, OAO Lukoil 10%, Statoil ASA 8.5633%, ExxonMobil Corp. 8.0006%, TPAO 6.75%, Devon Ltd. 5.6262%, Itochu Corp. 3.9205%, and Delta Hess Inc. 2.7213%.

McDermott Caspian Contractors Inc. has a contract for platform topsides involving fabrication, assembly, hook-up, and commissioning of the production, drilling, and quarters integrated deck. The work will start this month and will be completed in September 2004. The contract will involve about 4.5 million man-hr, of which about 72% will be local labor.

In preparation for the construction, 132 Azerbaijanis are being trained at McDermott's Jebel Ali yard in Dubai. That number is expected to grow to 200 by yearend. McDermott will train another 500 in Baku.

Another contract with McDermott is for the installation of a 186-km, 30 in. pipeline from the main platform and a 12-km, 30-in. line for the compressor and water injection platform. Work is scheduled to start this month with expected completion in May 2005. The contract will require 1 million man-hr, mostly local labor.

The contract with Bouygues Offshore Co., a French company, is for fabrication and loadout of jackets and piles and the drilling template. The work also will start this month and will be completed in March 2005. The contract will use a high level of local labor to meet the estimated 2.5 million man-hr.

The contract with Saipem SPA is for transport and installation of the drilling template and jackets, and for the floatover of topsides.

Work will begin this month and will be completed in July 2005.The contract will use 160,000 man-hr, using mainly local labor and infrastructure.

The Eiffel Co. contract includes engineering, procurement, and construction of the drilling facilities. Work will begin this month and will be completed in July 2003. Units will be built in France and assembled in Baku.

The contract with Emtunga International AS, a Swedish company, is for engineering, procurement, and construction of the living quarters. Work will start this month, with completion expected in November 2003. Units will be built in Sweden and assembled in Baku.

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