BP awards design contract for Shah Deniz platform in Caspian Sea

BP Exploration (Shah Deniz) Ltd. has awarded KCA Drilling Ltd. a contract for the front-end engineering design of a proposed platform drilling facility for the Shah Deniz development in the Caspian Sea off Azerbaijan.


By the OGJ Online Staff

HOUSTON, May 1 -- BP Exploration (Shah Deniz) Ltd. has awarded KCA Drilling Ltd. a contract for the front-end engineering design of a proposed platform drilling facility for the Shah Deniz development in the Caspian Sea off Azerbaijan.

The worth of the contract was not disclosed.

KCA will conduct the first phase of the work. The current development scenario involves using a self-elevating drilling and production platform.

BP expects to extend KCA's contract to also cover phases 2 and 3, which include detailed design, construction, commissioning of the drilling facilities, and offshore drilling operations respectively.

Formal award of phases 2 and 3 is dependent on a number of factors, including project sanction.

Shah Deniz is a gas condensate field in 50 m-500 m of water, 100 km south of Baku.

Partners in the project expect to begin drilling operations in the second quarter 2004 and begin first production in the third quarter 2004.

Operator BP holds a 25.5% interest in the project; Statoil AS, 25.5%; State Oil Co. of Azerbaijan Republic, 10%; TotalFinaElf SA, 10%; LukAgip, 10%; Iranian firm Oil Industries Engineering & Construction, 10%; and Turkish company Turkiye Petrolleri AO, 9%.

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