TheAzerbaijani International Operating Company (AIOC) declared that it has 6 contracts within the Chirag oil project, which is aimed at increasing the amount of oil extraction on the Azeri-Chirag-Giuneshli block of maritime oil fields, in the Azerbaijani sector of the Caspian Sea. According to Trend, BP is one of the operators of the block development.
The contracts are worth $814 million.
The Chirag oil project will consist of the following facilities:
1. An underwater bed plate, one stationary bearing block, upper modules consisting of corresponding platform equipment for technological processing, drilling and living.
2. Underwater oil and gas pipelines with corresponding equipment.
The Chirag oil project includes the following contracts:
1. A contract with BOS Shelf (A joint venture of the Saipen group and SOCAR“s factory of deepwater bases named after Heydar Aliyev) to construct the bearing framework. The contract is worth $215 million. The construction will be carried out at the factory of deepwater bases in Baku.
2. A contract with consortium AMEK/Tekfen/Azfen (ATA) to construct the upper modules and drilling facilities. It is worth $340 million and the work will be carried out at the Azfen construction facility in Baku.
3. A contract with Asia Sdn Bhd (Malaysia) to transport and place the bed plate. The project costs $57 million. It will be carried out using a ship belonging to SOCAR.
4. With Applay Leirvik Emtunga (Norway-Sweden) to construct the living block of the platform. The contract is worth $22 million. The transport of the block is planned for the third quarter of 2011. The assemblage will be carried out at Azfen.
5. With Kellog Brown&Root (USA/UK) for engineering projects of sea facilities. This contract is worth $150 million and the construction will be carried out in Baku.
6. With KCA Deutag (USA/UK) to work on drilling modules for the platform. This contract is worth $30 million.
The companies were recommended to make maximum use of local contractors, as a result of which Azerbaijan will cover 30% of the expenses.
