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Performance driven award

The 2008 winner: The ACG mega-project

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The 2008 winner

Team:
The ACG mega-project: building BP's reputation and fuelling Azerbaijan's economy

Business segment:

Exploration and Production

Country:
Azeraijan

Summary

Production from Deep Water Gunashli began in April 2008, signalling the successful completion of the Azeri-Chirag-Gunashli mega-project. For BP, ACG is helping to restore the company’s credibility in the delivery of mega oil and gas projects to the world market. For Azerbaijan, aside from billions in oil revenue, it means jobs created and sustained over six years for 15,000 local workers trained to international standards

Challenge

The Azeri-Chirag-Gunashli (ACG) field, located approximately 130km offshore in the Caspian Sea, has an estimated 5 billion barrels of recoverable oil. Known as the ‘Contract of the Century’, it became Azerbaijan’s first offshore production sharing agreement, aiming to fuel economic growth and restore the country to its position of global industry player.

The work required to develop ACG was unprecedented. It covered engineering, fabrication, construction, installation, and commissioning of offshore drilling and production facilities, gas compression and water injection facilities, subsea facilities, subsea oil and gas pipelines, and expansion of the Sangachal terminal.

Solution

The BP-led project team used an innovative organisational model based on the principle of programme execution, rather than multiple single projects. To deliver the project, BP trained 15,000 local workers to international standards. Use of standardized equipment and ‘cloned’ design systems reduced the build time for fabrication by over seven months resulting early start-up of production for each phase.

Production climbed from 400,000 barrels per day after Phase 1 to 800,000 after Phase 2. Phase 3 will take production capacity to over one million barrels of oil per day, a record for Azerbaijan.

Benefits

ACG sets the benchmark for rigorous project management and proves that 'standardization underpins success’. Beyond the revenues generated and the energy supplied, ACG enhanced the local infrastructure, developed a high quality workforce, fostered local supply of materials and services, and invested in communities. It introduced new technology and international standards in production, pipeline operations, maintenance, control, and safety management. Finally, it left a mark of confidence that Azerbaijan has the capability to build one of the world’s largest oil field developments.
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The 2007 winner

Team:
BTC delivers Mission Impossible – Achieving the biggest collective effort in BP’s history

Business segment:

Exploration and Production

Country:
Azeraijan

Since its opening, the BTC pipeline has achieved unprecedented levels of performance and world-class efficiency. By the end of August 2007, the pipeline transported 200 million barrels, and in September the 250th tanker left Ceyhan. In addition, BP Azerbaijan has operated safely for two years without a DAFWC (day away from work case), created strong community relationships and committed to industry-leading reporting transparency.
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