Release date: 9 July 2010
Today in Baku, the Azerbaijan International Operating Company (AIOC) announced the award of six key contracts amounting in total to some $814 million for the development of the Chirag Oil Project (COP) as part of the Azeri, Chirag and deepwater portion of the Gunashli (ACG) field development. These awards follow the project sanctioning in March 2010 by the ACG Steering
Committee of the Chirag Oil Project, which will consist of:
ACG participating interests are: BP (operator – 34.1%), Chevron (10.2%), SOCAR (10%), INPEX (10%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), ITOCHU (3.9%), Hess (2.7%)
The award of these key contracts follows an extensive bidding and negotiation process conducted by AIOC. The process spanned some eighteen months and was based on the experience gained from the previous ACG development projects.
The awarded six key COP contracts are as follows:
These awards maintain AIOC's commitment to optimise the use of Azerbaijan’s local resources. The project is expected to consume around 9 million manhours during construction work with 90% of this work being undertaken in Azerbaijan and of this, around 80% will be carried out by local workforce. Additionally, the contractors are encouraged to make maximum use of local subcontractors and we expect over 30% of the total COP spend to be expended in Azerbaijan.
Further key contracts are currently being finalised and future announcements will follow for the award of subsea pipeline installation and diving works, and the transportation and installation of the jacket and topsides.
Notes to Editors:
The Chirag Oil Project is a $6bn development and is planned to increase oil production and recovery of an additional 360 million barrels of oil from the ACG field through a new offshore facility to be installed between Deepwater Gunashli and Chirag platforms. For the first time in history of the ACG development COP will utilise local resources to the greatest possible extent and all fabrication works will be done in Azerbaijan.
Tamam Bayatly, BP Baku Press office, telephone: +994 12 599 4557