A Major Sub-Sea Contract Awarded to Dalgij

11 October 2006

BP as operator of the Azeri-Chirag-Gunashli oil and Shah Deniz gas development projects has recently awarded a major air-diving and Remote Operational Vehicle (ROV) services contract to the local private company Dalgij. 

This $1mln award is the local company's second contract with BP and it builds on the company's competencies and continual hard work to comply with BP's safety and performance expectations. In addition to these direct contracts, Dalgij has been involved in BP operations and project activities through various other diving contractors in the Caspian. 

"ROV and diving are key activities in ensuring the technical integrity of a platform. Therefore, services to be provided by Dalgij are essential", says Samir Taghiyev, BP's Senior Procurement and Supply Chain Management Specialist. 

"To become a BP-approved sub-sea contractor, Dalgij undertook a special two-year programme. We then conducted a review of the company's technical capabilities and supported them through various international accreditations. The company now has a team of local air divers and a number of experienced national ROV pilots. Through all these development efforts Dalgij has become a reliable contractor continuously meeting BP's delivery targets," Taghiyev says. 

In March 2004, Dalgij became a member of the International Marine Contractors Association Diving & ROV Division (IMCA Int.) and had eight local assistant air diving supervisors certified by IMCA in compliance with BP requirements. 

In addition, Dalgij has been accredited by the American Bureau of Shipping and the Russian Maritime Register of Shipping for underwater ship inspection and repairs. This process required both a huge effort from all of the Dalgij management and personnel, and a considerable financial commitment to ensure that they met international standards. 
The company has successfully incorporated BP's rules for safety and quality assurance for diving operations into their own policies. In addition, its offshore workforce has been involved in BP's trainings at the Sangachal Terminal, offshore survival and Helicopter Awareness (HUET) certification. 

Dalgij is the winner of BP's and its partners' Best of Business award as the Company of the Year. 

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%), and Hess (2.7%). 

The BTC Co. shareholders are: BP (30.1%), AzBTC (25.00%), Chevron (8.90%), Statoil (8.71%), TPAO (6.53%), ENI (5.00%), Total (5.00%), Itochu (3.40%), INPEX (2.50%), ConocoPhillips (2.50%) and Hess (2.36%). The parties to the Shah Deniz Production Sharing Agreement are: BP (operator - 25.5%), Statoil (25.5%), the State Oil Company of Azerbaijan Republic (SOCAR - 10%), LUKoil (10%), NICO (10%), Total (10%), and TPAO (9%) 

The SCP Co. funding shareholders are: BP (technical operator - 25.5%), Statoil (commercial operator - 25.5%), the State Oil Company of Azerbaijan Republic (SOCAR - 10%), LUKoil (10%), NICO (10%), Total (10%), and TPAO (9%). 
Notes to Editors: 
BP together with its partners is implementing world-class oil and gas development and export projects in the region. These projects present a great opportunity to make a positive difference to the people of Azerbaijan, Georgia and Turkey. As part of their efforts to achieve this, BP and its partners have set an ambitious new target to double the value of contracts placed with Azerbaijan-owned companies within five years. By 2010 BP and its partners aim to spend an additional $250million annually with small and medium-sized enterprises (SMEs) and joint ventures, bringing the total spend with locally-owned companies to over $500 million a year. This target aims to encourage enterprise development assisting the country in diversifying its economy, as well as creating innovative and transparent practices of support to local businesses. 

The Enterprise Centre established in Baku is the focal point for BP's and its partners' efforts to maximize local content of their business in Azerbaijan. This will happen through increasing both the number of companies participating in their contracts, and the value of contracts awarded locally. To achieve this objective, the Enterprise Centre will work closely with the country's leading companies, foreign investors and contractors, trade associations and other groups to support local enterprises and encourage their participation in BP contracts. 

The Enterprise Centre was first established by BP and its partners in May 2002 in support of local small and medium-sized enterprise (SME) development. 


Further information:
Tamam Bayatly at BP’s Press Office in Baku, telephone: 994 (0) 12 599 4557