Norwegian Subsea 7 S.A. company has announced the award of a substantial contract by BP Exploration for the provision of subsea inspection, repair and maintenance (IRM) services on both the Azeri-Chirag-Gunashli (ACG) and Shah Deniz (SD) fields, offshore Azerbaijan, the company said in a message March 12.
Under the terms of this five year agreement, the scope of work comprises the provision of a Life of Field support vessel, capable of performing inspection, survey, intervention, light subsea construction, surface diving and emergency response services, according to the message.
The Life of field support vessel will be supported by a Baku based onshore project management and engineering team, the message said.
“Services will begin in March 2018 with a project team located in Baku and additional specialist support being provided from i-Tech Services’ operations centre in Aberdeen,” the message noted.
Subsea 7 defines a substantial contract as being between $150 million and $300 million, according to the message.
BP is the largest foreign investor in Azerbaijan's oil and gas sector and the operator of the Azeri-Chirag-Gunashli offshore oil and gas block, as well as the Shah Deniz gas and condensate field.
BP is also a participant of such pipeline projects as the Baku-Tbilisi-Ceyhan and South Caucasus Pipeline.
A contract for developing the ACG field was signed in 1994. A ceremony to sign a new contract on development of the ACG block of oil and gas fields was held in Baku Sept. 14, 2017.
The new ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
The shareholders in the contract are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).