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Implementation of new Chirag Oil Project starts in Azerbaijan

09 March 2010 12:43 (UTC +04:00)

The project envisages production of 360mln barrels of oil, Rovnag Abdullayev said, and will require investments of $6bn.

The Azerbaijan International Operating Company (AIOC, the operator of the Azeri-Chirag-Guneshli development) plans to begin drilling advance wells as part of the Chirag Oil Project in the third quarter of 2010.

First oil production as part of the Chirag Oil Project should begin in the fourth quarter of 2013.

The project envisages the construction of a new offshore oil and gas platform - West Chirag Production, Drilling and Quarters platform (WC-PDQ) - between the existing Chirag-1 and Deepwater Guneshli platforms; the installation of infield pipelines offshore to connect the new platform to the existing ACG subsea oil and gas pipelines; and the installation of infield pipelines for the transfer of produced water and injection water from the new platform to the nearby Deep Water Guneshli facilities

There are 5 platforms (Chirag, Central Azeri, Western Azeri, Eastern Azeri and Deep Water Guneshli) in the Caspian Sea, at present.

The contract to develop the Azeri, Chirag and deepwater section of Guneshli was signed on 20 September 1994 and entered into force on 12 December the same year. The participants in the project are: BP (34.1% - operator), Chevron (10.2%), SOCAR (10%), InÑ€ex Corr. (10%), StatoilHydro (8,6%), ExxonMobil (8%), TPAO (5,6%), Devon (5.6%) and Hess (2.7 %).