BP Caspian Sea Development
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KBR has been awarded a contract by BP, on behalf of Azerbaijan International Oil Company (AIOC), to provide front-end engineering and design (FEED) services for the Chirag Oil Project located in the Azerbaijan sector of the Caspian Sea.

KBR will provide FEED and procurement support services for a single, large drilling platform that ties into the existing Azeri-Chirag-Gunashli (ACG) oil field development infrastructure. The project award marks the next milestone in the Chirag Oil Project development, including an incremental expansion to the existing ACG field development. KBR has been involved with the development of the ACG project since 1995. Work on the project is already underway. Services will be provided through KBR's Leatherhead offices, as well as in Baku, Azerbaijan.

"This award follows successful performances by KBR on ACG Phases One, Two and Three, solidifying KBR’s position as a leading contractor in the Caspian Sea region," said John Rose, President, KBR Upstream. "We are proud of the long-standing relationship KBR has developed with BP on the ACG project over the last 13 years, and we are committed to yet another successful project execution on the FEED phase of the Chirag Oil Project."

Background

The ACG oil field, located in the Caspian Sea 75 miles (120 kilometers) offshore Azerbaijan in 394 feet (120 meters) of water, was first discovered during the Soviet era. Developed in three phases, the ACG field has an estimated 5.4 billion barrels of recoverable oil, with production expected to ramp up to 1MMbopd by 2009.

Partners in the Chirag Oil Project, which is operated by BP (34.1%), include Unocal, 10.3%; SOCAR, 10%; INPEX, 10%; StatoilHydro, 8.6%; ExxonMobil, 8%; TPAO, 6.8%; Devon, 5.6%; ITOCHU, 3.9%; Hess, 2.7%.