Downhole Products Wins Azerbaijan Contract from BP

BP Caspian Sea Development
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Downhole Products Plc, a manufacturer of specialist oilfield equipment for the international upstream oil and gas industries, said that it has been awarded a contract by BP Exploration (Caspian Sea) Ltd to provide a comprehensive range of specialist casing and cementing accessories for use in the Azerbaijan sector of the Caspian Sea.

The five-year contract, which is valued at US$35 million, requires Downhole Products to supply a full package of their tools, including the company's solid body centralizers and reamer shoes. The specialist equipment will be used as part of well bore casing and cementing operations by BP.

A Long-term Relationship with BP

The award of this major contract follows a successful series of operations carried out by BP Exploration in the Caspian Sea during which they used Downhole Products' range of casing and cementing tools. For the past three years, Downhole Products has been supplying BP Exploration (Caspian Sea) with casing and cementing accessories for well bore casing operations that were carried out on platforms built during Phase One and Phase Two of its construction program, including the Chirag, Shah Deniz, Central Azeri, West Azeri and East Azeri platforms. These operations were especially challenging, considering that several of the wells were extended reach.

Downhole Products' relationship with BP extends beyond Azerbaijan. Since 1994, the company has supplied BP with casing and cementing accessories for its operations in the North Sea, notably for its ERD wells on Wytch Farm, and further afield in South America, Indonesia, Norway and Alaska.

"The award of this contract by BP to supply them with our portfolio of cementing and casing accessories in Azerbaijan is truly outstanding. It is a real testament to the long and mutually productive relationship that we share with BP, not only in Azerbaijan, but throughout the world," said Marcus Gregson Brown, Regional Account Manager for Downhole Products. "This is another opportunity for us to deliver quality, field-proven equipment that will certainly go a long way to reducing operator costs and improving efficiency," he added.

Looking ahead, Downhole Products is confident that it will be in a strong position to extend this five-year contract, which features two one-year options to renew. "The award of this contract compliments the significant growth in business Downhole Products has seen over the last two years, and further increases the requirement for additional quality personnel in all departments at our Aberdeen, UK Headquarters," said Ian Kirk, Director, Downhole Products.

Downhole Products specializes in the design and manufacture of specialist oilfield equipment for the international upstream oil and gas industries. Founded in 1994 in Aberdeen, Scotland, Downhole Products is known throughout the industry for its range of solid-body centralizers and reamer shoes.

With more than $20 million in specialist stock housed at its Aberdeen headquarters in addition to stock located at over 40 strategic sites worldwide, Downhole Products dispatches equipment daily by air, sea and land around the world, as far as the Caspian Sea, Sakhalin Island, New Zealand, the Americas and Africa.

As a leading centralizer design and manufacturing company, most major operators have utilized Downhole Products' range of centralizers and reamer shoes to improve wellbore casing operations and reduce costs by eliminating trouble time.

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