KCA DEUTAG Wins Contract from BP for Shah Deniz Work

KCA DEUTAG has been awarded a substantial, three-year contract, with two optional one-year extensions, for the provision of ad-hoc snubbing services on the BP-operated Shah Deniz Gas Export Project, which is expected to become operational in the Azerbaijan sector of the Caspian Sea in 2006.

KCA DEUTAG, which won the contract by competitive tender, will be supported by, and work in conjunction with, International Snubbing Services Inc. (ISS) with whom the company has cooperated since 1998. The contract includes the design, engineering and provision of a new build snubbing and pressure control package, field and project management personnel.

Ian Lane, KCA DEUTAG Director, Engineering Services, said: "This contract represents a significant step forward for KCA DEUTAG in its provision of drilling and work-over related services as well as further developing KCA DEUTAG's relationship with ISS.

"This award concludes nearly four years of close involvement with the Shah Deniz parties (BP (25.5%), Statoil (25.5%), SOCAR (10%), LUKAgip (10%), NICO (10%),Total (10%), and TPAO (9%)) regarding the intervention options on the Shah Deniz platform. It compliments KCA DEUTAG's existing role on the Shah Deniz project, which includes the provision of detailed design, technical support to out and in-country fabrication, and commissioning support, as well as being the platform drilling contractor."

KCA DEUTAG is the leading platform drilling contractor in the Caspian region. The company has operations in Baku, Azerbaijan, and Atyrau Kazakhstan, and has more than eight years continuous operating experience on the BP/AIOC Chirag field.

Currently KCA DEUTAG is running an ERD (Extended Reach Drilling) program on the Chirag platform for the Azerbaijan International Operating Company (AIOC) operated by BP, and this year commenced drilling operations on the Central Azeri platform for AIOC. In addition, KCA DEUTAG is involved in a range of major EPCD (Engineering, Procurement, Construction, Drilling) projects in the region – BP-operated Shah Deniz, the Azeri-Chirag-Gunashli (ACG) West/East Azeri and ACG Phase 3.