By Leman Mammadova
Azfen company (joint venture of Turkey’s Tekfen and Azerbaijan’s SOCAR), which is engaged in high-level construction and engineering activities for oil companies, will render new services for the development of oil and gas fields in Caspian basin.
Azfen has inked a contract of $486.3 million with BP for the construction and installation of a new drilling and production platform at the Azeri-Chirag-Guneshli (ACG) block in the Azerbaijani sector of the Caspian Sea.
The 16,936-ton platform is expected to be ready within 38 months, said Tekfen Construction.
Tekfen also seeks to expand its activities in the construction of offshore platforms outside the Caspian Sea, first to the Mediterranean basin, and then to the North Sea.
Tekfen Construction has been providing contracting services to the oil and gas industry in Azerbaijan since 1992.
In Azfen, established in 1996, a 60 percent share accounts for SOCAR, while Tekfen holds 40 percent.
Azeri-Chirag-Guneshli is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years. Oil extraction from the field began in November 1997.
More than $36 billion has been invested into the development of ACG since the original PSA was signed in 1994.
Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.
On September 14, 2017, a modified and redeveloped agreement was signed on joint development and shared distribution of production from the Azeri, Chirag fields and the deepwater part of the Gunashli field (ACG). The new agreement provides for the development of the field until 2050.
ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Equinor - 7.27 percent; ExxonMobil - 6.79 percent; TPAO - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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