A drilling and engineering contractor, KCA Deutag has secured two contracts with BP in Azerbaijan. These contracts have a combined value of approximately $360m for the initial contract or $1bn including all options.
The first contract has been awarded to KCA Deutag’s offshore division and is for the operations and maintenance of seven platforms operated by BP in the Caspian Sea pursuant to product sharing agreements. These are the East, West and Central Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations. The initial term is for three years with two three year extension options, the company said.
The second contract has been awarded to RDS, KCA Deutag’s engineering and design specialist, and is for engineering support services on all drilling packages for projects in the Caspian Sea that are operated by BP from the Azerbaijan, Georgia and the Turkey Region. This contract is effective from December 1, 2015 to September 30, 2017 with two extension options of one year each.
KCA Deutag employs approximately 750 people in Azerbaijan, 75 per cent of who are Azerbaijani nationals. The group has been operating in the country since 1995 when it was awarded its first drilling contract and has a twenty year history of working with BP in Azerbaijan providing design, construction support, platform services, commissioning and brownfield engineering services to BP-operated platform drilling operations.
Rune Lorentzen, President of Offshore and RDS said: “These major contract awards build on KCA Deutag’s long standing relationship with BP, and recognise our efforts to deliver both continuous improvement and value to our client. We are committed to providing the highest quality of service and our engineering and design team will work closely with the operations and maintenance team to ensure that we achieve that.”