Above Left: Safety is one of the highest priorities in operation activities being performed at the Sangachal Terminal. Right: The Central Azeri Compression and Water Injection Platform being installed. This is the first time that this innovative technology is being used in the Caspian Sea.
This unique installation method was successfully completed offshore on April 27th. The platform's offshore hook up and commissioning activities have already begun, and the project remains on target to achieve First Gas from Shah Deniz during the fourth quarter of 2006.
The TPG 500 is a unique achievement for the Caspian. The entire platform, including the legs, was assembled at the Zykh construction yard near Baku. The three legs for the platform and their foundation structures were built entirely in the Zykh 3 area of the yard, and the whole platform was assembled at the quayside of Zykh 4. Only two other platforms of this type have ever been built, both of which are operating in the UK North Sea.
The TPG-500 platform is a large jack-up comprising drilling, production and accommodation for 120 personnel with a total weight of 32,000 tons (topsides 22,000 tons, legs and foundations 10,000 tons). The platform's drilling facilities are capable of drilling wells with a length of over 7 km and with an outreach of more than 3 km, while its production facilities are capable of processing approximately 1 billion cubic feet (28.5 million cm) of gas and 60 thousand barrels (8000 tons) of condensate per day. Gas and condensate from the field will be transported via sub sea pipelines to the Sangachal terminal.
Above Left: The Central Azeri Compression and Water Injection Platform in the evening. Right: At Sangachal Terminal production.
"This is a unique operation in the Caspian," said Mike Skitmore, BP's Vice-President for the Shah Deniz project. "I am proud to say that the team has completed it successfully and, most importantly, safely. It is the culmination of three years of hard work by over 5,000 people involved in the design, fabrication, construction, transportation, hook up and commissioning. I would like to take this opportunity to thank all those who have worked for the project with such dedication in so many countries from Singapore, Norway, France, Germany, USA and Turkey to Azerbaijan," continued Skitmore.
Above Left: Now inhabitants of Nematabad village of the Yevlakh region will benefit drinking artesian water by reserving it in this high capacity water tank. Right: BP and the consortium members involved with them in the BTC (Baku-Tbilisi-Ceyhan) pipeline are involved with community development all along the pipeline. Here is a renovated school in the Duzdagh village of the Yevlakh region.
"I am equally proud that throughout the project implementation we retained our commitment to maximize the local content and train Azerbaijani nationals in support of development of local skilled workforce. What we achieved is remarkable. At the peak of construction activities Zykh employed approximately 3,500 people more than 80 percent of whom were Azerbaijani nationals. Their performance has been exceptional, both in terms of safety and of quality. Prior to sail away the Zykh yard had completed more than 13 million man-hours without a lost time accident. In addition, the project utilized the services of some 257 local companies for provision of equipment, material and other services to the yard. We are now all looking forward to our next and most important milestone, which is the delivery of First Gas to benefit the people of Azerbaijan, Georgia and Turkey".
Linefill to Ceyhan Begins
Linefill and completion of the pipeline are continuing in the Turkish section with focus on the Linefill of the section between intermediate Pigging Station No1 in Turkey (IPT1) - the last facility before Ceyhan and the Ceyhan Marine Terminal.
Oil reached the IPT1 on May 15, 2006, and started to move towards Ceyhan following a few days' stop at this facility. It is currently moving to Ceyhan, filling the last 125km section of the pipeline. This will enable us to load the first tanker at the Ceyhan Marine Terminal by the end of May. The official inauguration of the Turkish section of the pipeline and the Ceyhan Terminal is planned for a later date in summer.
A total of 10 million barrels of crude oil was used to fill the 1,768 km long line running from the Sangachal Terminal near Baku via Georgia to the Ceyhan Terminal on the Mediterranean coast of Turkey. The oil came from the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea.
BTC is a major project, which will make a positive difference by bringing significant benefits to the region. By avoiding the Bosphorus Straits, it will help relieve the inevitable growth in oil related traffic and associated environmental risks, while creating substantial revenues for the transit countries, and will help strengthen economic and political links between Azerbaijan, Georgia, Turkey and the West.
Opportunity into Value
On May 25 in Baku, BP on behalf of its partners announced the winners of the "Best of Business" Local Enterprise Awards as part of their support to local business development. The awards are intended to recognize outstanding local and international companies and business personalities, whose entrepreneurial skills are contributing to the success of BP-operated oil and gas projects. They are also designed to recognize those who have made a lasting impact on the business environment in Azerbaijan.
The initiative is in line with the efforts of BP and its partners to maximize local content in their projects by increasing both the number of companies participating in their contracts, and the value of contracts awarded locally.
BP as the operator of Azerbaijan's major oil and gas development and transportation projects has set an ambitious new target to double the value of contracts placed with Azerbaijan-owned companies within five years. By 2010 BP aims to spend an additional $250 million annually with small and medium-sized enterprises and local joint ventures, bringing the total spend with locally-owned companies to over $500 million a year.
To reach this target, BP and its partners are working to develop a number of other plans as well to encourage the non-oil sector and support enterprise development throughout Azerbaijan to assist the country in diversifying its economy. This along with other initiatives, we believe, will create innovative and transparent practices of support to local businesses.
Above Left: At Sangachal, with two crude oil storage tanks in the distance.
Right: BTC/SCP pipeline consortiums are involved with projects related to building the infrastructure in communities along the pipeline route. Here both water and electricity projects have been organized. A drinking water supply system renovation project was implemented in the Nematabad community with the cooperation of "Save the Children" in the Yevlakh region.
The first "Best of Business Awards" were presented today to the following enterprises and individuals nominated in four categories: (1) STQ 2 was selected the Best HSE Performance Award for its outstanding achievements in safety, health and environmental performance. (2) Jeyhun Imanov Studio received the Young Entrepreneur of the Year for their innovative approach in business performance. (3) Rigblast was announced the Best Employer.
This award is presented to a local or international company, which has demonstrated its commitment in developing the skills and experience of its Azerbaijani workforce. (4) Dalgij was chosen as the Best Company of the Year for its strong business success and commitment to broad enterprise development.
Addressing the awards presentation ceremony in the Park Inn Baku Hotel, David Woodward, BP's Associate President in Azerbaijan, said: "As we enter a period of significant operational activity, when Azerbaijan will be receiving substantial revenue streams from our oil and gas developments, we are placing a higher priority than ever before on Small and Medium Enterprise (SME), with the local enterprise development playing a central role.
Above Right: Central Azeri Compression and Water Injection Platform Topsides sailing away. This marks the start of new oil and gas technology being used in the Caspian.
With our ambitious target to double current spend with local companies by 2010 and having the Enterprise Centre as part of the core BP procurement and supply chain function, it is of particular importance to recognize local and international companies, which are making substantial contributions to enterprise development in Azerbaijan."
The Enterprise Centre, established by BP and its partners in May 2002 in support of local small and medium enterprise development, will continue to act as a focal point for Azerbaijan's leading companies, foreign investors and contractors, trade associations and other groups to support local enterprises and encourage their participation in BP contracts.
"Since the establishment of the Enterprise Centre we have made outstanding contribution to the proactive development of Azerbaijan's economy, enhancing the country's long-term economic stability. Through our projects, which we are undertaking with our partners, we are committed to doing all we can to support the development of a strong and competitive market and to maintain this country as one of the best places to do business," said Mr Woodward.
Back to Index AI 14.2 (Summer 2006)
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