Turan Drilling & Engineering scoops more work with BP in Azerbaijan
Turan Drilling & Engineering Company, a KCA Deutag and SOCAR AQS company, has been awarded a contract amendment to manage procurement, maintenance and warehousing activities by BP’s subsidiary in Azerbaijan.
The agreement, effective 15 June 2020, was awarded to Turan Drilling & Engineering by BP Caspian Sea Exploration Limited.
KCA Deutag said on Wednesday that the company would manage the SAP maintenance system, wells procurement activity, inventory, storage, and warehousing for the BP Global Wells Organisation in Azerbaijan.
To support the work on the contract, Turan Drilling & Engineering employed an additional 71 people, 69 of whom are Azerbaijani nationals.
The amendment has a value of up to $120 million and applies to the contract awarded by BP to Turan Drilling & Engineering in April 2019 for the operations and maintenance of seven platform drilling rigs operated by BP in the Caspian Sea according 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 five years with two one-year extension options.
The initial contract value stands at approximately $500 million for the firm period or $700 million including all options.
Bob Petrie, general director at Turan Drilling & Engineering, said: “We are delighted that BP has demonstrated its faith in Turan Drilling & Engineering, by broadening the service we provide in Azerbaijan to include procurement activities. This shows our ability to offer value at, and beyond the rig site, providing solutions for customers across their operations”.
As for the JV, it was formed in July 2018. It is jointly owned by the two companies and combines KCA Deutag’s expertise as a drilling and engineering contractor with SOCAR AQS’s knowledge, experience, and infrastructure in the Caspian region.