A BP-led consortium that operates the massive Azeri-Chirag-Gunashli oil field in the Azeri sector of the Caspian Sea has awarded six contracts totaling US$814 million for development of the Chirag project, the consortium said Friday according to Dow Jones Newswires.
Winners include BOS Shelf – a joint venture between Saipem and Azerbaijan state oil company Socar – with a contract value of $215 million, the ATA consortium between AMEC, Tekfen Holding and Azfen with a contract value of $340 million, and Kellogg Brown & Root with a contract value of $150 million.
The Azeri-Chirag-Gunashli BP field, in which BP holds close to 40%, produces 850,000 barrels a day.
Investments into the development of the Chirag project is expected to amount to $6 billion, said the consortium, which also includes Chevron, Statoil, Inpex and Itochu.
There is an estimated additional 184 billion barrels of crude oil reserves in the Caspian region, if proved, it would bring the potential production capacity of the region up to Saudi Arabian levels and would amount to around 15% of world reserves.
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