Turan Drilling and Engineering, a joint venture between KCA Deutag and Nobel Oil’s subsidiary – SOCAR AQS, has secured a multimillion-dollar contract with BP, opening the door for the Baku-based entity to take over operations and maintenance of seven platform drilling rigs in the Caspian Sea.
“We are pleased to have awarded this contract to a joint venture between KCA Deutag and SOCAR AQS. As a long-term safe and efficient operator in the Caspian, we welcome the combination of KCA Deutag’s more than 20 years of Caspian experience and international expertise with SOCAR AQS’s deep knowledge of the Caspian and their leadership within the Caspian drilling industry,” Mike Zanghi, a vice president at BP, said at the contract signing ceremony on April 16, according to Trend.
“We hope this new contract will support our continued commitment to safety, development of local capabilities, cost efficiency, competitiveness and global industry standards.”
The value of the contract is estimated around $500 million for an initial five-year period, with the possibility of a two-year extension for an additional $200 million. Turan Drilling and Engineering LLC will be responsible for operations and maintenance of seven platform drilling rigs located in the Caspian Sea, which form part of the Product Sharing Agreements that BP has signed with the government of Azerbaijan. These include the East, West and Central Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations. Drilling operations at the rigs are expected to start in early May.
SOCAR AQS and KCA Deutag established Turan Drilling & Engineering in July 2018, which brings together KCA Deutag's expertise as a world leading drilling and engineering contractor and SOCAR AQS’ knowledge, experience and infrastructure in the Caspian region.
Officials at Nobel Oil Services, SOCAR AQS’s major shareholder, and KCA Deutag say the new multimillion-dollar contract with BP will help develop local capacity.
“SOCAR AQS is a leading integrated drilling contractor with proven capabilities and solid infrastructure in the Caspian region. We are very pleased that our joint venture, Turan Drilling & Engineering, has been awarded this contract, which is a significant milestone in its development. This contract represents client recognition of our joint venture’s capability and capacity to deliver complex projects with the application of the highest industry standards,” said Nasib Hasanov, the founder of Nobel Oil Services, SOCAR AQS’s major shareholder.
“Established as a local company, Turan is well positioned to provide significant cost efficiencies through combining the existing infrastructure, expertise and resources of its parent companies. This contract will also serve the development of local talent for the drilling industry and related services in Azerbaijan,” Nasib Hasanov added.
Nobel Oil Services is a diversified group of companies specialized in the oil and gas industry. Companies operating within Nobel Oil Services provide drilling, construction and project management as well as equipment maintenance, procurement and enhanced oil recovery services.
“KCA Deutag has worked in the Caspian for a number of years now, and we are delighted BP has recognised the strength of our new Azerbaijani joint venture with the award of this substantial contract to Turan Drilling & Engineering," said Norrie McKay, CEO of KCA Deutag commenting on contract.