BP signs $523 million semi-submersible drilling rig contract on Shah Deniz field

Baku. 20 July. REPORT.AZ/ Denmark’s Maersk Drilling has secured a 5 year extension to a contract, for the Heydar Aliyev semi-submersible drilling rig, from BP.

The contract ensures the Heydar Aliyev will continue drilling in the BP operated Shah Deniz field, offshore Azerbaijan. The current contract was due to expire in May 2016, however this latest deal between BP and Mearsk Drilling, ensures the Heydar Aliyev Semi-submersible will continue through until May of 2021.

The contract is worth an estimated US$523 million, and a valuable win for Maersk Drilling, in what is an increasingly downbeat market for global offshore drilling companies.

Claus V. Hemmingsen, CEO of Maersk Drilling said, “With this contract we continue to build our contract backlog providing further revenue visibility. It is very encouraging that we continue to build backlog in this very challenging market.”

Shah Deniz sits approximately 70km south east of Azerbaijan’s capital, Baku. Shah Deniz contains gas-condensate reserves of around 40 trillion cubic feet (1 trillion cubic meters), Shah Deniz is one of the world’s largest gas-condensate fields, with production levels around 50,000 barrels per day, 10 billion cubic feet per annum.

The Shah Deniz field is a joint venture between BP (28.8%), TPAO (19%), SOCAR (16.7%), Petronas (15.5%), LUKoil (10%) and NIOC (10%), with BP acting as the fields operator.