BP Amoco Section
Gas Export to Turkey
In mid-February 2000,
BP Amoco, on behalf of the Shah Daniz participants, gave outline
plans for the potential export of Azerbaijani gas to Turkey from
the Shah Daniz field in the Caspian Sea.
(left), President of Shah Daniz, Inam and Alov PSAs, with Valeh
Alasgarov (center) of SOCAR visited Georgia in March 2000 to
discuss gas exports from Azerbaijan with Georgian President Shevardnadze
(right) on March 13, 2000.
This followed the successful drilling of the second Shah Daniz
well (SDX-2), confirming the existence of a significant gas condensate
discovery and which underpins the first stage of a development
Andy Hopwood, BP Amoco's Azerbaijan Exploration Business Unit
Leader, said: "The gas memorandum signed between the governments
of Azerbaijan, Turkey and Georgia in Istanbul in November provided
the framework for the export of gas from Azerbaijan. Taken together
with the excellent Shah Daniz drilling results, it provides us
with the confidence to respond positively to the demands of the
"We are presently planning a staged development with a first
stage producing 5 billion cubic meters (bcm) a year, subsequently
rising to possibly 16 bcm a year. There is confidence that the
results of the two wells already drilled, combined with those
of a third well to be drilled later this year, should enable
us to prove first stage resources of 150 billion cubic meters
(5tcf) of gas and 20 million tons (150mmbbls) of liquids. The
Shah Daniz partners will be working with governments to develop
the framework agreed in Istanbul with the objective of delivering
first gas to market in the winter of 2002-2003."
Hopwood added: "Azerbaijan - and Shah Daniz in particular
- is a competitive source of supply for Turkey given its proximity
to the market, the availability of existing infrastructure, and
low development costs. The establishment of a competitive gas
export route from Azerbaijan will build a bridgehead to the Turkish
market and affirm Azerbaijan as an important regional producer
of gas, as well as oil."
Left: A 50-ruble note of 1918 published in
Russian. Note that oil was the center of commercial activity.
At the turn of the 19th century, Azerbaijan produced more than
50 percent of the world's supply of oil. Courtesy: Yagub Karimov.
The first stage concept is based on simple offshore structures
in the shallow water area in the north and east of the field.
Transportation to the Turkish border will be through a combination
of new and existing infrastructure. Detailed engineering is expected
to start shortly.
The SDX-2 appraisal well was drilled to a depth of 5,892 meters,
penetrating three main horizons. The well is now on a comprehensive
testing program and the first of two planned flow tests is underway.
SDX-2 was drilled six kilometers to the south of SDX-1, the original
discovery in July 1999.
A third well (SDX-3) will be drilled later this year to further
delineate the field, with possibly three more appraisal wells
to follow, and the potential for further upgrading of reserves.
The field lies in water depths between 50 meters and 600 meters,
some 70 kilometers southeast of Baku.
On March 4, 2000, BP Amoco Azerbaijan leadership (David Woodward
and Andy Hopwood) met with President Aliyev to convey good news
about the successful drilling of the second Shah Daniz well (SDX-2),
confirming the existence of a significant gas condensate discovery.
They advised President Aliyev of the company's plans for the
potential export of Azerbaijan gas to Turkey from the Shah Daniz
field in the Caspian Sea.
On March 13, 2000, an Azerbaijani delegation led by Valeh Alasgarov,
Chief of SOCAR's Foreign Investments Division, and Rashid Javanshir,
President of Shah Daniz, Inam and Alov PSAs, visited Georgia
to make presentations on plans for the potential gas export from
Azerbaijan. Following the meeting, the President of Georgia made
the following statement: "Georgia's transit potential opens
up new major prospects for the development of fraternal relations
between the two countries."
The Shah Daniz license partners are: BP Amoco (operator - UK),
25.5 percent; Statoil Azerbaijan A.S. (Norway), 25.5 percent;
SOCAR Commercial Affiliate (Azerbaijan), 10 percent; Elf Petroleum
Azerbaijan B.V. (France), 10 percent; LukAgip N.V. (Russia /
Italy), 10 percent; Oil Industries Engineering and Construction
(Iran), 10 percent; and Turkish Petroleum Overseas Company Limited
(Turkey), 9 percent.
Chirag Water Injection Installed
The offshore lifting and installation of the 250-ton water injection
module and 50-ton de-aerator on the Chirag-1 platform was successfully
completed in February 2000. The operation was carried out using
SOCAR's derrick barge Azerbaijan. The equipment will be used
to inject water to safeguard the productive life of the reservoir
by maintaining the field pressure. The water injection system
installation will also enable extension of the plateau production
period. The Chirag water injection system is designed to inject
up to 220,000 barrels per day.
Left: Deaerator vessel installed
on Chirag Platform on February 6, 2000. BP Amoco is the operator
for the project.
GCA-6 Drilling Commences
BP Amoco commenced drilling the sixth appraisal well in the Gunashli,
Chirag, Azeri contract area (GCA-6) on March 21, 2000. The well
is being drilled by the semi-submersible drilling rig Dada Gorgud.
The well is designed to appraise the far eastern part of the
For the first time, the combined Azerbaijan Business Units of
BP Amoco achieved 2 million man hours worked without a single
day being lost through injury. As part of this outstanding safety
record, the Sangachal Terminal has also achieved 1,000,000 manhours
(884 days) without a day away from work case.
Gifts to Baku State
To celebrate the 80th anniversary of Baku State University (BSU),
BP Amoco presented its library more than 300 copies of eight
books published through its sponsorship.
The gifts included the first three volumes of selected world
literature classics translated into Azeri. The works represent
the countries of the companies involved in contracts that BP
Amoco is implementing. One of the most valuable gifts to the
library was a fundamental research work conducted by Elmaddin
Alibeyzade, Doctor of Philology. The research focuses on "Kitabi-Dada
Gorgud", the Azerbaijani people's most ancient epic, whose
1300th anniversary will be celebrated during the Turkic-speaking
Nations' Summit in Baku in early April.
Other books included "Ecological Conception of the Caspian
Sea" (Azeri-English), "Ecological and Geographical
Atlas of the Azerbaijan Republic" (Azeri-Russian), "Wonderful
Wildlife of the Caspian Sea" (Russian-English), prepared
by BP Amoco, and "Archeology of Azerbaijan," written
by the late professor Rashid Goyushov for English-speaking readers.
BP Amoco has also helped upgrade the university library and has
provided it with new computer equipment, furniture and appliances.
Guivami Rahimli, BP Amoco's Community Affairs Officer, was Project
Manager for the university-related events.
Baku State celebrated its 80th anniversary on February 12, 2000.
BP Amoco was invited to honor this major event together with
representatives of Azerbaijan's senior government and state officials
and the public.
New Clinic in Ganja
A new-look MediClub clinic, refurbished and re-equipped by BP
Amoco and MediClub, opened in Ganja in early March 2000. BP Amoco
and MediClub provided funds for the refurbishment of the clinic
to improve patient care. The facility will provide a vital service
to the community as well as to BP Amoco's employees along the
Western Route Export Pipeline.
Photo: Medi-Club, a newly
refurbished and re-equipped clinic by BP Amoco opened in March
2000 in Ganja.
The clinic is housed in the same building used for Ganja's first
medical surgery, set up in 1904 by Khudadat Rafibeyov, the first
Minister of Health of the Azerbaijan Democratic Republic, and
the Governor of Ganja. In addition to financing the renovation,
BP Amoco provided medical equipment and supplies, including an
X-ray machine, artificial ventilator and special hospital beds.
The company has also provided the clinic with an ambulance and
an electricity generator to ensure the clinic has uninterrupted
power 24 hours a day, independent of the Ganja energy supply.
At a ceremony to mark the opening of the improved facilities
it was noted that it is the first private clinic in Ganja. The
clinic will now offer hospital outpatient treatment and an emergency
medical service. The clinic will also carry out surgery and laboratory
analyses. Doctors at the clinic are fluent in English, Azeri
and Russian, and will be supported in their work by consultants
from Baku and Ganja.
Concert Honors Khojali Victims
Left: BP Amoco has created
its own tradition of organizing a Novruz Party for needy children
each Spring. The party is held in the Nizami Cinema.
sponsored the performance of Verdi's "Requiem" at Baku
Music Academy in February 2000 to commemorate victims of the
Khojali massacre as well as all those who sacrificed their lives
for Azerbaijan's independence.
This year, BP Amoco hosted several major Novruz celebrations
for orphans, refugee children and kids from needy families. Nearly
1,500 children between the ages of 5 and 15 were treated to a
colorful spring concert that included the antics of Kechal and
Kosa - heroes of all Novruz festivities. The children also received
gifts, such as traditional Novruz cookies. Many of the children
came to Baku's Nizami Cinema from orphanages and institutions
for the mentally and physically handicapped via BP Amoco-organized
buses, some traveling outside their places of refuge for the
first time in their lives.
(8.1) Spring 2000.
© Azerbaijan International 2000. All rights reserved.
Back to Index AI 8.1 (Spring
AI Home |