CONSTRUCTION OF THE NEW SEMISUBMERSIBLE DRILLING RIG CONTINUES AT BAKU SHIPYARD
Baku, January 31 - Exxon Azerbaijan Operating Company, LLC (Exxon Azerbaijan), an ExxonMobil subsidiary, and Maersk Contractors announced today that assembly of the main components of the Maersk Contractors’ drilling rig DSS-20 is moving forward at the Baku shipyard and construction is expected to be completed in the third quarter of 2003.
The construction of pontoons, columns, and drill floor components was completed in Singapore, and last summer these components were transported to the Baku shipyard safely and without any incidents. The work at the Baku shipyard would entail the critical step of rig component assembly. As of today, the rig hull has been completed, the drill floor has been erected, and assembly of the derrick is in progress. In addition, testing has begun on some of the installed rig equipment.
The drilling rig contract was awarded to Maersk Contractors in February 2001. Agreements have been signed between Exxon Azerbaijan, Chevron Overseas Petroleum Azerbaijan Limited, Maersk Contractors and the State Oil Company of Azerbaijan Republic (SOCAR) for the use of the rig. The first well to be drilled with this new rig will be on the Exxon Azerbaijan-operated Zafar Mashal Production Sharing Agreement (PSA).
The new semi-submersible rig will be the largest and most powerful drilling unit in the Caspian Sea, capable of operating in water depths up to one kilometer and to drill depths of more than nine kilometers. The rig will accommodate as many as 130 persons on board and will meet full international regulatory requirements.
Drew Goodbread, General Manager of Exxon Azerbaijan, said, “The new rig will significantly improve the drilling infrastructure in the Caspian and we are very proud to play a role in this outstanding effort. Most of the construction work is carried out in Baku, which provides additional employment opportunities for local specialists and companies.”
About 800 Azerbaijani nationals are currently working on construction of modules at the Caspian Shipyard Company (CSC), which is a joint venture of SOCAR, Keppel FELS and LUKOIL. It is expected that approximately 1,000 people will be employed during the peak of the construction process in Baku.
Ray Watkins, Caspian Sea Area Manager of Maersk Contractors, said “The opportunities in the Caspian Sea have encouraged us to move forward on the construction of this new rig, and we are pleased to work with international and Azerbaijani specialists on successful implementation of the pro-ject. The new rig will help meet drilling needs for deepwater PSA areas in the Caspian. The construction is proceeding on schedule, and all parties are co-operating in keeping up with the highest safety standards.”
ExxonMobil has been active in Azerbaijan since 1995 through subsidiaries holding interests the Azeri-Chirag-Guneshli, Araz-Alov-Sharg, Zafar-Mashal, Nakhchivan and Oguz PSAs.
“We at ExxonMobil are optimistic about Azerbaijan’s oil and gas potential, and look forward to continuing our long-term, mutually beneficial relationship with the Azerbaijan government and the State Oil Company,” stated Mr. Goodbread.
For further information please contact:
Exxon Azerbaijan Operating
Company LLC
Maersk Contractors, Baku
Leyla Rzakulieva
Ph. 994-12-98 24 60
Ray Watkins
Ph. 994-12-97 84 51