CONSTRUCTION OF THE DSS 20 SEMI-SUBMERSIBLE DRILLING RIG

From the road overlooking the Bibi Heybet bay, visitors and participants to the 10th International Caspian Oil and Gas Exhibition and Conference in Baku would be able to see the bright lights coming from the derrick sitting on top the semi-submersible rig. This is the DSS 20 Semi-submersible that is currently being built in Caspian Shipyard Company Limited. Such bright lights were last seen 3 years ago, when the same yard was building the Qurtulush Jack up rig which was subsequently delivered in September 2001 (two months ahead of schedule).

The construction of the DSS 20 semi-submersible started with the signing of the contract between Maersk Contractors, Keppel FELS and Caspian Shipyard Company on 1 February 2001. The task was to engineer a cost effective rig jointly designed by Marine Structure Consultants and Keppel FELS and able to operate in water depths of up to 1000 meters and drill to a depth of 9,140 meters. The DSS 20 is a four column semi-submersible rig designed and equipped with drilling equipment suitable for well work-over, exploration drilling as well as development drilling. The design provides for optimal operation capacity with many operation-friendly features and salient safety features.

Delivery of the rig has been scheduled for the 3rd quarter of 2003 and when completed the Maersk DSS 20-CAS-M semi-submersible will be the first Western specification semi-submersible and most technologically advanced rig to operate in the Caspian sea.

The construction of the DSS 20 Semi-submersible rig adopted a similar strategy as the construction of the Qurtulush jack up rig with parts of the rig built in Singapore by Keppel FELS and then integrated with the upper hull constructed in Baku. Though similar in strategy, circumstances surrounding the construction encountered many obstacles.

The first obstacle was the Sept 11, 2001 terrorist attack on the U.S. This incident though far away in New York and Washington, affected cargo and project insurance, logistics management, as well as hindered the mobilization of foreign subcontractors due to the outbreak of hostilities in Afghanistan. The threat of terrorism also meant that extra precautionary security measures had to be implemented as the DSS20 project was perceived to be a potential terrorist target.

With the abatement of hostilities in Afghanistan, a new and bigger uncertainty looms as the world debates and the coalition forces finally invades Iraq. This incident, being fairly close to Baku, necessitates that project materials be sent earlier than needed to ensure that work can proceed without undue holdups in potential blockades. This necessitates building additional warehousing storage, as well as intensification of security against sabotage.

Sandwiched in-between the two incidents of disruption were the worst winter experienced in the last 30 years. The heavy and sudden snowfall in December 2002 causes roads to be impassable, and work had to be suspended for a few days. To the credit of the Baku Administration, no efforts were spared to make the roads safe for transportation of workers and consumables. Nevertheless the bad and inclement weather continued with high winds and low temperatures causing a delay to the erection of the derrick and drill floor equipment.

Notwithstanding adversities and the debugging of a prototype design engineered for the Caspian environment, the oil and gas industry, and indeed, the world, will witness history in the making as the construction schedule is brought back on track with a target for early delivery. This is an attestation of the diligence of the Azeri people and the support rendered by SOCAR and the Azeri Administration. Baku has truly demonstrated its capability to build international class rigs and vessels and must now look to establish its presence in the regional Caspian markets.

To do this, the Administration must work to ease the legal, taxation and customs bureaucratic red tapes to allow cross-border exports without burdening its home-grown industries with uncompetitive costs. Baku can truly be the regional hub of marine and offshore support centre of the Caspian. The launch of a new industry and the established capability of the people and their competency have benefited the nation and must be encouraged to grow.

The ability to deliver on-time, on-budget, to international quality, work safely and adhere to stringent HSE standards, is a source of national pride and in the opinion of the editors, CSC is a true contributor in the development of the oil & gas industry in Azerbaijan, leading to the celebration of a momentous 10th Caspian Oil and Gas Exhibition.