KBR’s Azerbaijan JV wins FEED contract for Absheron field

Nov 23, 2017
3 min read
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KBR, Inc. said that is joint venture with SOCAR was awarded a front-end engineering design contract for the topside of Azerbaijan’s Absheron project.

The platform will be located at SOCAR's Oil Rocks facility and will deliver gas and condensate into the SOCAR network, KBR said in a statement.

This award marks the third award to the SOCAR--KBR Limited Liability Company (SKLLC) joint venture since its inception in mid-2015. SKLLC was formed to help further Azerbaijan's ambition for creating an in-country based engineering company. 

SOCAR and Total signed a framework agreement in late 2016 on the main contractual and commercial principles regulating the program for the first phase of development of the Absheron field.

At the first stage, the field development includes drilling one well at a depth of 450 meters. The extraction will amount to 1.5 billion cubic meters of gas a year, which will fully flow to the domestic market of Azerbaijan, as well as significant amounts of condensate. First gas could be produced in 2019.

SKLLC, a local Azerbaijani company, is built on the combined 110 years of experience between KBR and SOCAR.  The joint venture partners KBR's experience in the Azerbaijan, Georgia, Turkey region and its proven tools, systems and procedures with SOCAR's operational knowledge and experience in the oil and gas sector. KBR has been working in Azerbaijan for over 24 years, with experience and knowledge of local onshore and offshore greenfield and brownfield assets. 

"We are proud to bring the unmatched experience, vision, and leadership of SKLLC to this strategic project," said Jay Ibrahim, KBR's president for Europe, Middle East and Africa. "Azerbaijan is an important market for KBR and our strong Azerbaijani and international team members are dedicated to success for the region."

"Our local engineering capability is growing day by day and currently more than 75 per cent of our team is local Azerbaijani staff," Ibrahim continued.  "We are happy to see positive impacts of this growth on the local engineering market and oil and gas industry and I am confident that SKLLC will be a home for Azerbaijan engineers where they can enjoy working for various projects and deliver many more successful projects for clients in the region," Ibrahim said.

The value of the contract will be booked into the backlog of unfilled orders for KBR's Engineering & Construction business segment in the fourth quarter of 2017.


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