UK-based oilfield services company Expro has secured a four-year contract extension from BP for the $28 billion Shah Deniz Stage 2 project offshore Azerbaijan as per the latest oil and gas industry news.

Shah Deniz Stage 2 project Contract Extension

Under the extended contract, Expro will continue to provide subsea landing string equipment and services to the Shah Deniz 2 gas development in the South Caspian Sea, which entered into production in early July.

The oilfield services company had won a five-year contract in 2014 for the Shah Deniz Stage 2 project for the supply of its Landing String Assembly – High Pressure (ELSA-HP) 15k valves and also its EXPRESS electro hydraulic control systems.

The Shah Deniz Stage 2 project is anticipated to have a production of 16 billion cubic meters of gas per year (bcma) at plateau, which will be incremental to the current production at the Shah Deniz project. Along with the output from the first phase, the total production from the Shah Deniz field is expected to reach up to 26 bcma of gas and up to 120,000 barrels of condensate per day.

BP is the operator of the Shah Deniz Stage 2 project with a stake of 28.8% and is partnered by SOCAR (16.7%), PETRONAS (15.5%), Lukoil (10%), NICO (10%) and TPAO (19%).

To back the contract from BP and also to grow its portfolio in Azerbaijan, Expro has opened a $5 million facility in the country’s capital Baku. The new Expro facility in Azerbaijan will host 30 employees while encompassing the company’s office and workshop space of more than 8,500 m2.

The oilfield services company believes that the new facility in Baku will enable it to offer integrated subsea services to clients in the region, with the capacity to expand more core areas of the business.

Neil Sims – Expro Vice President for Europe CIS region, said: “The investment in our new facilities allows us to grow our presence and deliver the highest quality of subsea services to major clients, including BP. It also allows us to broaden our portfolio offering, leveraging our leading global expertise in well testing and intervention services.

“Our key stakeholders are critical to our success and I would like to thank our employees for their significant contribution to date, alongside our customers, suppliers and broader partners in Azerbaijan. We look forward to continuing our success and delivering an even stronger business for the future.”

  Azerbaijan, Baku, BP, Expro, Neil Sims, Oil and gas industry news, Oil and gas news, Shah Deniz field