Operating In The Caspian Environment
Authors: Kristoffersen B. , Rogers L. 
Published: December 2007

The Azerbaijan International Operating Company (AIOC) is currently developing oil production from three oil fields in the Caspian Sea. The activities are guided by a comprehensive Environmental Management System adopted to the uniqueness of the Caspian and the historical and political situation in Azerbaijan. The paper discusses the challenges of operating in the Caspian region with a focus on local involvement connected to environmental literature data review and environmental impact assessment. Local involvement and training is concluded to be one key to success for operations in an environmental sensitive region like the Caspian.

Introduction

On September 20th 1994 the State Oil Company of the Republic of Azerbaijan (SOCAR) signed a production sharing contract with a consortium of 11 foreign oil companies from six nations for the development of three major oil fields in the Caspian Sea. The agreement (PSA) sets out a work programme for the oil development undertaken by AIOC which is a partnership between the foreign oil companies and SOCAR. The mission of AIOC is to develop and produce oil and gas from the Azeri and Chirag fields and the deep water portion of the Gunashli field in the Caspian Sea and deliver oil to Azerbaijan and export markets. The three fields are located approximately 192 km off the coast of Azerbaijan, beneath water depths of 150 to 240 metres, and they have reserves estimated at 540 million tonnes of oil.

The Minimum Obligatory Work Programme (MOWP) of the agreement focus on a number of activities in preparation for the earliest possible production of oil and for the main oil development. These include 3 - D seismic surveys, environmental surveys, preparations for and drilling of three appraisal wells in 1996, and a technical evaluation of the Chirag - 1 production platform to assess its suitability for early oil production in phase 2 of the project. The MOWP also cover considerations of export options for the early oil production.

Based on recommendations from phase 1 studies, it is recently taken a decision to produce oil from the Chirag field, starting by autumn 1997. This Early Oil Project covers the upgrade of the Chirag - 1 platform, drilling of development wells, construction of an offshore oil pipeline and construction of an oil receiving terminal. It is also decided to build/upgrade an oil pipeline to the Russian border for further export of oil to the Black Sea via the oil transportation systems in Russia.

Status of the Environment

The Unique Caspian. The Caspian Sea is the largest enclosed water body in the world. It is located on the border of Europe and Asia occupying a deep continental depression within the largest catchment basin in Europe. The countries which border it are Russia, the Republic of Kazachstan, the Republic of Turkmenistan, the Republic of Azerbaijan and the Islamic Republic of Iran.

The Caspian Sea is one of the few water bodies in the world where the water level is lower than the level of the oceans. There are significant fluctuations in level in the short and long term and over the last 500 000 years the Caspian has transgressed four times. The maximum peak of the most recent transgression took place about 8,000 years ago when the sea level was around -19 to -21 m relative to Baltic Standard Datum. From 1882 to 1978 there was fall in level by a total of 3 m but since 1978 there has been a rapid rise of more than 2 m with disastrous consequences for its bordering countries (Fig.1).

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