History of Baku Deepwater Jackets Factory Yard

At the end of 60’s the oil production reached its powerful development.

“THESE PROJECTS MIGHT HAVE NOT BEEN ACCOMPLISHED WITH SUCH A SUCCESS IF THIS PLANT WAS NOT BUILT 25 YEARS AGO IN AZERBAIJAN”

I. ALIYEV
President of the Azerbaijan Republic

24.11.2003

At the end of 60’s the oil production reached its powerful development. Geological explorations provided in Azerbaijan Sector of the Caspian Sea, revealed the existence of big oil resources in parts of the sea with water depth over 100 meters. Development of such depths required construction of a factory which would manufacture supporting structures for stationary offshore platforms. On the personal initiative and insistence of our all-nation leader Heydar Aliyev, the USSR Council of Ministers issued Decision No. 589 dated 19 July 1974 on the construction of a factory manufacturing supporting parts for deepwater structures.

In 1978 the construction of Baku Deepwater Jackets Factory was commenced.

Considering the specific importance of this complex both for the republic and the whole union, a specialized headquarter was set up from the early days of the project.

Due to care and personal control of H.Aliyev, the first stage of production capacity of Baku Deepwater Jackets Factory was brought to operation within a very short term, i.e. in 1984.

According to the initial design Baku Deepwater Jackets Factory consisted of four zones:

1 ZONE – Factory’s engineering – administrative building, central laboratory, factory club, canteen.

2 ZONE – Basic production buildings and facilities – pipe rolling and welding, node preparation, painting and deck assembling shops, support and service shop building, steel storage, etc.

3 ZONE – Skidways, assembly and installation areas

4 ZONE – Warehouses, power supply facilities

Overall area of the factory was 315, 57 ha; coastal area- 200 ha.

Total area of shops, building and structures was 193722m2, including

– production shops – 137320 m2
– open assembly areas – 18800 m2
– auxiliary shops – 20882 m2
– factory storages – 16720 m2

Production capability of the enterprise was of universal character and had any opportunities for fabrication of various supporting blocks and jackets and also preparation of their deck structures for up to 200 meters sea depth.

In addition, the factory produced high quality welding electrodes and performed pipe painting works. Beginning from the commencement of their production activity, factory skidways (4 skidways with overall length of 420 meters) had all possibilities and conditions for the high quality assembly and launching of stationary offshore platform jackets.

Beginning from 1984, construction of stationary offshore platforms for the depth up to 200 meters is carried out on skidways of Baku Deepwater Jackets Factory.

During the term passed, i.e. before the signing of the “Contract of the Century”, 10 stationary offshore platforms for the water depth ranging from 100 to 153 meters were constructed in Baku Deepwater Jackets Factory and launched into the sea.

4 Stationary Offshore Platforms
5 Jackets for Gunashli field
1 Jacket for Chirag field.

By the collapse of the USSR and severance of economic ties of Azerbaijan with other regions and suspension of funding of construction caused a big economic crisis in the field of oil industry in 1992-94, as was in other areas of the economy of the country.

“The Contract of the Century” became an integral part of the new oil strategy.

“Contract of the Century” signed in Gulustan Palace on 20th September 1994, with 11 giant oil companies (“Amoco” , “Unocal”, “Pennzoil”, “Exxon”, “British Petroleum”, “Ramco”, “Lukoil”, “Statoil”, “Turk Petrollari”, “Delta” and “Itochu”) representing 7 countries of the world played a key role in ensuring the economic development of the country. 27 oil and gas contracts signed with 43 foreign companies within the period passed from that historical days turned Azerbaijan to a centre of energy projects of an international level, providing the economic power of our country and enhancing its international authority.

The “Contract of the Century” turned into a reality within a very short term. Production and transportation of early oil to world market was a great historical event.

Numerous oil and gas fields were revealed. Resources and capabilities of foreign oil companies were involved to development of national economy.

Signing of the “Contract of the Century” turned a new page in the life of Baku Deepwater Jackets Factory, activity of factory revived again. After the signing the contract, all necessary preparatory works commenced to meet the contractual requirements.

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Modern oil processing facilities and heavy tonnage crane vessels, as well as floating drilling units like “Dada Gorgud”, “Istiglal” and “Gurtulush” were put under operation.

Baku Deepwater Jackets Factory, holding its praiseworthy place in implementation of the “Contract of the Century”, achieved greater success in projects related to the 1st, 2nd and 3rd Phases of Full Field Development of the Caspian oilfields.

Production sharing agreement was signed between the foreign oil companies and the State Oil Company of the Republic of Azerbaijan for joint development of the “Azeri” and “Chirag” fields located in the Azerbaijan sector of the Caspian Sea with estimated oil resources exceeding 500 million tons.

In the third quarter of 2001, the Contract of the Century entered into its decisive stage. A program for “Azeri” and “Chirag” fields and the deep portion of “Gunashli” field was developed on August 30, 2001 and decision for commencement of its first stage – “Phase1” project was adopted.

After adoption of the decision, foreign oil companies held their course to Baku Deepwater Jackets Factory named after Heydar Aliyev, well aware of its design capacity. In compliance with the 1st, 2nd and 3rd Phases of the “Contract of the Century”, the construction of jumbo structures was performed in two construction sites.

Construction of jackets was performed with success in cooperation with “BOS Shelf” LLC joint venture established by Baku Deepwater Jackets Factory and “Star Gulf FZCO” company. BOS Shelf started its activity in the yard in 2001 and since that time has developed one of the largest facilities in the Caspian Sea. Tremendous works begun in 2001 came to completion at the end of 2007. Now it has the largest fabrication workshops in Azerbaijan. All equipment have been refurbished in the workshops and erection pad by “BOS Shelf”.

It was that day of signing the “Contract of the Century” which laid a foundation for all these achievements.

President Heydar Aliyev having considered the significance of such a historical date issued his Decree dated August 16, 2001 according to which the 20th of September is yearly celebrated as a professional holiday of the Azerbaijani oil workers.