1. 25 years together with Azerbaijan
Joe Murphy,
Southern Corridor vice president, BP Azerbaijan Georgia Turkey Region
Mr Chairman, Mr Abdullayev, academician Yusifzade!
Ladies and gentlemen!
Good morning and congratulations on the opening of this important annual conference.
This is my first involvement in this conference which we believe is a major milestone in the industry’s calendar and the biggest international energy related event in the region.
This impressive event provides a great opportunity to discuss the progress of the oil and gas industry in Azerbaijan and globally.
BP has always been proud to participate in this event along with SOCAR and other partners. This year we are particularly proud to be here and are pleased to talk about what we have achieved together with the government, SOCAR and partners as we celebrate the 25th anniversary of our partnership with Azerbaijan.
Deepwater Gunashli platform

2. Strong and reliable partnership
As we know, independence was regained in 1991 and three years later, thanks to the vision of the late President Heydar Aliyev, BP and its co-venturers signed the Contract of the Century with the Government of Azerbaijan.
In fact this is when the great journey started and a great history opened. History that demonstrates what can be achieved through close cooperation of all parties involved, through support by and alignment with host governments, through safe, responsible and efficient operations.
What has been achieved since 1994 is extraordinary – for Azerbaijan, for BP and its partners, for the thousands of local people who have worked on our projects, for hundreds of Azerbaijani businesses that have been involved.
Clearly, we have not done all this alone. Throughout, we have had crucial support from the government of Azerbaijan, SOCAR, our partners, contractors, suppliers, and local communities.
None of this would have happened without the vital contributions made by leadership and guidance of President Ilham Aliyev, support by the people of Azerbaijan.
A great partnership to build Azerbaijan’s and our future on!

3. Building a new energy hub
$66 billion
gross total investment
Baku Tbilisi Ceyhan capacity: 1.2 million barrels/day
South Caucasus Pipeline transported 19.9 million m3 of gas/day in 2016
Sangachal -
a world-class integrated oil and gas processing terminal
9 offshore platforms
3 mobile drilling rigs
~1900 km of subsea pipelines
25 vessels involved in operations and project activities
Indeed, we believe in Azerbaijan we have a genuine success story on our hands. This is a story of a unique track record of establishing of world-class operations and major project delivery in the Caspian.
Here are some key facts and numbers to give you a sense of how Azerbaijan has grown over the past 25 years into a strong energy hub and of its strategic position in the region.
Together we have installed the biggest-ever platforms in the Caspian Sea – in total 9 world-class platforms, operating safely, efficiently and reliably for two decades. I’m proud to say that the scale of ACG’s production and processing facilities are among the largest in BP.
We also utilise three mobile drilling rigs in our operations. These rigs, together with our platform rigs are successfully drilling and completing some of the most complex and challenging wells we are executing across the globe and we are proud that all this is being done safely and in a manner that takes care of the environment.
We’ve built and safely operated a huge hydrocarbon processing terminal at Sangachal – one of the biggest in the world with a daily capacity of 1.2 million barrels of oil and around 50 million standard cubic metres of gas. All our offshore platforms are connected through a complex subsea pipeline infrastructure to this terminal which has already undergone one major expansion with a second expansion currently underway.
The terminal is a vital link in Azerbaijan’s oil and gas industry. It conveys oil and gas into the BTC and SCP pipelines – two of the world’s largest industrial infrastructure projects. These link oil and gas fields in the Caspian to the Mediterranean and regional markets. This infrastructure is scalable – and is now being expanded, positioning Azerbaijan, BP and our partners for future value growth and giving us a strategically advanced position in the region.
Overall, onshore we operate three pipeline systems with a total length of over 3,000 km and two marine export systems on the Black and Mediterranean Seas.
A huge production and export machine forming the new enormous Caspian energy hub!

4. Modernizing the Caspian
Subsea development infrastructure
ACG platforms – the biggest structures in the Caspian
Extended reach drilling:
6730 meters step-out from the Chirag platform
Deepest exploration well drilled in the Caspian – 7300 meters in Shah Deniz
As we’ve built this new energy hub we have brought state of the art industry practice to ensure modernisation of the industry in the Caspian.
We have combined our international expertise, including experience in developing super giant offshore fields, as well as the best industry technology, together with Azerbaijan’s local experience and capabilities.
We see ourselves as a technology-based company and both the ACG and Shah Deniz developments are underpinned by this expertise. SD2 is one of the most complex challenges ever undertaken by the global oil and gas industry, representing the largest foreign direct investment made in Azerbaijan, and breaking new ground with the first ever subsea development system to be fabricated and installed in the Caspian.
The list of the Caspian firsts is long but I would like to highlight some that have been significant along the way:
We lead the way in 4D seismic acquisition. We have been using it at ACG to monitor oil, gas and water movement in the reservoir.
We recently used BP-developed Independent Simultaneous Sources (ISS) and nodes technology to acquire 1300 km2 of shallow water seismic at SWAP. This allowed us to acquire data in 7 months instead of spending years.
We have seen the first application of subsea water and gas injection wells in the Caspian.
We have drilled some of the world’s longest wells in the Caspian – An extended reach well from Chirag at 6730m with over 5300m step-out from the platform is the longest ever drilled here. On the slide you can see what this well would look like overlaid on Baku Bay.
We have deployed fibre optic technology to help us monitor the condition of the wells and the flow within them.
We have used industry leading expandable patch technology to deal with wells that have experienced sand issues.
The creation of local facilities capable of building integrated decks and jackets weighing over 18,000 tonnes. The use of underwater hammers used in template installation and topsides float-over installation as one single unit.
These are just some of the modern industry practices, which along with the cutting edge technology that has come to the Caspian region, have significantly contributed to the development of Azerbaijan’s offshore fields.
We also believe in Azerbaijan the industry has lived up to its responsibilities.
Our operations and projects are run to the industry-leading performance standards of safety and environmental responsibility. Our safety record in the region is in the top quartile of the industry. All our projects are executed with minimal impact on the natural landscape. To give one example: in the past two decades we have conducted no less than 110 environmental impact assessments and about 250 offshore, onshore and near-shore monitoring surveys.
Our export system is operating to world standards.  BTC’s safety and reliability record since the first day has been exceptional – a source of pride for Azerbaijan and for us as the operator.

5. Direct benefits to people
$72 million spent on sustainable social investment projects
Building local capabilities
Caring for communities
Education and training
~3000 employees and 24,000+ people involved in projects at peak
Arts, culture and sport
When our industry is involved in such strategic and influential projects, we naturally become part of the fabric of the economy and it is natural that we should play a wider role in society.
So, in addition to being the biggest foreign investor, a safe operator, a long term and reliable partner, BP has also remained a committed corporate citizen of the country, engaging in a wide range of activities that directly benefit communities in our neighbourhood and society at large.
That’s why I am very pleased that our social investment programmes mainly focus on support for education and training, culture and sport, environmental protection, creation of economic opportunities for local communities that have been helped with new skills and new business and employment opportunities.
To date BP and its partners have spent about $72 million on such social and community development projects in Azerbaijan.
Over the past 25 years our operations and projects have created tens of thousands of local jobs. The SD2 and pipeline projects alone provided employment to over 24,000 Azerbaijani citizens at the peak of construction activities.
BP also directly employs around 3000 national staff in Azerbaijan and the majority of them are in senior managerial positions including managers of our world class platforms, terminals and pipelines, and members of BP’s regional leadership team.
I would like to specifically highlight our support for building sporting capability of the country through our partnership with the Azerbaijan National Olympic and Paralympic Committees. We are pleased to be able to support this country’s talented sportsmen and women and national teams.
Just recently we sponsored the 4th Islamic Solidarity Games which Baku hosted. This was a great honour for us to be with Azerbaijan during the Games and we are proud of Azerbaijan’s success and the success of BP’s seven ambassador athletes.

6. Looking to the future
This slide shows that the exciting story goes on and it is very much about the future as well as the past, with great opportunities here.
As operator, our intention is to continue to invest in projects that meet international energy standards.
We will continue to bring the industry’s most complex and advanced technologies and expertise to the Caspian to deliver these projects safely, efficiently and reliably.
We will build on this unique experience and knowledge to successfully deliver our exciting new projects in this basin – ACG’s further development, SWAP, Shafag-Asiman and other potential projects. With our 25 year long track record of successful delivery we are positioned to make these projects a success.
Shah Deniz Stage 2 is clearly today’s as well as tomorrow’s top story, not only for the region but also for the global gas industry. I am pleased to say that the Azerbaijan and Georgia sections of this $28 billion project, of which BP is the operator, are now over 93% complete in terms of engineering, procurement and construction, and remain on target for first gas from Stage 2 in Ongoing work is proceeding on the non BP operated pipelines that will stretch across Turkey, Greece, Albania and Italy to deliver first gas to Europe in 2020.
I hope this presentation has given you a sense of everything we do in this great industry as an investment for the future. And it is an investment we will continue to make, along with our many friends and partners in Azerbaijan and around the world.
We believe we will continue to succeed, and we will succeed together, in a spirit of co-operation and partnership.
ACG PSA until 2024 with potential future development
Shah Deniz PSA extended until 2048

7. Shah Deniz 2 / SCPX progress video
And now I’d like to invite you to watch a short video which will allow you to see visually the progress made by one of the biggest projects in the world - SD2/SCPX, which will deliver gas from the Caspian to Europe for the first time in the history Azerbaijan’s industry.
Thank you!