BP's exploration drilling campaign in the Shallow-Water Absheron Peninsula (SWAP) licence off Azerbaijan has been delayed until next year, writes Kama Mustafayeva.

A source said: “We planned to spud the first well this year provided that a drilling unit would be available for that. Now we know that it will not be until next year.”

BP plans to use the Kazakhstan-flagged jack-up Satti for the drilling campaign, but has yet to sign a formal contract.

The rig has to be activated and upgraded with additional equipment before it can start drilling. According to one rig watcher, this work is at a preliminary stage and is expected to be completed in six to eight months.

“Satti will likely not be ready before March next year as it requires the procurement, installation and testing of equipment to meet all requirements and to be accepted by BP,” the source said.

The rig will get a third mud pump, an additional diesel generator, a remote-controlled roughneck and an automated pipe-racking system, according to the upgrade plans.

The derrick and hoisting equipment capacity is planned to be increased to 1.5 million pounds, it is understood.

Also, the blowout preventer's rating will be increased from 10,000 pounds per square inch to 15,000 psi, and its accommodation capacity will be increased to a minimum of 92.

The jack-up was delivered to Baku in June.

However, due to unresolved commercial issues between Azerbaijan's Caspian Drilling company (CDC) and the rig owner, state-owned KazMunaiGas (KMG), upgrade work started only recently.

Sources did not reveal the upgrade cost, saying only that it is "quite significant", with KMG funding the work.

Azerbaijan's state-run Socar and KMG agreed that Socar subsidiary CDC will upgrade and operate the rig, while KMG will assign its employees for technical support.

Satti was commissioned in early 2017, but has not yet drilled offshore.

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BP's Azeri drilling delayed