TODAY.AZ / Business

Two major contracts penned under Shah Deniz project

10 April 2014 [15:40] - TODAY.AZ
By AzerNews

The Shah Deniz consortium has awarded a new contract within the project on the second stage of development at Azerbaijan's giant Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea.

The contract for the fabrication of jackets for the two planned offshore platforms, pin piles, and sub-sea structures was awarded to the consortium that consists of BOS Shelf LLC, Saipem Contracting Netherlands B.V., and Star Gulf FZCO, BP said on April 10.

The $750 million contract includes the construction of two eight-legged single batter jackets, each 110 meters high. The jackets will weigh 13,400 and 12,300 tons, including the flotation tanks.

The contract also includes the fabrication of 2,300 sub-sea structures with a total weight of 30,000 tons. The sub-sea fabrication includes eight sub-sea isolation valve structures, ten flow-line termination assemblies, 80 walking anchors, 100 sub-sea tie-in piping spools, 100 pipeline crossing supports, 1,000 concrete mattresses, and 1,000 tons of current transfer zone foundations.

All construction and fabrication work under this contract will be undertaken at Azerbaijani state energy company SOCAR's Baku Deepwater Jacket Factory named after Heydar Aliyev using local resources, including workforce and construction yard facilities.

Fabrication activities are expected to be completed in 2017.

Gordon Birrell, BP's Regional President for Azerbaijan, Georgia, and Turkey believes that the use of this technology in Azerbaijan will open up new opportunities for oil and gas development.

"This contract underpins our plans to deploy sub-sea production technology in the Caspian Sea for the first time," he said.

The contract is awarded under a Master Agreement for the fabrication, transportation, and installation of offshore facilities - jackets, pipelines, and sub-sea structures - for the Shah Deniz Stage 2 project.

The Shah Deniz consortium has recently awarded a $394 million contract for the supply of sub-sea production systems to FMC Technologies Inc.

The scope of work under this contract includes the supply of equipment for the first two production clusters consisting of sub-sea manifolds, associated controls, and connection components. Activities under this contract are expected to be completed in 2017.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The cost of the second phase of development is estimated at $25 billion.

Within the second phase of development, some 16 billion cubic meters of gas is planned to be produced; six billion of this gas will be transported to Turkey and ten billion to Europe.

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