£436M pipeline construction contract awarded to JV

The Shah Deniz Alpha gas production platform. Photo: BP
The Shah Deniz Alpha gas production platform. Photo: BP

A Saipem/Azfen joint venture has been awarded a $735M (£436M) contract for pipeline construction works on the South Caucasus Pipeline Expansion (SCPX) project, part of Shah Deniz stage 2.

 

Start of work is scheduled for January 2015 with mechanical completion of the Georgian section expected by the end of 2016 and the Azerbaijan section by the end of 2017.

 

The contract will involve construction of a 428km pipeline loop and associated above ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia. The joint venture will also build a 59km second pipeline loop and associated above ground installations in Georgia.

 

Appointed to carry out these works by the South Caucasus Pipeline Company (SCPC) and the Shah Deniz consortium, Saipem/Afzen is a joint venture between Saipem Contracting Netherlands BV and Azfen JV.

 

This award adds to the 14 contracts already announced on the Shah Deniz stage 2 project to add a further 16Bn cubic meters per year (bcma) of gas production to the approximately 9 bcma already being produced by Shah Deniz stage 1.

 

With most of the main contracts already awarded work has commenced on Shah Deniz stage 2 at construction sites in Baku.

 

BP’s Regional President for Azerbaijan, Georgia and Turkey Gordon Birrell said: “We have now awarded most of the contracts for SCPX and associated expansion facilities in Azerbaijan and Georgia.

 

“Both the Shah Deniz stage 2 and SCPX projects are moving ahead across all areas. Work has commenced at the fabrication yards for jackets and decks, as well as at the onshore terminal construction sites. Offshore, drilling activities continue successfully using the Istiglal and Heydar Aliyev rigs with five production wells already completed in preparation for first gas in late 2018,” he added.

Please rate

Comments 

Ctrl + Enter

Most Read

80% of IT projects in public sector delayed due to IR35

80% of IT projects in public sector delayed due to IR35

The vast majority of UK government IT projects are suffering severe delays due to freelancers quitting over the IR35 tax clampdown. In April, the government shifted responsibility for compliance with the IR35 legislation from the individual contractor to the public body or recruitment agency. The

Innogy and Statkraft win contract at 860 MW UK wind power plant

Innogy and Statkraft win contract at 860 MW UK wind power plant

Norway’s state-controlled hydropower company Statkraft and Germany-based energy company Innogy have won a tender in the Contract for Difference (CFD) auction in the UK for their 860 MW Triton Knoll offshore wind power project.The wind farm off the coast of

Is there a post-Brexit salary rise? It looks like it...

Is there a post-Brexit salary rise? It looks like it...

Following the Brexit vote in June last year, many experts predicted that markets would continue to fall leaving salaries stagnating and even falling in some sectors. Data shows the pace at which new jobs are being created is still slower than in 2014, with economic growth affected by the

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.