£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 

Name
Email
  Ctrl + Enter

Most Read

Plans revealed for Major £2bn Tidal Barrage

Plans revealed for Major £2bn Tidal Barrage

Plans have been revealed for a £2bn tidal barrage across The Wash, a bay in East Anglia between Lincolnshire and Norfolk, which will feature the world’s first tidal energy-powered deep sea container terminal, act as a flood defence and have rail and road elements.   The 17.7km

Balfour gets go-ahead for £200m A57 Link Roads

Balfour gets go-ahead for £200m A57 Link Roads

The Government has given the green light for a scheme to build two new link roads at Mottram Moor as part of plans to deliver Trans Pennine route upgrades between Manchester and the north of Sheffield.   Balfour Beatty, which secured the £108m contract to deliver the scheme two years

South Yorkshire’s tram system on track for £8.6m upgrade

South Yorkshire’s tram system on track for £8.6m upgrade

A £8.6 million funding package for South Yorkshire’s Supertram system has been given the green light by local leaders, to pay for urgent renewal work on the tracks and trams. A further £4.3 million has been approved to make the case to government for significant additional

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.