Saipem has won a new offshore Engineering & Construction contract in Azerbaijan, for a total amount of approximately $1.8 billion.
BP, on behalf of the Shah Deniz consortium, has awarded to the Saipem, Bos Shelf and Star Gulf consortium, a Transportation and Installation contract for the Stage 2 development of the Shah Deniz field.
The field is located 90 kilometers offshore Azerbaijan, in water depths from 75 meters to 550 meters. The scope of work of the contract includes the transportation and installation of jackets, topsides and subsea production systems and subsea structures, the laying of over 360 km pipelines, diving support services and the upgrade of the Pipelay Barge Israfil Huseinov (PLBH), Dive Support Vessel Tofiq Ismailov (DSV) and Derrick Barge Azerbaijan (DBA) installation vessels. The project will be completed by the end of 2017. Commenting on the award, Umberto Vergine, Saipem CEO, said: "The Caspian is a strategic area for the oil and gas industry and we have been working in the region since 1996. We have built a solid and unique presence in the area thanks to our capabilities and expertise in large and complex offshore projects. I'm very pleased that Saipem will be involved in the development of Shah Deniz Stage 2, which will ultimately deliver gas to Europe".
Saipem has also been contracted by South Stream Transport B.V. to provide supporting works relating to the construction of the second line of the South Stream Offshore Pipeline for a total value of approximately €400 million. The entire offshore South Stream project consists of four parallel gas pipelines, across the Black Sea from Russia to Bulgaria, each 931 kilometers long, to be laid at depths of up to 2,200 meters. According to this contract Saipem will perform additional supporting works, including engineering, coordination of storage yards, cable crossing preparation, and connecting the offshore pipeline to the landfall sections through so called "tie ins". The works relating to the construction of the second line will end by the end of 2016. This contract is an addendum to the major contract for the first line of the South Stream Offshore Pipeline project signed on the 14 March 2014. South Stream Transport B.V. is an international joint venture between Gazprom (50%), Eni (20%), EDF (15%) and Wintershall (15%).
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