Saipem awarded with subsea contract for Shah Deniz field

Saipem vesselSaipem contracted transport and installation of subsea production systems and structures for Shah Deniz gas field in Azerbaijan. The company was awarded with contract together with consortium partners Bos Shelf and Star Gulf at total worth 1.5 billion USD under the Shah Deniz Stage 2 Master Agreement by BP. The contract will be commenced in 2017 and will last for five years with possible extension operations for another five years. Saipem has share of more than 1.3 billion USD into the project, which makes the contract very important for the company under the bad environment of offshore oil markets.

The scope of contract includes transport and installation of subsea production systems and structures, as well as laying of fiber optic cables and 90 kilometers of pipelines. For operations in contract will be employed the newbuild subsea construction vessel Khankendi, which will provide SCV diving support, remotely operated vehicle (ROV) support and marine base management.

Shah Deniz gas field is the largest natural gas field, located on 90 kilometers off Azerbaijan. It is situated in the South Caspian Sea in water depths from 75 to 550 m. The field covers approximately 860 sq km. Shah Deniz field is operated by BP which has a share of 28.8%, while other partners include TPAO (19%), SOCAR (16.7%), Petronas (15.5%), LUKoil (10%) and NIOC (10%).