NORWEGIAN group Aker Solutions has been awarded two key contracts, in partnership with Saipem, from Agip KCO, operator of the Kashagan field, on behalf of the North Caspian Operating Company (NCOC).
Aker said the value for its share of the hook-up work of the Phase I development of Kashagan was $1.6billion, proof that large contracts were still being won despite the recent oil-price scare.
One contract covers offshore hook-up, commissioning assistance, onshore prefabrication, all logistic support and inshore hook-up work. The other embraces engineering and job-carding for prefabrication and installation and vessels preparation.
The contracts will be split into separate work packages, as has been the case for the early work on this field development. Aker Solutions’ work is scheduled to be completed by the end of 2011, with further ongoing commissioning assistance in 2012.
Simen Lieungh, president and CEO of Aker Solutions, said of the double win: “I am very pleased to announce that we have signed the hook-up contracts for the Kashagan. It is a significant milestone for Aker Solutions’ international operations and demonstrates our strong foothold in the Caspian region. We have played a significant role in developing this field since 2004 and these hook-up contract awards demonstrate that we have succeeded in actively positioning ourselves for this target project in one of the world’s richest regions of natural resources.”
The awarded hook-up contracts are the follow-ups of the letter of intent and preliminary agreements signed between Agip KCO, Aker Solutions and Saipem in March, 2007, for the early work activities for the hook-up.
The contracting party from Aker Solutions is Aker Solutions Contracting for the field hook-up contract and Aker Engineering and Technology for the engineering and job-carding contract.
The multibillion-barrel Kashagan field, 80km south-east of Atyrau, in the northern Caspian Sea, is the first large-scale development offshore Kazakhstan.
Eni’s Agip-KCO is the operator for the North Caspian Operating Company, with 16.81% interest. Partners comprise ExxonMobil (16.81%), Shell (16.81%), Total (16.81%), Kazmunaigas (16.81%), ConocoPhillips (8.40%) and Inpex (7.56%).