The latest contract for the Shah Deniz II gas project in Azerbaijan has been awarded to the tune of $735million.
A consortium of firms, including Azeri firm Azfen and Amsterdam-based Saipem Contracting Netherlands B.V, landed the major win.
The scope of work includes the construction of a 428 km pipeline loop and associated above ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia.
The work, which will be carried out over two years starting in early 2015, also includes the construction of a 59 km second pipeline loop and associated above ground installations in Georgia.
The work was awarded by a consortium led by BP.
Gordon Birrell, BP’s president for the Azerbaijan, Georgia and Turkey, said: “We are pleased that both Shah Deniz phase 2 and SCPX (South Caucasus Pipeline Expansion) projects are moving ahead across all areas.”
Shah Deniz II was given the go-ahead late last year.
The £17billion development will see two new major gas pipelines built – the Trans Anatolian, which will carry the gas across Turkey, and the Trans Adriatic which will bring it through Greece and Albania to Italy.
New infrastructure will also be built in Bulgaria, with the existing South Caucasus pipeline through Azerbaijan and Georgia being extended. Two new platforms will be built in the Caspian Sea.
The project will access up to 16 billion cubic metres of gas per year, piping it more than 3500k to provide energy for European customers.
It will also produce up to 120,000 barrels of condensate per day – more than double the current output from the field.
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