A consortium between the State Oil Firm of the Azerbaijan Republic (SOCAR) and Saipem SpA has received contracts for a $2.9-billion compression venture within the BP PLC-operated Shah Deniz area on Azerbaijan’s facet of the Caspian Sea, BP and Saipem mentioned.
The compression venture will entry low-pressure fuel and allow the manufacturing of a further 50 billion cubic meters (1.77 trillion cubic toes) of pure fuel and 25 million barrels of condensate, based on BP.
Italy’s Saipem and SOCAR associates BOS Shelf Worldwide FZCO and BOS Shelf LLC collectively received three contracts totaling $700 million, with a $600 million share for Saipem, Saipem mentioned in a press launch Wednesday.
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“Saipem’s scope of labor encompasses the transportation and set up of a brand new 19,000-ton compression platform within the Azerbaijan sector of the Caspian Sea, in addition to the engineering, procurement, building and set up of roughly 26 kilometers of offshore pipelines to attach the brand new compression platform to the present services, and all main everlasting subsea works”, Saipem mentioned.
It expects to begin work within the third quarter of 2026, to be accomplished 2029.
Saipem will deploy the Khankendi subsea building vessel, owned by the Shah Deniz co-venturers, and the pipelay barge Israfil Huseynov, owned by state-owned Azerbaijan Caspian Delivery CJSC.
“Using native naval property and the mixing with Azerbaijani companions verify the dedication to the enhancement of abilities and applied sciences of the nation and the contribution to native content material”, Saipem mentioned.
The contracts will probably be executed beneath final yr’s “framework settlement” between the Saipem-SOCAR consortium and BP that lays out the phrases for Khankendi’s deployment to the Shah Deniz and Azeri-Chirag-Gunashli fields in Azerbaijani waters within the Caspian. The settlement for the vessel lasts three years with a two-year extension choice, as introduced by Saipem July 12, 2024.
All onshore building actions beneath the contracts will probably be executed at BOS Shelf-operated Baku Deep Water Jacket Manufacturing facility, BP mentioned individually concerning the compression contracts.
“The contracts will totally leverage native fabrication yards and infrastructure, participating the native workforce. This as soon as once more demonstrates that Azerbaijan possesses world-class onshore fabrication and offshore set up capabilities that totally meet worldwide requirements”, mentioned Matt Kirkham, BP vp for initiatives in Azerbaijan, Georgia, Turkiye, West Asia and Africa. “Only one instance – between 2026 and 2028, a complete of three,040 tonnes of subsea buildings will probably be fabricated and put in as a part of the SDC venture”.
Based on BP, Shah Deniz started manufacturing 2006 by way of the Alpha platform, whereas Bravo started manufacturing 2018.
BP expects compression involving fuel from Alpha and Bravo to begin 2029 and 2030 respectively.
The Shah Deniz license space spans 858 sq. kilometers (331.28 sq. miles) in waters 50-500 meters (164.04-1,640.42 toes) deep, based on BP. The realm is about 100 kilometers (62.14 miles) southeast of Baku, based on the corporate.
BP operates Shah Deniz with a 30 p.c stake, based on the corporate.
To contact the writer, electronic mail jov.onsat@rigzone.com
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