Two contracts worth $1,972 billion signed within Shah-Deniz-2 project

The Shah Deniz partnership is pleased to announce that it has awarded two major construction contracts for Stage 2 development of the Shah Deniz gas field in the Caspian Sea.  This follows the final investment decision for the Stage 2 development signed in Baku on 17 December, reported BP-Azerbaijan.  

The first contract is for the construction and commissioning support of the Shah Deniz Stage 2 onshore terminal facility at Sangachal near Baku. This contract has been awarded to Tekfen-Azfen which is an alliance between Tekfen Insaat ve Tesisat A.S. and Azfen JV. The scope of work for this contract includes:

1) construction of the main gas and condensate processing facilities at the Sangachal terminal; 

2) gas, condensate and MEG pipeline installation from the offshore pipeline beach landing site to the terminal facilities;

3) brownfield works in the existing Sangachal Terminal. 

The value of this contract is $998 million. The work under this contract is planned to commence in January 2014 with completion expected in 2018.  

The second contract is for the fabrication, load out and offshore hook-up and commissioning of the topsides units of the two Stage 2 platforms – Production and Risers platform (SDB-PR) and Quarters and Utilities platform (SDB-QU). This contract has been awarded to the AMEC-Tekfen-Azfen (ATA) consortium which is comprised of AMEC MMC, Tekfen Insaat ve Tesisat A.S. and Azfen joint venture. Both topsides units will be built at the ATA fabrication yard in Bibi-Heybat near Baku. The value of this contract is $974 million. The construction works under this contract are also planned to commence in January 2014 with the completion expected in 2018.

* The Shah Deniz co-venturers are (after recent acquisitions): BP, operator (28.8 per cent), SOCAR (16.7 per cent), Statoil (15.5 per cent), Total (10 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (9 per cent). These percentages include the recent purchases of equity from Statoil by BP and SOCAR, respectively, which are subject to conditions that are expected to be satisfied in 2014 for completion of the transactions.—0--