ENGlobal contracted for Caspian oil line engineering

Offshore staff

HOUSTON -- Caspian Pipeline Consortium (CPC) has awarded ENGlobal an engineering, procurement, and commissioning services agreement relating to expansion of the Caspian oil export pipeline.

The three-phase award involves two contracts, one from the Russian Federation and one from the Republic of Kazakhstan, with a likely total value of around $86 million over four years.

The 900-mi (1,448-km) pipeline presently takes crude from western Kazakhstan to a terminal on the Russian Black Sea coast. Last December, the shareholders and governing bodies of CPC announced a $5.4-billion expansion scheme, designed to nearly double throughput to 1.4 MMb/d by 2015. This was ratified by shareholders in April.

Increasing the capacity will further development of the onshore Tengiz field, which has estimated oil reserves of 6-9 Bbbl.

CPC’s three largest CPC partners -- Transneft, KazMunaiGaz (KMG) and Chevron -- will co-manage the project, which will involve refurbishment of the existing five pump station, installation of 10 new pumping stations, six new storage tanks and the addition of a third offshore mooring point at the Black Sea terminal.

ENGlobal will probably manage engineering and procurement services in the U.S. on a lump sum basis.

05/31/2011

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