Shah Deniz partners let $1.5-billion subsea installation contract

BP PLC, on behalf of the Shah Deniz consortium, has let a $1.5-billion contract for the transport and installation of the deeper water subsea production systems for Shah Deniz Stage 2 offshore Azerbaijan to the BOS Shelf LLC, Saipem Contracting Netherlands BV, and Star Gulf FZCO consortium.

The scope of work is for management and operation of the Khankendi newbuild subsea construction vessel (SCV) for the transport and installation of the deeper water subsea production systems and subsea structures at all five flanks of the project.

“The new flagship vessel Khankendi, which is currently under construction by Baku shipyard, will provide essential support for the installation of the Stage 2 subsea structures—the biggest subsea production system ever built in the Caspian,” said Frank Wilson, BP’s vice-president for the Shah Deniz Stage 2 marine and subsea program.

“The construction of the Khankendi is making excellent progress with the hull strips and bow block already integrated,” he added.

The contract scope is planned for completion by the middle of 2022, with a 5-year option to extend the contract to cover the installation of remaining trees, flying leads, and jumpers at the east-south, east-north, and west-south subsea flanks between 2022 and 2027.

The scope also includes the reactivation of the pipe-lay barge Israfil Huseinov and the second pipe-lay installation campaign of the deeper water flow-lines in 2019.

Work on Shah Deniz Stage 2 and South Caucasus pipeline expansion (SCPX) projects continue to move forward with more than 70% of all first gas work across Azerbaijan and Georgia already complete in terms of engineering, procurement, and construction.

The project remains on schedule to start gas production in 2018.

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