Saipem and partners secure Shah Deniz 2 dealNews // May 5, 2016
Saipem and its consortium partners Bos Shelf and Star Gulf have been awarded call-off 007 under the Shah Deniz Stage 2 master agreement by BP, on behalf of the Shah Deniz partnership. The total value of the contract is approximately US$1.5 billion (Saipem's share isapproximately US$1.3 billion), with a duration of five years plus a possible extension for a further five.
The Shah Deniz field is located 90km offshore Azerbaijan in water depths from 75m to 550m. The scope of work of the call-off refers to the transport and installation of subsea production systems and subsea structures, laying of fibre optic cables and production umbilicals, laying of 90km of pipelines, the activation, crewing and operations management of a newbuild subsea construction vessel Khankendi, diving support for the vessel, remotely operated vehicle (ROV) support and marine base management post-2017. Saipem has been involved in the Shah Deniz Stage 2 project since 2014.
Stefano Cao, Saipem CEO, said: “We are delighted to have secured this major award, which enables us to continue and consolidate our 20-year relationship with BP and Socar in Azerbaijan and to put our people and technologies at their disposal for the timely and efficient delivery of Shah Deniz Stage 2. This award also further strengthens Saipem’s key role in the construction of the Southern Gas Corridor where the company has a total of four contracts, in the upstream segment and in gas transportation infrastructure both onshore and offshore.”