Contract for South Caucasus Pipeline’s expansion signed in Azerbaijan

Photo: Contract for South Caucasus Pipeline’s expansion signed in Azerbaijan 
 / Oil&Gas

Baku, Azerbaijan, May 26

By Emil Ismayilov - Trend:

The consortium for Shah Deniz gas and condensate field's development in the Azerbaijani sector of the Caspian Sea signed a contract with Saipem/Azfen joint venture on May 26 to hold construction works for the South Caucasus Pipeline's expansion.

Speaking at the signing ceremony, BP's Shah Deniz 2 Vice President, Ewan Drummond said 15 major contracts worth over $8 billion were signed as part of the Shah Deniz 2 development.

He added that most of the works under the Shah Deniz 2 project will be finished by 2017.

The value of this contract is $735 million. The start of work is scheduled for January 2015 with mechanical completion of the Georgian section expected by the end of 2016 and the Azerbaijan section by the end of 2017.

The scope of work for this contract includes:

- Construction of a 428 km pipeline loop and associated above ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia.
- Construction of a 59 km second pipeline loop, and associated above ground installations in Georgia.

Partners for the development of the Shah Deniz field are: SOCAR with the share of 16.7 percent, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (9 percent).

A final investment decision on the second phase of Azerbaijani Shah Deniz offshore gas and condensate field's development was made on December 17, 2013. The gas from the field will first go to the European market.

The gas to be produced within the second phase of the field's development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).

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