Contractors of large energy project to be determined in Azerbaijan in first half of 2013

Oil&Gas Materials 25 December 2012 16:56 (UTC +04:00)

Azerbaijan, Baku, Dec. 25 / Trend E. Ismayilov /

The preliminary figures of choosing the contractors for construction work within the second phase of developing offshore gas condensate "Shah Deniz" field in the Azerbaijani sector of the Caspian Sea will be announced in March, a source on the oil and gas market told Trend today.

A source said that the date of launching the tender procedure is unknown, but most likely it must occur in January 2013 for all operations to comply with the pre-determined schedule.

"I think the preliminary, rather than official data will be obtained in March concerning the company which will be involved in the construction work," the source said.

In case of launching a tender procedure in January, the winners of the tender will be announced in May and June. The construction work may be launched in July.

A source said that this project is very large and important for Azerbaijan, and therefore all of the technical proposals must be defined and calculated accurately and clearly, and bids must meet the conditions that will be set.

Previously reported, according to the preliminary work schedule, the gas export from the second development stage of Shah Deniz could start in April 2017.

According to schedule, the construction of two platforms, planned for the second stage of field development, must be completed by 2015. The platforms and necessary infrastructure should be ready for exploitation in October 2016.

Project plans include construction of 2 new sea platforms, connected to each other by bridge, two installations for drilling 26 underwater wells, construction of a 500-kilometer underwater pipeline at a depth of 550 meters, additional export facilities in Azerbaijan and Georgia, and broadening of the Sangachal terminal.

Gas produced during the second phase is considered as the main source for the Southern gas corridor projects, in particular, Nabucco West and TAP (Trans Adriatic Pipeline). Azerbaijan plans to export 10 billion cubic metres of gas per year to Europe within the second phase of Shah Deniz field development.