Another contract on South Caucasus Pipeline Expansion signed
Baku, Azerbaijan, May 22
By Aygun Badalova - Trend:
The consortium of Azerbaijani Shah Deniz field development signed the line pipe coating contract for the South Caucasus Pipeline Expansion (SCPX) project with Bredero Shaw International BV, BP reported on May 22.
The contract for line pipe coating is worth approximately $70 million.
The scope of work includes coating of all pipe to be used for SCPX construction. Bredero Shaw International will coat the pipe externally with three layers of polyethylene material and internally with an epoxy coating. The duration of this contract is 18 months with the first shipment of line pipe planned to arrive in Azerbaijan later this year.
This award adds to the 13 contracts already announced and underlines the overall progress to schedule of Shah Deniz phase 2. With most of the main contracts already awarded work has already commenced at the construction sites in Baku, the report said.
The final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development on December 17, 2013, which also envisages the expansion of the Sangachal oil terminal and the South Caucasus gas pipeline.
The cost of the second phase of "Shah Deniz" development together with the expansion of the South Caucasus gas pipeline which transports gas from the field to Georgia and Turkey, is estimated at $28 billion.
The shareholders of the South Caucasus Pipeline include (new share distribution after the sale and purchase transactions): BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, SOCAR - 16.7 percent.