Construction of major "Shah Deniz-2" contracting project to be completed in 2017

Baku, Azerbaijan, July 11
By Emil Ismayilov - Trend:

The work on the construction of the upper modules of the two platforms within the framework of the second stage of development of the "Shah Deniz" gas condensate field in the Azerbaijani sector of the Caspian Sea, will be completed in summer 2017, a source in the oil and gas market told Trend.

"AMEC-Tekfen-Azfen" (ATA) consortium will construct the upper modules for platforms. ATA last year completed the construction of "West Chirag" topsides which were installed as part of increasing oil production on the block of "Azeri-Chirag- Guneshli" offshore fields in the Azerbaijani sector of the Caspian Sea.

In general, after completion of construction and testing, the process of delivery, installation and commissioning work of the upper platform modules will be completed in 2018, the source said.

At present, the work on the expansion of ATA production units, which envisages the construction of new plants and the expansion of the existing ones, the establishment of additional generating capacity and other work that is associated with additional involvement of the working power is being completed within the framework of the project.

The source said that about 5000 specialists are planned to get involved in the project.

Along with work on the expansion of production units that have already been 80 percent implemented, the work on the production of the parts needed for the construction and installation of modules is being carried out, according to the source.

"The work was started three months earlier than prescribed terms [in April], but from July 16, construction work on this project [construction of upper modules] will be officially launched, which will determine the progress of work in accordance with the schedule," the source said.

Earlier the development operator of Shah Deniz project- BP announced the signing of a contract with the ATA consortium totalling $974 million within the Shah Deniz-2 project.

Under the contract within five years it is envisaged there will be construction to the upper modules of the production and technological platforms including a residential unit. The contractor is responsible for implementation of all these procedures before commissioning.

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.

The gas to be produced within the second phase of the field's development will be exported to Turkey and to 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).

Under the project, "Shah Deniz" gas annual production will increase from nine billion cubic meters in the first phase of an additional 16 billion cubic meters in the second phase.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.

Participants at the development of the Shah Deniz field are SOCAR (the State Oil Company of Azerbaijan) with a share of 16.7 percent, 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 (nine percent). Earlier, Total sold its share to Turkish TPAO and after completion of the transaction, the share of the latter will be 19 percent in the project.

Edited by S.I.