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17.04.2014 10:56

Two contracts signed within Shah Deniz project

Baku. Agshin Rafigoglu - APA-Economics. The consortium for the development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea has signed a contract with the consortium consisting of BOS Shelf LLC, Saipem Contracting Netherlands B.V. and Star Gulf FZCO for the fabrication of the jackets for the two planned offshore platforms, pin piles and subsea structures under the Shah Deniz-2 project, British BP, the operator of the field's development said on April 10.

The total cost of the contract is $750 million.

In addition, the Shah Deniz consortium has also recently awarded a contract for the supply of the subsea production systems. The estimated value of this contract is $394 million and it has been awarded to FMC Technologies Inc. The scope of work under this contract includes the supply of equipment for the first two production clusters consisting of subsea manifolds, associated controls and connection components.

The first contract, for its part, includes construction of two single batter jackets - both 110 metres in height. The jackets will weigh 13,400 and 12,300 tonnes including the flotation tanks. In addition, the contract includes the fabrication of 2,300 subsea structures with a total weight of 30,000 tonnes.

All construction and fabrication work under this contract will be undertaken at SOCAR's Baku Deepwater Jacket Factory (BDJF) named after Heydar Aliyev, involving local workforce. The contract envisages fabrication, transportation and installation of the offshore facilities - jackets, pipelines and subsea structures - under Shah Deniz project.

Construction works under both of the contracts are expected to complete in 2017.

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).

The final investment decision on the second phase of development of the Shah Deniz gas condensate field where gas in the volume of 10 billion cubic meters will go first to the European market was adopted in Baku on Dec.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).

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