Release date: 19 March 2014
The Shah Deniz and South Caucasus Pipeline consortia are pleased to announce that they are moving forward at pace with the awards of key contracts for the development of the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects. The contracts, covering both project management services and construction, follow the final investment decisions announced on 17 December 2013. The contract awards underpin the schedule for project delivery and complement the progress being made across multiple areas of this major development.
Since the beginning of 2014 a number of key Stage 2 contracts have been awarded following on from three major contracts which were announced in December 2013:
“We are very pleased to announce these contracts”, said Gordon Birrell, Regional President for Azerbaijan, Georgia and Turkey of BP, the operator of the Shah Deniz project. “They underpin the tremendous progress that has been made since our final investment decision was taken in December. The timely award of the contracts, and the quality of the companies that will be working with us on Shah Deniz and SCP, give us confidence that these important projects can be delivered on time and on budget, allowing first gas in late 2018. Developments of this scale require close partnerships between multiple companies, and we look forward to working closely with all these companies over the next few years.”
These contract awards complement progress across the Southern Corridor projects. Offshore, the Istiglal drilling rig has completed drilling the latest well in the northern part of the field, meaning that five production wells have now been drilled. An upgrade and recertification programme has been successfully completed on the Heydar Aliyev rig, which has now returned to drilling activities in the western part of the field. These two rigs will remain working on the Shah Deniz field to deliver all the wells required to ramp production up to the planned plateau level of 16 billion cubic metres per year.
Additionally, the first consignments of steel for fabrication of the platform jackets arrived in Baku in December 2013, and on 22 February 2014 the first steel for fabrication of the platform decks arrived at the ATA fabrication yard in Bibi-Heybat near Baku. The $974 million contract for fabrication, load out and offshore hook-up and commissioning of the topsides units of the two Stage 2 platforms is being undertaken by the AMEC-Tekfen-Azfen (ATA) consortium which is comprised of AMEC MMC, Tekfen Insaat ve Tesisat A.S. and Azfen joint venture.
Tamam Bayatly, BP Baku Press Office, +994 12 599 45 57
Toby Odone, BP London Press Office, +44 (0)20 7496 4076