ACG awards second package of ACE construction contracts

1 October 2019

BP as the operator of the Azeri-Chirag-Deepwater Gunashli (ACG) field development is pleased to announce that further to the announcement of the first package of key contracts for Azeri-Central-East (ACE) project, the major subsea fabrication and installation contracts have now been awarded.

This marks a significant milestone for the project and these contract awards complement the progress being made across the multiple areas and fabrication yards involved in this major development project.

The following key ACE contracts have been awarded:

1.    The contract for the engineering, procurement and construction (EPC) of the subsea structure and spools has been awarded to the consortium consisting of Subsea 7 (Deep Sea) Ltd, BOS Shelf LLC and Star Gulf FZCO. The value of the contract is around $36 million.

The scope of work of this contract includes detailed design, shop and erection engineering, fabrication and assembly of the subsea structures and spools required to tie in the subsea infrastructure.

The detailed design will be delivered from Subsea 7’s offices in Paris, and all construction and fabrication work will be undertaken at SOCAR's Baku Deepwater Jacket Factory (BDJF) named after Heydar Aliyev, using local resources including workforce and construction yard facilities.

The design works have already commenced, and fabrication is expected to be completed in 2022.

2.    The contract for the engineering, procurement, construction and installation (EPCI) of the subsea pipelines has been awarded to the consortium consisting of Saipem Contracting Netherlands B.V., BOS Shelf LLC and Star Gulf FZCO. The value of the contract is around $51 million.

The scope of work of the contract includes detailed design, installation engineering, fabrication, installation and pre-commissioning of the Oil and Produced Water, Gas Export and Water Injection pipelines.

The detailed design and installation engineering will be delivered from Saipem offices in London and Rijeka. The construction and fabrication work will be undertaken at SOCAR's Baku Deepwater Jacket Factory (BDJF) named after Heydar Aliyev, using local resources including workforce and construction yard facilities, and installation undertaken from the pipelay barge “Israfil Huseynov”.

The design works have already commenced, and installation is expected to be completed in 2021.

3.    The contract for the transport and installation of the jacket pin piles and campaigns 1 and 2 of subsea structures and spools has been awarded to the consortium consisting of Saipem Contracting Netherlands B.V., BOS Shelf LLC and Star Gulf FZCO. The value of this contract is around $37 million.

The scope of work includes the transportation of the jacket pin piles and initial batches of subsea structures and spools from the fabrication worksite and installation at the ACE, East Azeri and Central Azeri platform locations. The consortium will be operating a fleet of local support vessels for the offshore scope.

Transport and installation engineering will be delivered from Saipem’s offices in Rijeka and London. All construction, fabrication and marine support services will be undertaken at SOCAR's Baku Deepwater Jacket Factory (BDJF) named after Heydar Aliyev, using local resources including workforce and construction yard facilities.

Installation is scheduled for 2020.

4.    The contract for the transport and installation of the jacket, topsides and campaign 3 subsea structures and spools has been awarded to the consortium consisting of Subsea 7 Deep Sea Ltd, BOS Shelf LLC and Star Gulf FZCO. The value of the contract is around $112 million.

The scope of work includes the transportation of the subsea structures and spools from the fabrication worksite and installation at the ACE platform location, and the subsequent transportation and installation of the ACE jacket and topsides from their respective fabrication worksites. The consortium will be operating a fleet of local support vessels for the offshore scope, which includes post-installation hook up and commissioning support.

The engineering for the transportation and installation will be delivered from Subsea 7’s offices in Paris. All construction, fabrication and marine support services under this contract will be undertaken at SOCAR's Baku Deepwater Jacket Factory (BDJF) named after Heydar Aliyev, using local resources including workforce and construction yard facilities.

Ewan Drummond, BP Vice President for Projects: “BP as operator is pleased to announce the major subsea fabrication and installation contracts awarded to execute the ACE project safely, efficiently and on schedule. In the light of the 25th anniversary of the ACG contract this is yet another significant milestone, notable with the high-level involvement of local content in the project, highlighting the ACG partnership’s commitment to optimising the use of Azerbaijan’s local resources. Construction activities, which have commenced this year and will run through mid-2022, are taking place in-country using local resources and it is expected that, at peak, construction works will create up to 8,000 jobs.” 

Further information: Tamam Bayatly at BP’s Press Office in Baku.

Telephone: (+994 12) 525 58 95