The Shah Deniz Consortium has awarded two new contracts worth $363 million as part of overall progress of the second stage of development of Azerbaijan's giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea.
"Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects continue to move forward at pace with significant progress already achieved at all fabrication and construction sites across Azerbaijan and Georgia," BP said on June 22.
As part of these developments Shah Deniz has recently awarded two further contracts in support of the development of future flanks following first gas in 2018. These contract awards underpin the schedule for project delivery and complement the progress being made across multiple areas of this major development project.
The two newly-awarded contracts, which follow on from the key Stage 2 contracts announced earlier, include a $297 million contract for the supply of the subsea production system (SPS) hardware and a $66 million contract for the second of three planned batches of subsea production trees and ancillaries required for the full field development.
The first contract was awarded to FMC Kongsberg Subsea AS. The scope of work under this contract includes the supply of equipment for the production clusters 3, 4 and 5 consisting of subsea manifolds, associated controls and connection equipment. The delivery of equipment will take place in phases over a period from 2016 to 2021.
The second contract was awarded to OneSubsea (UK) Ltd. The delivery of equipment will take place in phases over a period from 2016 to 2021.
The Shah Deniz field, one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proven to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe.
The gas which will be produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.