$370M in new Shah Deniz Stage 2 contracts awarded

Shah Deniz and South Caucasus Pipeline Company have informed that Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) are progressing well, announcing two new contract awards as part of the project.

The Shah Deniz Stage 2 project will deliver 16 billion cubic metres per year (bcma) of gas from the giant Shah Deniz field in the Caspian Sea, offshore Azerbaijan, through some 3,500 kilometres of pipeline to Georgia, Turkey, Greece, Bulgaria, Albania and Italy. First gas is targeted for 2018, with sales to Georgia and Turkey; first deliveries to Europe will follow approximately a year later.

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.

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, 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.

Furthermore, a $66 million contract for the second of three planned batches of subsea production trees and ancillaries required for the full field development has been awarded to OneSubsea (UK) Ltd. The delivery of equipment will take place in phases over a period from 2016 to 2021.


Shah Deniz Stage 2


This Stage 2 development of the BP-operated Shah Deniz field, which lies some 70 kilometres offshore in the Azerbaijan sector of the Caspian Sea, is expected to include two new bridge-linked production platforms; 26 subsea wells to be drilled with 2 semi-submersible rigs; 500 kilometres of subsea pipelines built at up to 550 metres of water depth; a 16 bcma upgrade for the South Caucasus Pipeline (SCP); and expansion of the Sangachal Terminal. The Trans-Anatolian Pipeline (TANAP) will transport gas across Turkey and the Trans-Adriatic Pipeline will transport gas from the Turkish-Greek border to Italy.

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