Italian oilfield services provider Saipem has signed a framework agreement with UK’s energy giant BP for the delivery of subsea services offshore Azerbaijan.
The framework agreement, signed between BP Exploration (Caspian Sea) and a consortium composed of Saipem Contracting Netherlands, BOS Shelf and BOS Shelf International FZCO, entails the execution of offshore activities in the Caspian Sea, operating the SCV Khankendi vessel owned by the Shah Deniz consortium and designed for subsea construction.
Saipem will operate the vessel and provide the crew to perform marine activities for the Shah Deniz , considered to be one of the world’s largest gas-condensate fields and the largest gas discovery ever made by the UK oil major, and A zeri-Chirag-Gunashli fields.
The consortium’s responsibilities include engineering, procurement, construction and installation (EPCI) of subsea infrastructures and life-of-field services.
The overall value of the services that can be provided upon customer request is estimated at approximately $300 million, of which $250 million relates to Saipem’s share.
The agreement has an initial duration of three years with the possibility of extension for two more.
Saipem noted it was in 2016 assigned the operational management of the SCV Khankendi for the execution of offshore activities for the Shah Deniz field under a framework agreement signed with BP.
The Italian company earlier this year also secured a contract with Azule Energy , an incorporated joint venture between Eni and BP, worth approximately $850 million to deliver subsea equipment for a field located offshore Angola.