Contract Awards For Shah Deniz Stage 2, SCPX Projects

June 2014, Vol. 241, No. 6

The Shah Deniz and South Caucasus Pipeline consortia are going forward with key contracts for the development of the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects in the Azerbaijan sector of the Caspian Sea. The contracts, covering both project management services and construction, follow the final investment decisions announced in December 2013.

Since the beginning of 2014 several contracts have been awarded following three major contracts that were announced in December. These include the contract to Siemens Energy for delivery of customized direct electrical heating (DEH) power supply systems for 10 subsea flow lines to prevent hydrate formation during shutdowns, with an option for two additional systems. Delivery of the equipment is scheduled at the end of 2015.
The $174 million contract for pipeline and facilities engineering and project management services went to Chicago Bridge & Iron UK Limited. Completion is expected in 2018.

Wood Group Kenny Limited won the initial phase contract for the subsea and pipeline engineering and project management services, amounting to $57 million. The contract for engineering, procurement and construction of the offshore platform living quarters went to Apply Emtunga. The $32 million contract is scheduled for completion in 2017.
The $26 million contract for horizontal directional drilling and line pipe installation for five SCPX river crossings has been awarded to DrillTec GmbH. Completion is expected in 2016.

CSM Bessac will provide shaft and tunnel construction and line pipe installations for two river crossings, (one in Azerbaijan and one in Georgia), under a $24 million contract that is schedule to be completed in 2017.

FMC Technologies, Inc.’s contract covers the supply of subsea systems, which includes subsea manifolds, associated controls and connection equipment, as well as key controls and connection components for subsea production trees.

The $528 million contract for the construction and commissioning of facilities in Georgia was awarded to the Bechtel Enka joint venture comprised of Bechtel International Inc. and ENKA ?n?aat ve Sanayi A.?. The work includes construction of a 16 km access road, two 120-megawatt compressor stations and a pressure reduction and metering station.
Gordon Birrell, regional president for Azerbaijan, Georgia and Turkey of BP, the operator of the Shah Deniz project, said first gas is expected in late 2018.