BP awards $226 million Shah Deniz contract

The BP office in Baku issued the following statement by e-mail:

The Shah Deniz consortium is pleased to announce the recent award of a further two contracts key to the progress of the Shah Deniz Stage 2 development project.

The two contracts have a combined value of $226 million and have been awarded to ShawCor Nederland B.V. (Bredero), part of the Bredero Shaw pipe coating division.  These contracts cover application of anti-corrosion and concrete weight coatings to the Shah Deniz 2 subsea export pipelines, and upgrades to the Caspian Pipe Coatings (CPC) plant in Baku to enable the facility to meet the project’s requirements for anti-corrosion and concrete weight coating.   

All construction and coating work under the contracts will be undertaken at the CPC facility in Baku, using local resources. The contracts are expected to require a workforce of around 300 local Azerbaijani staff. This highlights the Shah Deniz consortium’s commitment to optimise the use of Azerbaijan’s local resources.   Coating will commence in January 2015, following completion of the CPC plant upgrades. To meet the Stage 2 first gas schedule, it is planned to have the first 16” line-pipe coated ready for pipe-lay in the second quarter of 2015 and the last 32” line-pipe completed in October 2015.

 Ewan Drummond, BP’s Vice President for the Shah Deniz Stage 2 programme, said: “We are pleased with the progress made by the project since the final investment decision last December. With most of the major engineering, construction and supply contracts already awarded, the Stage 2 and South Caucasus Pipeline expansion projects are on track. We have already awarded contracts valued at some $9.6 billion and work has already started in most construction areas across Azerbaijan and Georgia”.

“In Azerbaijan activities continue at pace at the fabrication yards for jackets and decks, as well as at the onshore terminal construction sites. I am particularly pleased that work at all construction yards is underpinned by a continued commitment to safe site activities. The Baku Deepwater Jacket Factory (BDJF), where jackets are being constructed,  has already achieved one million man hours  and the ATA yard (AMEC-Tekfen-Azfen) two million man hours without an injury. This is a very good achievement and we expect this to continue across all sites and during the entire construction period,” added Ewan.

Notes to Editors

The Shah Deniz Stage 2 project will deliver 16 billion cubic metres per year (bcma) of gas from the giant Shah Deniz field 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 approx