Two additional contracts have been awarded for the Shah Deniz Stage 2 project, offshore Azerbaijan in the Caspian Sea, some 100km south of Baku, operator BP announced.
FMC Kongsberg Subsea won a US$297 million contract for the supply of the subsea production system hardware. The scope of work includes the supply of equipment for the production clusters 3-5 consisting of subsea manifolds, associated controls and connection equipment. This contract is in addition to the initial order for clusters 1-2 received in 2014, FMC said. The delivery of equipment will take place in phases over a period from 2016-2021.
"This award continues our multi-year support for BP on this project," said Tore Halvorsen, FMC Technologies' Senior Vice President, Subsea Technologies. "Our close cooperation on this project has accelerated the transition to the manufacturing stage and enabled us to reduce the lead time delivering the project.”
OneSubsea also won a $66 million contract for the second of three planned batches of subsea production trees and ancillaries required for the full field development. The delivery of equipment will take place in phases over a period from 2016-2021.
In December 2014, Nexans provided its first delivery for the subsea direct electrical heating (DEH) system to be used at Shah Deniz Stage 2 development. Nexans is tasked with supplying a comprehensive subsea DEH system solution including complete system design and 130km of cables with accessories for installation. This will provide flow assurance for 10 subsea flowlines serving the Shah Deniz high-pressure gas condensate development.
In November 2014, BP awarded a $200 million contract to Bredero Shaw's pipe coating division for the Shah Deniz Stage 2 development project. The contract involves the application of anti-corrosion and concrete weight coatings, and upgrades to the Caspian Pipe Coatings plant in Baku.
That same month, BP also awarded Emerson Process Management a $40 million contract to be the main automation contractor for Stage 2. Emerson is set to provide integrated control and safety systems to help ensure safe and efficient control of gas production on two new offshore platforms.
The Shah Deniz consortium consists of: BP, operator (28.8%), SOCAR (16.7%), PETRONAS (15.5%), Total (10%), Lukoil (10%), NICO (10%) and TPAO (9%).
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