The Shah Deniz consortium announced the award of a $1.5 billion contract for the transport and installation of the deeper water subsea production systems for Shah Deniz stage 2 to the BOS Shelf LLC, Saipem Contracting Netherlands B.V. and Star Gulf FZCO consortium.

The scope of work of the contract is for the management and operation of the new-build subsea construction vessel (SCV) Khankendi for the transport and installation of the deeper water subsea production systems and subsea structures at all five flanks of the project.

Frank Wilson, BP’s vice president for the Shah Deniz stage 2 marine and subsea programme, commented: “We are pleased to continue cooperation with our strategic offshore installation contractor and its major local consortium partners to progress the execute phase of the giant Shah Deniz stage 2 project. The new flagship vessel Khankendi, which is currently under construction by Baku shipyard, will provide essential support for the installation of the stage 2 subsea structures - the biggest subsea production system ever built in the Caspian. The construction of the Khankendi is making excellent progress with the hull strips and bow block already integrated. This major contract award for the installation of subsea production systems underpins our commitment to deploy new advanced subsea production technology for the first time to the Caspian as part of the Shah Deniz stage 2 development.”

The contract scope is planned to be completed by the middle of 2022, with a five-year option to extend the contract to cover the installation of remaining trees, flying leads and jumpers at the east-south, east-north and west-south subsea flanks between 2022 and 2027. The scope also includes the reactivation of the pipe-lay barge Israfil Huseinov and the second pipe-lay installation campaign of the deeper water flow-lines in 2019.

Work on Shah Deniz stage 2 and South Caucasus pipeline expansion (SCPX) projects continue to move forward with more than 70% of all first gas work across Azerbaijan and Georgia already complete in terms of engineering, procurement and construction. The project remains on schedule for the first gas in 2018.

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