$365 million contract awarded for Shah Deniz development plan
By Aynur Jafarova
A new major contract, worth $365 million, has been awarded for the second stage of development of the giant Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea, the Shah Deniz consortium announced on December 28.
The contract for provision of detailed engineering, project management and procurement support services for the Shah Deniz Stage 2 project has been awarded to KBR.
"The award of this contract follows the final investment decision for the Stage 2 development signed in Baku on 17 December," BP Azerbaijan said.
The scope of work for this contract includes offshore engineering design support for Shah Deniz Stage 2 offshore complex consisting of two bridge-linked platforms, onshore engineering design support services for the onshore gas processing facility at the Sangachal Terminal consisting of two gas processing trains with 900 million cubic feet per day-capacity each and condensate processing facilities with about 105,000 barrels per day capacity, provision of procurement services as well as Project Information Management integrator.
The work under this contract is planned to commence in January 2014 with completion expected in 2018.
The Shah Deniz Consortium has made the final investment decision (FID) on the second stage of offshore gas condensate field development. The ceremony of signing of the document kicked off in Baku on December 17.
The gas which will be produced in the second stage of Shah Deniz field is considered as the main source of the Southern Gas Corridor project.
A consortium of Azerbaijani Shah Deniz gas condensate field development announced its choice of the TAP project in late June, as a gas transportation route to the European markets.
Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.
Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.
Within the second phase of development it is planned to produce some 16 billion cubic meters of gas, six billion of which will be transported to Turkey and ten billion to Europe.