Saipem Gets Three Contracts On BP’s Caspian Project

Italian oilfield contractor Saipem, in consortium with Bos Shelf and STAR GULF FZCO, has recently been awarded three new contracts by BP for the development of the Azeri-Chirag-Gunashli (ACG) oil and gas field offshore Azerbaijan.

Located in the Caspian Sea at approximately 120 kilometers from the coast of Azerbaijan, the field extends over an area of more than 4,000 square kilometers and is one of the largest of its kind in the world.

Saipem has been a key contractor in this field since the 1990s.

BP has recently awarded key contracts for the Azeri-Central-East (ACE) project.

Some of the construction activities have already started and will run through mid-2022. The contracts, covering engineering, fabrication and construction, project management, and other services, followed the project final investment decision (FID) announced on April 19, 2019.

The contract for the fabrication of the jacket for the ACE platform and skirt piles has been awarded to the consortium consisting of BOS Shelf and Star Gulf FZCO. The value of this contract is around $260 million. The scope of work of the contract includes shop and erection engineering, rolling of tubulars, fabrication and assembly of the jacket and skirt piles, commissioning of installation systems, load-out and sea-fastening of the facility.

When it comes to Saipem’s share of work, the Italian company said on Friday that two contracts were for pipeline design, pipelay and related activities, while the third was for transportation & installation of four jacket pin piles, subsea structure, and spools.

Saipem’s share of the overall value of the three contracts is approximately $145 million.

Saipem said it had obtained one of these contracts as a result of the FEED phase awarded by BP to Saipem’s XSIGHT Division, in consortium with local partners Bos Shelf and Star Gulf, which were engaged from an early stage and on a fast track basis.

It is also worth mentioning that UK’s Subsea 7 won two contracts on the ACG projects in consortium with Bos Shelf. The two contracts together represent a sizable contract award for Subsea 7, which means the value is between $50 million and $150 million.