Saipem bags US$750 million contract in Azerbaijan and Middle East

saipem crane Schumi4ever wikimediaItalian oil and gas contractor Saipem has been awarded a new engineering, drilling and construction contract worth US$750mn in the Caucasus region and the Middle East

Saipem has bagged a contract for the construction and expansion of the South Caucasus pipeline in Azerbaijan and Georgia. This contract has been awarded by the Shah Deniz consortium, reports stated. The contract includes the construction of a 428km pipeline loop and ground installations, block valves, pigging facility and tie-ins in Azerbaijan and Georgia. A 59km second pipeline loop and ground installations in Georgia will also be constructed, the company added.

The Caucasus pipeline begins 23km from the Sangachal Terminal, located southwest of Baku, Azerbaijan and ends in Tbilisi, Georgia. The project is expected to be completed by Q2 2018, added authorities.

Saipem’s drilling contract is a one-year extension of an existing contract for three onshore rigs, and it begins in the second half of 2014. Saipem has also signed new contracts for a duration of five years for three onshore rigs that begin in 2015.

Last month, Saipem was awarded an engineering and construction (E&C) contract worth US$1.8bn by the BP-led Shah Deniz consortium. The contract is to transport and install jackets, topsides and subsea production systems and structures on the Shah Deniz field, located 90km offshore Azerbaijan.

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