A consortium involving BOS Shelf, Saipem and Star Gulf has secured a $1.5bn contract for Shah Deniz stage 2 project in Azerbaijan.

The Shah Deniz field is located 90km offshore Azerbaijan, in water depths from 75m to 550m and is operated by BP with a 28.8% interest.

Other partners comprise TPAO (19%), Socar (16.7%), Petronas (15.5%), Lukoil (10%) and NIOC (10%).

Under the contract, the partners are responsible for management and operation of the new-build subsea construction vessel (SCV) Khankendi for transport and installation of subsea production systems and structures at all five flanks of Shah Deniz project.

"The new flagship vessel Khankendi will provide essential support for the installation of the the biggest subsea production system ever built in the Caspian."

BP vice-president for the Shah Deniz stage 2 marine and subsea programme Frank Wilson said: "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."

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Work on the project is expected to be complete by mid-2022 and also includes reactivation of the pipe-lay barge Israfil Huseinov, as well as the second pipe-lay installation campaign of water flow-lines in 2019.

The contract can be extended for another five years to cover installation of the remaining trees, flying leads, as well as jumpers at the east-south, east-north and west-south subsea flanks between 2022 and 2027.

More than 70% of all first gas work across Azerbaijan and Georgia for the Shah Deniz stage 2 project is already completed in terms of engineering, procurement and construction.

The project’s first gas is expected in 2018.