Saipem wins $145m contracts from BP for Azerbaijan field

7 October 2019 (Last Updated July 29th, 2020 12:27)

Saipem, along with its consortium partners Boshelf and STAR GULF FZCO, has won three new contracts valued at $145m from BP towards the development of the Azeri-Chirag-Gunashli (ACG) oil and gas (ACG) field.

Saipem wins $145m contracts from BP for Azerbaijan field
Saipem secures three contracts from BP for ACG field offshore Azerbaijan. Credit: Saipem.

Saipem, along with its consortium partners Boshelf and STAR GULF FZCO, has won three new contracts valued at $145m from BP towards the development of the Azeri-Chirag-Gunashli (ACG) oil and gas (ACG) field.

The field is located in the Caspian Sea and is approximately 120km off the coast of Azerbaijan. It stretches across an area of more than 4,000km2. Saipem has been a key contractor in ACG field since the 1990s.

ACG is a complex comprising six production platforms namely Chirag 1, Central Azeri, West Azeri, East Azeri, Deepwater Gunashli, West Chirag. It also consists of two process, gas compression, water injection and utilities (PCWU) platforms, equipped with advanced technologies.

Among the three contracts, BP has awarded two contracts for pipeline design, pipelay and associated activities. The other one is for transportation and installation of four jacket pin piles, subsea structure as well as spools.

Saipem said in a statement: “Saipem has 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.”

“This excellent result has been achieved thanks above all to collaboration between Saipem’s XSIGHT and Offshore E&C Divisions, a synergy that will be maintained to ensure continuity and efficiency to the execution of the EPCI project.”

In April 2019, BP announced plans to invest $6bn in the Azeri Central East (ACE) project offshore Azerbaijan. The project represents the next stage of the development of the ACG oilfield complex.

In December 2018, US firms Exxon Mobil and Chevron considered exploring the sale of their stakes in the ACG oilfield.