Project Profile
Value: US$20,000 million
Location: Shah Deniz, Azerbaijan
Production: 10-12 billion cubic metres of gas per year
Water depth: 400-500 metres
Start-up Year: 2017
The gas production under the second phase of the Shah Deniz project is expected to yield 10-12 billion cubic metres of gas per year. The development will target gas and condensate from the deep portion of the field. The water depth at the subsea facilities locations will be 400 to 500 metres, while the pressure in the reservoir exceeds 5,000 psi. The development is expected to include 26 15K subsea wells and 125km of flowlines linked up to two new platforms.
Operators:
BP: Operator with 28.8% interest
TPAO (Turkish National Oil Company): 19% interest
PETRONAS: 15.5% interest
SOCAR subsidiary AzSD: 10% interest
LUKoil: 10% interest
Nico Resources: 10% interest
SGC Upstream: 6.7%
Contractors:
Azeri: state energy company SOCAR\'s shipyard and British oil major BP have signed a deal to design and build a subsea construction vessel for the Shah Deniz II gas project
Consortium for EPC contract:
AMEC: Project and construction management expertise
Tekfen
Azfen
Consortium for FEED contract:
KBR: Platform jackets and topsides facilities plus the terminal expansion
JP Kenny: Subsea systems
CB&I: SCP upgrade including compressor stations
KBR: Carry out engineering and procurement services
Bechtel Enka joint venture (Bechtel International Inc. and ENKA İnşaat ve Sanayi A.Ş): A US$528 million contract for the construction and commissioning support of the SCPX project facilities in Georgia. The scope of work under this contract includes construction of a 16km access road, two 120 megawatt compressor stations and a pressure reduction and metering station. Completion is expected in 2018.
Consortium for major offshore transport and installation:
BOS Shelf LLC,
Saipem Contracting Netherlands B.V.
Star Gulf FZCO consortium
Chicago Bridge & Iron UK Limited (CB&I): The contract for pipeline and facilities engineering and project management services for the SCPX project. The value of this contract is US$174 million and completion expected in 2018.
Expro: subsea contract with BP for completion landing string equipment and services for the installation and completion of Shah Deniz Stage 2 subsea wells, covering 24 new subsea completions
Wood Group Kenny Limited (WGK):
- The contract for the initial phase of the subsea and pipeline engineering and project management services, amounting to US$57 million (2013).
- A US$68 million call-off contract, for 2014, covering engineering and project management services for the Shah Deniz 2 Subsea Execute phase.
Apply Emtunga: The contract for engineering, procurement and construction of the offshore platform living quarters. The US$32 million contract should be completed in 2017. Assembly and commissioning of the living quarters will be carried out at the ATA fabrication yard in Bibi-Heybat near Baku where topsides units of the platforms will be constructed using local resources.
DrillTec GmbH: The $26 million contract for horizontal directional drilling and line pipe installation for five river crossings of the SCPX project. Completion is expected in 2016.
CSM Bessac: The contract for shaft and tunnel construction and line pipe installation for the two river crossings of the SCPX project (one in Azerbaijan and one in Georgia). This US$24 million contract is expected to complete in 2017.
Siemens Energy: order to deliver customized direct electrical heating (DEH) power supply systems for ten subsea flow lines, with an option for two additional systems.
Nexans: Direct Electrical Heating (DEH) cable systems will be installed to help in maintaining the reliable flow of products from the Shah Deniz field, delivering 130 km of the cable system to provide flow assurance for 10 subsea flow lines.
Consortium of BOS Shelf LLC, Saipem Contracting Netherlands B.V. and Star Gulf FZCO: Fabrication of the jackets for the two planned offshore platforms, pin piles and subsea structures
Bredero Shaw International BV: Contract for line pipe coating coat externally with three layers of polyethylene material and internally with an epoxy coating
Saipem/Azfen (joint venture between Saipem Contracting Netherlands BV and Azfen JV): Pipeline construction contract for the South Caucasus Pipeline Expansion (SCPX) project with scope of work for this contract including:
- Construction of a 428 km pipeline loop and associated above ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia;
- Construction of a 59 km second pipeline loop and associated above ground installations in Georgia.
Baku Shipyard LLC: EPC for the new subsea construction vessel (SCV) deployed for the Stage 2 development of the Shah Deniz field
Petrofac: Contract to provide maintenance build capabilities covering new onshore, offshore and pipeline assets, with asset performance management consulting business of Petrofac being responsible for the delivery of this work (completion in 2018)
ShawCor (Bredero Shaw pipe coating division): Contracts with a value of approximately US$200 million for pipeline coating and other services in connection with the Shah Deniz Stage 2 development project in Azerbaijan executed from plants within Bredero Shaw’s EMAR region involving the application of a full suite of coatings, including “Thermotite” multilayer polypropylene insulation, anti-corrosion and concrete weight coatings
Emerson Process Management: Contract in excess of US$40 million to be the Main Automation Contractor for the Shah Deniz Stage 2 development project
Cape plc: Supply of services to projects that are part of the development of the Shah Deniz field
INNOVO: Delivery of two of it’s newly introduced Powered Reel Drive Systems, the INNODRIVE-600, for Saipem’s Shah Deniz 2 project in Azerbaijan.
FMC Kongsberg Subsea AS: Contracts for subsea infrastructure totalling US$363 million for Shah Deniz gas field. A contract worth US$297 million was awarded to FMC Kongsberg Subsea AS. The scope of work under this contract includes the supply of equipment for the production clusters consisting of subsea manifolds, associated controls and connection equipment. The delivery of equipment will take place in phases over a period from 2016 to 2021.
oneSubsea (UK) Ltd: Contract worth US$66 million for the second of three planned batches of subsea production trees and ancillaries required for the full field development. The delivery of equipment will take place in phases over a period from 2016 to 2021.
Subsea: order for Break Detection systems to check the integrity of the Direct Electrically Heated flowline system being installed in the. The DEH system, the largest in the world to date, provides flow assurance for the flowlines, especially during shut down.
Maersk Drilling: 5-year contract extension for the semi-submersible Heydar Aliyev rig with BP Exploration (Shah Deniz) Limited acting as Operator of the Shah Deniz field . The rig will continue working on the development of the Shah Deniz field in the Caspian Sea offshore Azerbaijan. The extension is in direct continuation of the current contract ending May 2016 and extends the contract until May 2021. The estimated value of the contract extension is up to Us$523m. The Heydar Aliyev rig (formerly known as Maersk Explorer) was delivered in 2003 and is designed for year-round operations at water depths from 40m to 1,000m (147ft to 3,280ft).
EnerMech: 12 month extension of a five year cranes and lifting contract by BP Exploration (Caspian Sea) Ltd. The contract, which includes a further two one-year options, will see mechanical engineering group EnerMech continue to provide cranes operation and maintenance personnel, materials, equipment, engineering and mechanical handling services for up to another three years. The contract covers all seven BP-operated platforms in the Caspian Sea and 16 offshore pedestal cranes operating in the Chirag, West Chirag, Central Azeri, West Azeri, East Azeri and deepwater Gunashli platforms, as well as the Shah Deniz gas development project. The original five year contract was valued at approximately US$50 million (£33 million) and the extended agreement will generate a further US$10 million (£6.5 million) per annum for EnerMech.
Trelleborg Sealing Solutions: Produciton of a seal for a valve for BP’s Shah Deniz field. The subsea QEV (quick exhaust valve) has been created for a subsea HIPPS (high integrity pressure protection system). Trelleborg created a bespoke version of its Captive Glyd Ring in its low friction Zurcon Z43 high modulus thermoplastic to feature in the QEV, which was selected as the seal was required to slide across mating surfaces that had dimensional changes.
Schoolhill Hydraulic Engineering: Design of the seal for a valve provided by Trelleborg Sealing SolutionsEngineering for BP’s Shah Deniz field.
DNV GL: Contract for the provision of marine warranty, operations and consultancy services. DNV GL will support the operator in assuring the project equipment transportation and installations are conducted to recognized guidelines, standards and internal requirements.
KCA Deutag: Two contracts with BP Exploration (Caspian Sea). These contracts have a combined value of approx. US$360m for the initial contract or US$1bn including all options. (December 2015)
- The first contract has been awarded to its offshore division and is for the operations and maintenance of seven platforms operated by BP in the Caspian Sea pursuant to Product Sharing Agreements. These are the East, West and Central Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations. The initial term is for three years with two three year extension options.
- The second contract has been awarded to RDS, KCA Deutag’s engineering and design specialist, and is for engineering support services on all drilling packages for projects in the Caspian Sea that are operated by BP from the Azerbaijan, Georgia and the Turkey Region. This contract is effective from 1st December 2015 to 30th September 2017 with two extension options of one year each.
Sub-contractors:
Keppel Singmarine: Fabrication and outfitting works for a new subsea construction vessel (SCV)
Houlder: Delivery of a pin pile installation equipment to Saipem as part of the Shah Deniz gas field development in the Caspian Sea. The development, 100 kilometres from Baku, Azerbaijan, requires the installation of eight steel jacket foundations for two new platforms.