MILAN-based Saipem has been awarded the contract for the construction and installation of the offshore pipeline system as part of the development of the programme of the Kashagan field located in the Kazakh sector of the Caspian Sea, approximately 80km SE of the town of Atyrau.
The contract, awarded by the companies of the North Caspian Sea Production Sharing Agreement (PSA), following an international tender, has a total value of $520 million, and the scope of work comprises the engineering, procurement of bulk materials, coating, laying, and precommissioning of pipelines, fibre-optic cables, and umbilicals. Linepipe will be provided by the client.
Saipem will install the pipeline system between 2006 and 2007 with a new laybarge and new trenching equipment.
The companies forming the North Caspian Sea PSA, which includes the giant Kashagan field, are: Agip KCO (operator, 16.67%), BG Group, Total, ExxonMobil Kazakhstan, Inc., and Shell, all holding 16.67%, and ConocoPhillips and Inpex with 8.33% shareholdings each.