ATYRAU, KAZAKHSTAN — Aker Solutions, in partnership with Saipem, has been awarded two contracts from Eni subsidiary Agip KCO for the hook-up work of the Phase I development of the Kashagan field in the Caspian Sea. The total contract value for Aker Solutions’ portion of the two contracts is US$1.6 billion. Saipem’s portion of the contract is worth around US$1 billion.
One of the contracts includes the offshore hook-up, commissioning assistance, onshore pre-fabrication, all logistic support and onshore hook-up work. The other contract includes engineering and job carding for prefabrication and installation and vessel preparation. The contracts will be split in separate work packages, as has been the case for the early work on this field development. Aker Solutions’ work will be completed by the end of 2011 with further ongoing commissioning assistance in 2012.
Saipem’s marine activities will be carried out using five barges converted into temporary living quarters and offices, as well as temporary barges, which Saipem refurbished and prepared according to the preliminary contract signed with Agip KCO in 2007. The activities will be completed by 2012. Pre-fabrication and completion of the offshore facilities will take place at the Kuryk yard in Kazakhstan.
“I am very pleased to announce that we have signed the hook-up contracts for the Kashagan field. It is a significant milestone for Aker Solutions’ international operations and demonstrates our strong foothold in the Caspian region. We have played a significant role in developing this field since 2004 and these hook-up contract awards demonstrate that we have succeeded in actively positioning ourselves for this target project in one of the world’s richest regions of natural resources,” said Aker Solutions President and CEO Simen Lieungh.
The awarded hook-up contracts are follow-ups to letter of intent and preliminary agreements signed between Agip KCO, Aker Solutions and Saipem in March 2007 for the early work activities for the hook-up. Contract party from Aker Solutions is Aker Solutions Contracting AS for the field hook-up contract, and Aker Engineering and Technology AS for the engineering and job carding contract.
The Kashagan field, 80 kilometers (49.7 miles) southeast of Atyrau, is the first large-scale offshore petroleum development in Kazakhstan. The Kashagan field extends over an area of around 75 kilometers by 45 kilometers (46 miles by 28 miles).