OneSubsea, FMC win Shah Deniz contracts

Azerbaijan

BAKU, June 23, 2015 – Two new contracts have been awarded for the Shah Deniz 2 project offshore Azerbaijan.

A $297-million contract for the supply of the subsea production system hardware was awarded to Norway’s FMC Kongsberg Subsea, while US company OneSubsea won a $66-million contract to supply subsea production trees.

Work for both contracts will take place over 2016-2021.

The project is run by a BP-led consortium to develop and transport gas from Azerbaijan’s giant Shah Deniz gas and condensate field, located in the Caspian Sea. Its second phase, slated to add 16 bcm (565 bcf) per year to the field’s output, is expanding production with two new platforms, 26 wells, subsea pipelines and facility upgrades.

One of operator BP’s largest projects, Shah Deniz 2 has seen an investment of around $6 billion to date, and total spending is expected to reach $28 billion.

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