Norwegian Agility to Supply Equipment for Largest Gas Project in Caspian

Agility Subsea Fabrication (ASF), a world-leading subsea fabricator based in Norway, has signed a contract with FMC Kongsberg Subsea AS for the supply of various equipment within the second stage of development of Azerbaijani Shah Deniz gas field, according to a message on the ASF website.

FMC Kongsberg Subsea AS is a contractor of BP-Azerbaijan for equipping mining complexes No.3, 4 and 5 on the Shah Deniz field consisting of subsea manifolds, control units and other equipment.

The contract is worth $49.27 million and includes the supply of manifolds, bases and well jumpers to Azerbaijan, according to the message. The total weight of the equipment supplied will be 3,600 tons.

“The supplies of equipment have already started... At the beginning of 2016, Installation of equipment and constructions will begin in the field. The last deliveries under the contract are scheduled for the summer of 2019.”

As part of the implementation of the Shah Deniz project, the annual gas production volume will increase from 9 billion cubic meters (within the first phase) by additional 16 billion cubic meters in the second phase. Two offshore platforms will be installed and over 20 subsea wells will be drilled to produce additional volumes of gas within Shah Deniz-2 project.

As part of the second stage of the field’s development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.

*The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas. The contract to develop the Shah Deniz offshore field was signed June 4, 1996.

The shareholders in the contract are: BP, operator (28.8 percent), SOCAR (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).