Saipem wins USD 1.8bn Kashagan offshore pipeline contract off Kazakhstan


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Submitted by Paddy Harris on 6th February 2015

06th February 2015

Saipem, through its subsidiary ERSAI Caspian Contractor LLC, has been awarded a major new engineering and construction contract for the Kashagan field project, located in the Kazakh waters of the Caspian Sea, valued at approximately USD 1.8bn

The scope of work includes the engineering, the welding materials, the conversion and the preparation of vessels, the dredging, the installation, the burial and the pre-commissioning of the two pipelines

The North Caspian Operating Company (NCOC) has awarded Saipem a contract for the construction of two 95 kilometre pipelines, which will connect D island in the Caspian Sea to the Karabatan onshore plant in Kazakhstan.

"This is a very important contract working for some of the most important oil companies in the world in a key region for Saipem,” said Umberto Vergine, Saipem CEO. “It also represents another relevant contribution to our backlog in this low price market environment".

Some of the scope will be executed with specialised subcontractors.

The two pipelines, with a diameter of 28 inches, are made of carbon steel, internally cladded with a corrosion resistant alloy layer, and will each have an offshore length of about 65 out of the total 95 kilometres.

The construction will be completed by end of 2016.