Saipem Awarded $750 million Contract for South Caucasus Pipeline

Italy’s Saipem has been awarded a $750 million contract for the construction and commissioning of the expansion of the South Caucasus Pipeline in Azerbaijan and Georgia.

‘The scope of work for this contract includes the construction of a 428km pipeline loop and associated above ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia, as well as the construction of a 59km second pipeline loop and associated above ground installations in Georgia. The expanded section of the South Caucasus Pipeline will start approximately 23km from the Sangachal Terminal, located south-west of Baku, in Azerbaijan, and will end in Georgia just south of Tbilisi. The project will be completed by the second quarter of 2018,’ reads a note released on Monday. 

In this way, Saipem increases its involvement in the Shah Deniz Stage 2 development project, after the recent $1.8 billion E&C contract signed last month. 

According to the note, the Milan-based company did also consolidate its position in the Middle East. 

‘In the Drilling sector, Saipem has agreed in the Middle East a one year extension of an existing contract for three onshore rigs starting in the second half of 2014, and has signed new contracts for three onshore rigs starting in the second quarter of 2015 and with a duration of five years.’

According to the press release, the drilling contractor has a fleet of 30 rigs in the Middle East.