Contract for South Caucasus Pipeline’s expansion signed in Azerbaijan

The consortium for Shah Deniz gas-condensate deposit’s development in the Azeri sector of the Caspian Sea signed a construction contract within the frame of South Caucasus main oil line expansion with a JV Saipem/Azfen (Saipem Contracting Netherlands BV and Azfen BM).

According to BP’s Shah Deniz 2 vice president Ewan Drummond there were signed 15 major contracts, over $8 billion worth, as part of the Shah Deniz 2 development.

The most of the works under the project will be finished by 2017.

There necessary the construction and updating of new pipelines.

South Caucasus pipeline will have a new branch. The gas from Shah Deniz will go via the new TANAP in Turkey. TAP will be constructed in Europe to supply gas via Greece and Albania to Italy.

South Caucasus pipeline has been constructed in the same corridor as BTC pipeline to reduce harmful impact on the environment.

The start of work is scheduled for January 2015 with mechanical completion of the Georgian section by the end of 2016 and the Azerbaijan section by the end of 2018.

Capital costs made up $250 million in 2013 (+22.7 times against 2012).

The expenditures for the pipeline are planned at $1.25 billion in 2014.

In late 2013, there was signed a final investment decision on the second phase of Azerbaijani Shah Deniz in Baku.