Saipem Wins Kashagan Pipeline Contract

Saipem has been awarded the contract for the construction and installation of the offshore pipeline system as part of the development of the program of the Kashagan field located in the Kazakh sector of the Caspian Sea, approximately 80 km southeast of the town of Atyrau.

The contract, awarded by the companies of the North Caspian Sea Production Sharing Agreement (PSA), following an international tender, has a total value of US $520 million. The scope of work comprises the engineering, procurement of bulk materials, coating, laying and pre-commissioning of pipelines, fibre optic cables and umbilicals. Line pipes will be provided by the client.

Saipem will install the pipeline system between 2006 and 2007 with a new lay barge and new trenching equipment.

The companies of the North Caspian Sea PSA, which includes the giant Kashagan field, are: Agip KCO (Operator 16.67%), BG Group (16.67%), ConocoPhillips (8.33%), ExxonMobil Kazakhstan, Inc. (16.67%), Inpex (8.33%), Total (16.67%), Shell (16.67%).