AMEC Wins Sakhalin II Engineering Contract

AMEC has expanded its engineering services work in the oil and gas sector with the award of a US $230 million contract for a Shell joint venture to undertake the next stage of detailed engineering, project management and construction support on the massive 'frontier' Sakhalin II offshore development in the Russian Far East.

AMEC Chief Executive, Sir Peter Mason, commented: "This is another example of AMEC bringing together its expertise from around the world to deliver for key clients in important emerging energy production fields. This project will involve immense technical challenges and, working closely with Russian engineering organizations, we will utilize the very latest specialist offshore industry expertise to make the Sakhalin project a 'benchmark' for future success".

The Sakhalin II project involves the development of the Piltun and Lunskoye oil and gas fields by Sakhalin Energy Investment Company, a joint venture between Shell, Mitsui and Mitsubishi. The project is one of the largest oil and gas developments in the world. Today’s announcement comes nearly two years after AMEC secured its first contract, of around $62 million, to undertake initial engineering studies for the offshore aspects of this vast development.

AMEC's contract will involve the management of a peak global workforce approaching 1000 in 2003 and 2004 undertaking detailed engineering, procurement and project management services. It will also see the company provide management services to the client's team for construction, installation, hook-up and final commissioning of the two massive platforms.