Italian offshore energy services firm Saipem has signed a framework agreement with BP for the delivery subsea services at the Shah Deniz and Azeri-Chirag-Gunashli fields, offshore Azerbaijan.
The contract with BP was signed by Saipem, in consortium with BOS Shelf and BOS Shelf International FZCO.
The framework agreement entails the execution of offshore activities in the Azerbaijani waters of the Caspian Sea operating the SCV Khankendi, a state-of-the-art vessel owned by the Shah Deniz consortium and specifically designed for subsea construction.
The overall value of the services that can be provided upon customer request, pursuant to the framework agreement, is estimated at approximately $300 million, of which $250 million relate to Saipem's share.
Saipem will operate the vessel and will provide the crew to perform the marine activities for the Shah Deniz and Azeri-Chirag-Gunashli fields, located off the coast of Azerbaijan.
The consortium’s responsibilities include engineering, procurement, construction and installation of subsea infrastructures and life-of-field services.
The agreement, having an initial duration of three years with the possibility of extension for two more, reinforces Saipem’s long-standing relationship with bp and consolidates its presence in an area where the company has been operating since the late 1990s.
Notably, in 2016, Saipem was already assigned the operational management of the SCV Khankendi for the execution of offshore activities for the Shah Deniz field under a framework agreement signed with BP.