ShawCor Nets Another Shah Deniz 2 Contract

The Shah Deniz consortium has awarded a further two contracts key to the progress of the Shah Deniz Stage 2 development project.

The two contracts have a combined value of $226 million and have been awarded to ShawCor Nederland B.V. (Bredero), part of the Bredero Shaw pipe coating division.

Together with the previously awarded contracts relating to the Shah Deniz Stage 2 and the related South Caucasus Pipeline projects, Bredero Shaw has now secured contracts totalling over US$500 million on these projects.

These contracts cover application of anti-corrosion and concrete weight coatings to the Shah Deniz 2 subsea export pipelines, and upgrades to the Caspian Pipe Coatings (CPC) plant in Baku to enable the facility to meet the project’s requirements for anti-corrosion and concrete weight coating.

All construction and coating work under the contracts will be undertaken at the CPC facility in Baku, using local resources. The contracts are expected to require a workforce of around 300 local Azerbaijani staff.

According to the company, coating will start in January 2015, following completion of the CPC plant upgrades. To meet the Stage 2 first gas schedule, it is planned to have the first 16” line-pipe coated ready for pipe-lay in the second quarter of 2015 and the last 32” line-pipe completed in October 2015.

“We are pleased with the progress made by the project since the final investment decision last December. With most of the major engineering, construction and supply contracts already awarded, the Stage 2 and South Caucasus Pipeline expansion projects are on track. We have already awarded contracts valued at some $9.6 billion and work has already started in most construction areas across Azerbaijan and Georgia,” said Ewan Drummond, BP’s Vice President for the Shah Deniz Stage 2 programme.

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