Saipem seals new BP deal in Azerbaijan

Italian offshore engineering and construction giant Saipem has, together with its consortium partners, inked a framework deal with BP for offshore projects in Azerbaijan.

The deal, involving Saipem Contracting Netherlands, BOS Shelf and BOS Shelf International, covers work in the Azerbaijani waters of the Caspian Sea utilising the Shah Deniz consortium-owned subsea construction vessel Khankendi.

Saipem will operate the 2017-built vessel and provide the crew to work on the Shah Deniz and Azeri-Chirag-Gunashli fields. The consortium’s responsibilities include engineering, procurement, construction and installation of subsea infrastructure and life-of-field services.

The total value of the framework agreement is about $300m of which Saipem’s share is $250m, the Milan-listed company said Friday.

Saipem has been operating in the region since the late 1990s, and in 2016, it was also assigned to manage the same vessel for work on the Shah Deniz field. The new agreement with BP is for three years, with extension options for another two years.