Saipem bags contract for Kashagan field worth $1.8 billion

MILAN, Italy -- Saipem, through its subsidiary ERSAI Caspian Contractor, has been awarded a major new engineering and construction contract for the Kashagan field project, located in the Kazakh waters of the Caspian Sea, valued at approximately $1.8 billion.

The North Caspian Operating Company has awarded Saipem a contract for the construction of two 95 km pipelines, which will connect D island in the Caspian Sea to the Karabatan onshore plant in Kazakhstan.

The scope of work includes the engineering, the welding materials, the conversion and the preparation of vessels, the dredging, the installation, the burial and the pre-commissioning of the two pipelines. Some of the scope will be executed with specialized subcontractors.

The two pipelines, with a diameter of 28 inches, are made of carbon steel, internally cladded with a corrosion resistant alloy layer, and will each have an offshore length of about 65 km out of the total 95 km. The construction will be completed by the end of 2016.