Aker Solutions Awarded Contracts on Kashagan Field Hook-up
Aker Solutions in partnership with Saipem has been awarded two significant contracts from Agip KCO for the hook-up work of the Phase I development of the Kashagan field in the Caspian Sea. The total contract value for Aker Solutions' portion of the two contracts is US$ 1,6 billion.
One of the contracts includes the offshore hook-up, commissioning assistance, onshore pre-fabrication, all logistic support and inshore hook-up work. The other contract includes engineering and job carding for prefabrication and installation and vessels preparation. The contracts will be split in separate work packages, as has been the case for the early work on this field development. Aker Solutions' work will be completed by the end of 2011 with further ongoing commissioning assistance in 2012.
The awarded hook-up contracts are the follow-ups of the letter of intent and preliminary agreements signed between Agip KCO, Aker Solutions and Saipem in March 2007 for the early work activities for the hook-up.
Contract party from Aker Solutions is Aker Solutions Contracting AS for the field hook-up contract, and Aker Engineering and Technology AS for the engineering and job carding contract.
The Kashagan field, 80 km south-east of Atyrau, is the first large-scale offshore petroleum development in Kazakhstan. Extending over an area of approximately 75 km x 45 km, it is named after a 19th century Kazakh poet from Mangistau, and is considered one of the most important oil field discoveries in the past 40 years.
The North Caspian Operating Company (NCOC BV) acts on behalf of seven co-venture consortium partners as the operator appraising and developing the hydrocarbon assets of eleven offshore blocks defined under the North Caspian Sea Production Sharing Agreement (PSA) of 1997.
- Assets within the 5 600 square kilometre PSA area include the Kashagan field, 80 km south-east of Atyrau, the first large-scale offshore petroleum development in Kazakhstan which should reach a plateau of 1.5 million barrels per day. Other assets include the Kalamkas, Aktote and Kairan fields.
- NCOC is incorporated in the Netherlands with offices in Astana and Atyrau. All consortium members hold equity in accordance with their respective participating interests in the venture.
- Approximate equity interests of the consortium partners are: KMG 16.81%, Eni 16.81%,, ExxonMobil 16.81%,, Shell 16.81%, Total 16.81%, ConocoPhillips 8.40%, INPEX 7.56%.
Aker Solutions' Role in the Kashagan Field Development
Agip KCO NV, a subsidiary of Eni SpA, performs operations under the North Caspian Sea Production Sharing Agreement dated as of 1997 under an agency agreement with North Caspian Operating Company B.V.
- Agip KCO N.V. is responsible for the execution of Phase I (Experimental Program) of Kashagan offshore oil field development including achieving first commercial production, complying with the strictest international standards for safety and environmental responsibility.
- In addition, Agip KCO NV is responsible for the project execution for the onshore facilities of Phase II of the Kashagan development.
Aker Solutions has played a significant role in the Kashagan field development; both in the Experimental Program headed by Agip KCO and in the full field development phase headed by North Caspian Operating Company (NCOC).
In the Experimental Program Aker Solutions has constructed and fitted several modules and carried out hook-up work. In joint venture with WorleyParsons and CB&I, Aker Solutions has a front end engineering and design (FEED) contract for the Phase II full field development of the Kashagan field.
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