The Shah Deniz consortium has announced the signing of a contract worth 321 million US dollars for the construction of the topside modules of the Shah Deniz Compression (SDK) platform within the framework of the Shah Deniz Compression (SDK) project. SIA reports that BP, the operator of the Shah Deniz project, has released a statement on this.
According to the information, the contract has been awarded to Azfen. The contract for the construction of the topside modules is an important step that marks the start of the main works for the implementation of the project after the final investment decision was made on the SDK project in June this year.
The scope of work of the contract includes the construction, assembly, installation and integration of an 8,500-ton topside module block for the SDK platform. Construction works will be carried out at Azfen's construction and installation site in Bayil, using local infrastructure and resources within the country.
Construction of the topsides is scheduled to begin in the fourth quarter of 2025 and be completed by the end of 2028. The work will involve more than 3,000 workers, more than 90% of whom are local specialists.
“We believe that this progress on the SDK project is a significant milestone for the Shah Deniz partners and the country as a whole. This success further underlines the dedication of our project teams, the strength of our local partnerships and our commitment to delivering the project to the highest standards in terms of safety, quality and capital efficiency,” said Euan Drummond, BP’s senior vice president, projects.
The award of the contract to Azfen builds on the company’s proven track record, including its successful track record in the construction of topsides for offshore platforms in Azerbaijan. The company’s fully modernised, world-class construction and assembly facility in Bayil provides all the necessary facilities for the onshore integration of the topsides after construction and loading them onto a barge. This is a key factor in ensuring the SDK project is implemented on schedule and within budget.
The aim of the USD 2.9 billion SDK project, the next stage of the development of the giant Shah Deniz gas field, is to access and extract low-pressure gas reserves in the field, thereby achieving maximum gas recovery from the field.
The project is expected to produce and export approximately 50 billion cubic meters of additional gas and approximately 25 million barrels of additional condensate from the Shah Deniz field.
The project involves the construction of a new compression facility – an electrically powered, unmanned compression platform (or Essentially Unmanned Unit (eNUI)). The platform will be installed in 85 meters of water depth, approximately 3 kilometers from the existing Shah Deniz Bravo (SDB) platform.
The SDK platform, which will be equipped with four 11-megawatt compressors, will serve as the main facility for the compression of gas produced from both the Shah Deniz Alfa (SDA) and SDB platforms. This means that export gas produced from both platforms will be compressed at SDK before being sent to the onshore Sangachal terminal.
The project also includes a number of related facilities to be installed in the Shah Deniz contract area, as well as a number of works to be carried out on existing infrastructure at SDA, SDB and the Sangachal terminal.
Construction is scheduled to begin in late 2025. Upon completion in 2029, the SDK platform is expected to be ready to receive gas volumes produced from SDA that year and from the SDB platform in 2030.
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