Saipem subsidiary ERSAI Caspian Contractor has received $1.8bn engineering and construction contract in support of the Kashagan offshore oil field project, located in the Kazakh waters of the Caspian Sea off Kazakhstan.


Under the contract, awarded by the North Caspian Operating Company (NCOC), Saipem will construct two 95km-long pipelines, which will connect D island in the Caspian Sea to the Karabatan onshore plant in Kazakhstan.

The company will also be responsible for engineering, welding materials, the conversion and preparation of vessels, dredging, installation, burial and pre-commissioning of the two pipelines.

Some of the work under the contract will be carried out with specialized subcontractors.

The two pipelines, each with an offshore length of about 65km out of the total 95km, will be internally cladded with a corrosion resistant alloy layer.

Saipem CEO Umberto Vergine said: "This is a very important contract working for some of the most important oil companies in the world in a key region for Saipem.

"It also represents another relevant contribution to our backlog in this low price market environment."

Work under the contract is scheduled to be completed by end of 2016.

The field, which was discovered in 2000, is being developed by consortium involving Eni, Total, Royal Dutch Shell and Exxon Mobil, reports The Wall Street Journal.

Image: Saipem has been selected to develop two pipelines for the Kashagan offshore oil field project. Photo: courtesy of supakitmod/