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.

"We have played a significant role in developing this field since 2004 and these hook-up contract awards demonstrate that we have succeeded in actively positioning ourselves for this target project in one of the world's richest regions of natural resources," says Simen Lieungh, president and CEO of Aker Solutions.

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. The Kashagan field extends over an area of approximately 75 km x 45 km and is named after a 19th century Kazakh poet from Mangistau.

The Kashagan field is considered one of the most important oil field discoveries in the past 40 years.

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.

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.

Tags: Aker Solutions, Saipem