Azerbaijan combine awards first Caspian export pipeline contract

July 29, 1996
Azerbaijan International Operating Co. (AIOC) has let the first of a series of contracts expected this year for construction of its planned western route export pipeline for oil from Caspian Sea field developments. AIOC is developing three giant fields in the Caspian Sea and plans to lay a pipeline to the north and one to the west to carry early oil production to market (OGJ, Oct. 16, 1995, p. 38).

Azerbaijan International Operating Co. (AIOC) has let the first of a series of contracts expected this year for construction of its planned western route export pipeline for oil from Caspian Sea field developments.

AIOC is developing three giant fields in the Caspian Sea and plans to lay a pipeline to the north and one to the west to carry early oil production to market (OGJ, Oct. 16, 1995, p. 38).

The combine let a $20 million contract to John Brown Engineers & Constructors Ltd., London, for engineering, procurement, and construction management of a pipeline from Baku to the Georgian Black Sea coast.

John Brown said final sanction of the pipeline by State Oil Co. of the Azerbaijan Republic (Socar) and AIOC partners is expected in October. Contract awards for major construction work are expected by yearend.

The contractor said total western route pipeline project costs are expected to be $275 million, and work is expected to take 2 years.

This will include refurbishment of existing pipelines, installation of new pipeline sections and pumping stations, and construction of an export loading terminal on the Black Sea.

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