Uchenna Izundu
International Editor
LONDON, Oct. 21 -- Agip KCO has chosen an engineering consortium led by WorleyParsons Europe Ltd. to design facilities for the second phase of massive Kashagan oil field in Kazakhstan.
In a letter of intent, valid until Dec. 31, Agip requested front-end engineering and design services for onshore and offshore facilities. The work is valued at $31 million.
"There are also options for services post-Phase II FEED, which include early works, detailed engineering and procurement services, technical assistance, and design-system integrity," said Aker Solutions ASA, one of the companies in the engineering consortium.
Kashagan, which has 34.5 billion bbl of oil in place, is a challenging field having high pressure and high hydrogen sulfide levels. In addition, it is in an environmentally sensitive area with difficult weather conditions. An initial output of 150,000 b/d of production from the field was originally scheduled to start in 2005, but it has been delayed until fourth-quarter 2012 due to the technical challenges, cost increases, and a reconfiguration of the offshore plant to boost efficiency levels and safety standards (OGJ Online, Sep. 19, 2008).
Kashagan, 80-km southeast of Atyrau in the North Caspian Sea, will be developed in three phases.
WorleyParsons and Aker Solutions secured the engineering services, fabrication, and hook-up for the first phase, which is expected to cost $19 billion.
The joint venture partners for Phase II are WorleyParsons, with a 45% interest, CB&I UK Ltd. 25%, and Aker Engineering & Technology 30%.
Agip is led by Eni SPA with an 18.52% stake. Its partners are Royal Dutch Shell PLC, ExxonMobil Corp., and Total SA, 18.52% each; ConocoPhillips 9.26%; and KazMunayGas and Inpex 8.33% each.
Contact Uchenna Izundu at [email protected].
