Caspian Sea barge contract for Aker Kvaerner

Aker Kvaerner has signed a letter of intent to perform fabrication, outfitting and testing of seven barges for oil production in the giant Kashagan oilfield in the north Caspian Sea, offshore Kazakhstan. In the letter of intent, Agip Kazakhstan North Caspian Operating Company N.V. and Aker Kvaerner confirm their intentions to complete final negotiations and sign a contract for the work later this autumn. The work on the project starts immediately under an interim agreement.

“This project is an important stepping stone in Aker Kvaerner’s North Caspian Sea strategy in general and for the Kazakhstan offshore market in particular,” said executive vice president Simen Lieungh in Aker Kvaerner. Extensive field development will go on in the Kashagan field for the next 10 to 15 years.

The letter of intent covers fabrication, outfitting and testing of seven barge modules, including three oil separation barges, two gas dehydration and glycol regeneration barges, one emergency power generation and utilities barge and one fire fighting/sea water barge. All of them will be 95 metres long, 16 metres broad and 5.5 metres high. After delivery, they will be installed on pre-installed piles and hooked up in waters 4 to 6 metres deep, as part of the first phase of the Kashagan development project.

The barge hulls will be fabricated at the Aker Tulcea and Braila Yards in Romania. Six of the hulls will be towed to Kvaerner Egersund for outfitting and testing, while one will be towed to Astrakhan Korabel Yard in Astrakhan, for completion. They will all be transported on the Volga and Don rivers to the Caspian Sea.

The partners in the Kashagan project include Eni (Agip, operator), ExxonMobil, Shell, Total, British Gas each with 16.67% interest, and ConocoPhillips and Inpex, with 8.33% each.