A CONSORTIUM comprising Saipem, an Eni company, (leader), Starstroi (a Saipem LUKoil–Neftegazstroy joint venture), LUKoil-Neftegazstroy, and Amec Spie Capag, has been awarded a lump sum turnkey contract for an onshore oil and gas pipeline system associated with the Sakhalin II development project on the Russian Sakhalin island. The contract, awarded by the Sakhalin Energy Investment Co, has a total value of approximately $1200 million; Saipem’s share is approximately $600 million.
The project covers engineering procurement and construction (EPC) of the 800-km onshore twin pipeline system connecting the Piltun–Astkhskoye and Lunskoye fields landfall pull-in heads, NW of Sakhalin, to a liquefied natural gas plant and an oil export terminal located in the southern part of the island. Completion of activities is expected in the second half of 2006.