As Nippon Steel Corp gets set to start building a $US507 million crude oil pipeline in October for the Sakhalin I oil and gas project, Aker Kvaerner has been awarded a $US150 million contract in the development of the giant Sakhalin II Phase 2 project in Russia.
The Nippon Steel Corp Phase 1 of the project involves the development of oil from the Chayvo and Odoptu fields, with first oil from Chayvo expected at the end of 2005 to be piped to a marine tanker terminal at DeKastri, on mainland Russia.
The Sakhalin II gas and oil field offshore the Sakhalin Island will be developed with two offshore platforms with concrete substructures sitting on the seabed. The area is subject to seismic activity and pack ice drifts down from the Sea of Okhotsk for about eight months every year from October to May.
The Aker Kvaerner's contract includes engineering, procurement, management and project services for two platform substructures. The company has already started the engineering and procurement for the two platforms from its offices in Oslo.
