The North Caspian Operating Company (NCOC) has awarded Saipem a $1.8 billion Engineering and Construction contract in the petroleum rich waters of the North Caspian.

The scope of the work includes engineering,welding materials, conversion and preparation of vessels, dredging, installation and finally burial and pre-commissioning of two 95 km oil pipelines. Construction is expected to be completed at the end of 2016.

The two pipelines, with a diameter of 28 inches, are made of carbon steel, internally cladded with a corrosion resistant alloy layer, and will each have an offshore length of about 65 out of the total 95 km.

Umberto Vergine, Saipem CEO, commented: "This is a very important contract working for some of the most important oil companies in the world in a key region for Saipem. It also represents another relevant contribution to our backlog in this low price market environment".