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Saipem Wins $1.8 Billion Contract for Azerbaijan's Shah Deniz II

By Liam Moloney ROME--Italian oil services company Saipem SpA (SPM.MI) said Wednesday it has been awarded a contract worth about $1.8 billion for engineering and construction work on a large natural gas field off Azerbaijan. BP PLC (BP) awarded the contract on behalf of the Shah Deniz consortium for the second stage of the large natural gas field, located 90 kilometers off Azerbaijan, that will supply Turkey and the European Union, Saipem said in a statement. Saipem is part of a consortium with Bos Shelf and Start Gulf, it said. The contract, which includes laying more than 360 kilometers of pipelines, is scheduled to be completed by the end of 2017. This deal follows Tuesday's announcement that Saipem has won a 400 million euros ($552 million) contract for construction works to the second line of the OAO Gazprom (GAZP.RS)-led South Stream offshore pipeline that aims to bring Russian gas via the Black Sea to the EU, bypassing Ukraine. The works related to the construction of the South Stream second line is scheduled to be completed by the end of 2016. Write to Liam Moloney at liam.moloney@wsj.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires

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