Saipem, BP sign agreement on Azerbaijan offshore services

BAKU, July 12, 2024 – A Saipem-led venture has entered a USD 300-million framework agreement with BP for services in Azerbaijan’s offshore, the Italian company said on Friday.

The scope of the agreement includes operating the SCV Khankendi, a vessel specifically designed for subsea construction owned by the Shah Deniz consortium.

Saipem will operate the vessel and will provide the crew to perform the marine activities for the Shah Deniz and Azeri-Chirag-Gunashli fields.

Saipem’s share of the contract is valued at around USD 250 million, the company said.

The deal was signed between BP Exploration (Caspian Sea) and a consortium comprising Saipem Contracting Netherlands, BOS Shelf and BOS Shelf International.

Shah Deniz, located on the deepwater shelf of the Caspian Sea, 70 kilometres southeast of Baku, is one of the world’s largest gas-condensate fields and the largest gas discovery ever made by BP.

The BP-operated Azeri-Chirag-Deepwater Gunashli field is located about 100 kilometres east of Baku and is the largest oilfield in Azerbaijan’s section of the Caspian Basin.

Photo of the SCV Khankendi courtesy of Baku Shipyard.

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