BP awards $700 million contracts for Azeri gas compression project

BP awards $700 million in contracts for Azeri gas compression project

BAKU, October 15, 2025 – The BP-led Shah Deniz consortium has awarded three major offshore contracts worth USD 700 million to a joint venture between Saipem and BOS Shelf for the Shah Deniz Compression (SDC) project in Azerbaijan, BP announced on Tuesday.

The contracts cover the transportation and installation of a new 19,000-tonne compression platform in the Caspian Sea and 26 kilometres of offshore pipelines connecting the new facility to existing infrastructure.

All onshore construction will take place at the Baku Deep Water Jacket Factory, operated by BOS Shelf. Offshore works will use the Khankendi subsea vessel and the Israfil Huseynov pipelay barge, which will be operated by Saipem under the terms of the new contracts.

“With the award of these new contracts for major construction and installation works, we are making significant progress on the SDC project. This once again demonstrates that Azerbaijan possesses world-class onshore fabrication and offshore installation capabilities,” said BP vice-president of projects Matt Kirkham.

Construction activities are scheduled to start in Q3 2026, with completion aimed for 2029. The compression platform will enable an estimated 50 bcm (1.77 tcf) of additional gas and 25 million barrels of condensate production from the field.

The SDC project, valued at around USD 2.9 billion, is a key phase in the development of the Shah Deniz gasfield. The facility will be located 3 kilometres from the Shah Deniz Bravo platform at 85 metres water depth and will compress export gas from the Shah Deniz Alpha and Bravo platforms before delivery to the Sangacha onshore terminal, about 55 kilometres south of Baku.

BP is the lead partner in the Shah Deniz PSA with a 30% interest. Its partners in the venture are Lukoil (20%), Türkiye Petrolleri (19%), SGC (16%), NICO (10%) and MVM (5%).

Photo of Shah Deniz Alpha pplatform courtesy of BP

Read our latest insights on: