The BP-led Shah Deniz consortium has signed three major offshore contracts worth approximately USD 700 million with the Saipem-BOS Shelf joint venture for the implementation of the Shah Deniz Compression (SDC) project in the Caspian Sea. These contracts mark a significant step in BP’s plan to expand gas production at one of the world’s largest gas fields.
The scope of work includes the transportation and installation of a new compressor platform weighing 19,000 tons and approximately 26 km of subsea pipelines connecting it to the existing Shah Deniz field infrastructure. Fabrication will take place at the Baku Deepwater Foundations Plant, while offshore operations will be carried out using flagship Azerbaijani vessels — the subsea construction vessel Hankendi and the pipe-laying barge Israfil Guseynov, operated by Saipem. Between 2026 and 2028, more than 3,000 tons of subsea structures will be fabricated and installed, showcasing the country’s world-class capabilities in offshore construction.
The $2.9 billion SDC project is the next stage of development of the Shah Deniz field, aimed at accessing low-pressure gas reserves and maximizing recovery. The new electrically driven, largely maintenance-free compressor platform will increase gas flow from the Alpha and Bravo platforms to the Sangachal terminal, enabling the production of an additional approximately 50 billion cubic meters of gas and 25 million barrels of condensate. Offshore installation is scheduled to begin in 2026, with completion planned for 2029.
