The bp-led Shah Deniz consortium has awarded three major offshore contracts worth approximately $700 million to the Saipem and BOS Shelf joint venture to advance the Shah Deniz Compression (SDC) project in the Caspian Sea. The awards mark a major step in bp’s plan to expand gas recovery from one of the world’s largest producing fields.
The scope includes transportation and installation of a new 19,000-tonne compression platform and about 26 km of subsea pipelines connecting to existing Shah Deniz infrastructure. Fabrication will take place at the Baku Deep Water Jacket Factory, while offshore work will be executed using Azerbaijan’s flagship vessels—the Khankendi subsea construction vessel and the Israfil Huseynov pipelay barge—both operated by Saipem.
“By awarding these contracts, we’re making significant progress on the Shah Deniz Compression project,” said Matt Kirkham, bp Vice President of Projects for the Azerbaijan, Georgia and Türkiye region. “The work will fully leverage Azerbaijan’s fabrication capacity and local workforce. Between 2026 and 2028, over 3,000 tonnes of subsea structures will be fabricated and installed—showcasing the country’s world-class offshore capability.”
The $2.9 billion SDC project represents the next stage of Shah Deniz field development, designed to access low-pressure gas reserves and maximize recovery. The new electrically powered, normally unattended compression platform will boost gas flow from the Shah Deniz Alpha and Bravo platforms to the Sangachal terminal, enabling an estimated 50 billion cubic meters of additional gas and 25 million barrels of condensate for export. Offshore installation will begin in 2026, with completion targeted for 2029.
