The bp-led Shah Deniz consortium has awarded three big offshore contracts worth approximately $700 million to the Saipem and BOS Shelf joint venture to develop the Shah Deniz Compression (SDC) project in the Caspian Sea. The awards are a big step in bp's strategy to maximize gas recovery from one of the globe's largest producing fields.
The scope includes transportation and installation of a new 19,000-tonne compression platform and approximately 26 km of subsea pipeline to existing Shah Deniz facilities. Fabrication will be conducted at the Baku Deep Water Jacket Factory and offshore works will be conducted with Azerbaijan's flagship vessels-the Khankendi subsea construction vessel and the Israfil Huseynov pipelay barge-being 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 is the second phase of Shah Deniz field development that targets recovery of the low-pressure gas reserves and increasing recovery. The new electrically powered, normally unattended compression platform will raise the flow of gas from Shah Deniz Alpha and Bravo platforms to the Sangachal terminal for export of an estimated 50 billion cubic meters of incremental gas and 25 million barrels of condensate. Offshore installation will begin in 2026 and finish by 2029.