The Shah Deniz consortium, operated by BP, has awarded three offshore construction contracts worth around $700 million for the Shah Deniz Compression (SDC) Project in the Caspian Sea. The contracts were granted to a Saipem–BOS Shelf joint venture, covering the engineering, procurement, construction, and installation (EPCI) of a new 19,000-tonne compression platform, subsea systems, and about 26 km of offshore pipelines.
Fabrication will take place at the Baku Deep Water Jackets Factory, while offshore work will use the Khankendi subsea vessel and Israfil Huseynov pipelay barge. Saipem’s share of the total awards is valued at roughly $600 million. Offshore installation is set to begin in Q3 2026, with full completion by 2029.
The new platform, equipped with four 11-megawatt compressors, will boost gas from existing Shah Deniz facilities to the Sangachal terminal near Baku, helping sustain production as reservoir pressure declines. The total investment for this phase is estimated at $2.9 billion.
BP said the project will “maximize local participation” and reinforce Azerbaijan’s offshore capabilities. The expansion is expected to unlock an additional 50 billion m³ of gas and 25 million barrels of condensate, extending the field’s productive life and strengthening Azerbaijan’s role as a regional gas supplier.
