BP and its partners have sanctioned a new phase of development for the Shah Deniz gas field and gained access to two new exploration blocks in Azerbaijan.
The agreements, which also include terminal electrification and solar power projects, signal bp’s commitment to growth and emissions reduction in the region.
During Baku Energy Week, bp, in collaboration with its partners, finalised investment decisions for the Shah Deniz Compression project, which is set to enhance the production capabilities of the giant Shah Deniz gas field.
BP EVP for production & operations Gordon Birrell said: “We are deeply proud of the long and successful partnership that bp has built with Azerbaijan over more than 30 years. As can be seen by the agreements we signed this week, we continue to see many opportunities for further development and growth. As we deliver our strategy of growing our upstream, we will build on our strong positions in regions like Azerbaijan, and on the deep relationships we have with the government and our partners.”
Additionally, bp has committed to two sustainability-focused projects aimed at reducing operational emissions through terminal electrification and solar power initiatives.
The agreements also allow bp to explore and potentially develop two new licences in the Caspian Sea, further cementing its presence in Azerbaijan.
BP has also introduced a new partner to expedite exploration activities on a third licence.
For more than three decades, the energy giant has played a pivotal role in Azerbaijan’s oil and gas sector.
The company led the development and operation of key projects including the Azeri-Chirag-Deepwater Gunashli oilfield, the Shah Deniz gas field and the Sangachal terminal.
BP’s involvement extends to the Baku-Tblisi-Ceyhan oil pipeline and the Southern Gas Corridor gas pipeline network.
The Shah Deniz Compression project is one of eight to ten major projects bp expects to begin between 2028 and 2030.
The project is set to contribute to an increase in bp’s global upstream production to 2.3–2.5 million barrels of oil equivalent per day (mboe/d) by 2030, with potential for further growth until 2035, all within bp’s financial framework.
In addition to project approvals, the company has finalised an agreement with SOCAR, acquiring a 35% working interest and operatorship in two blocks in the Caspian Sea, the Karabagh oilfield and the Ashrafi-Dan Ulduzu-Aypara area, with SOCAR holding the remaining 65%.
The partnership has also greenlighted the Shafag solar and Sangachal terminal electrification projects, linking sustainable energy development with operational advancements.
SOCAR has also inked fresh deals with ExxonMobil and bp for hydrocarbon exploration in Azerbaijan, aiming to maintain the nation’s oil production at around 582,000 barrels per day for the next five years.
“BP expands oil and gas interests in Azerbaijan with new deals” was originally created and published by Offshore Technology, a GlobalData owned brand.
