Saipem, in consortium with BOS Shelf LLC and BOS Shelf International FZCO — both affiliates of the State Oil Company of the Azerbaijan Republic (SOCAR), has secured three new offshore contracts for the Shah Deniz Compression Project, operated by bp in Azerbaijan. The combined value of the contracts is approximately USD 700 million, of which Saipem’s share amounts to about USD 600 million.
The scope of work includes the Transportation and Installation (T&I) of a new 19,000-ton compression platform in the Azerbaijan sector of the Caspian Sea, along with the Engineering, Procurement, Construction, and Installation (EPCI) of roughly 26 km of offshore pipelines connecting the new platform to existing facilities, and associated permanent subsea works.
For offshore operations, Saipem will utilize the Khankendi, a state-of-the-art subsea construction vessel owned by the Shah Deniz consortium, and the Israfil Huseynov, a pipelay barge owned by the Azerbaijan Caspian Shipping Closed Joint-Stock Company. Both vessels will be operated and managed by Saipem during project execution.
The deployment of local assets and collaboration with Azerbaijani partners reflect Saipem’s commitment to developing national capabilities and contributing to local content in the country.
The contracts will be executed under the existing framework agreement between the parties, initially announced on July 12, 2024. Offshore activities are expected to commence in the third quarter of 2026, with completion targeted for 2029.
This new award further strengthens Saipem’s position in the Caspian region and reaffirms its reputation as a dependable partner for complex offshore developments. It also reinforces the company’s longstanding and successful collaboration with bp, building on previous work across the Azeri-Chirag-Gunashli and Shah Deniz fields.
Source: Saipem