Shah Deniz awards three new contracts for compression project
Published by Emilie Grant,
Editorial Assistant
World Pipelines,
The Shah Deniz consortium is pleased to announce the award of three major offshore contracts to advance the Shah Deniz Compression (SDC) project. The contracts, with a combined value of approximately US$700 million, have been awarded to the Saipem/BOS Shelf joint venture.
The scope of work under the contracts includes:
- Transportation and installation of the entire SDC platform – a new 19 000 t facility to be installed in the Caspian Sea.
- Engineering, procurement, construction and installation of subsea structures, including approximately 26 km of new offshore pipelines, to connect the SDC platform with existing Shah Deniz infrastructure.
- All onshore construction activities will be carried out at Baku Deep Water Jacket Factory, operated by BOS Shelf.
Offshore construction and installation will be executed using two of Azerbaijan’s flagship vessels:
- The Khankendi, a subsea construction vessel owned by the Shah Deniz consortium.
- The Israfil Huseynov pipelay barge owned by the Azerbaijan Caspian Shipping Company (ASCO).
- Both vessels will be operated by Saipem under the terms of the new contracts.
Matt Kirkham, bp vice president, projects, for the Azerbaijan, Georgia and Türkiye region, Middle East and Africa, said: “With the award of these new contracts for major construction and installation works, we are making significant progress on the SDC project. The contracts will fully leverage local fabrication yards and infrastructure, engaging the local workforce. This once again demonstrates that Azerbaijan possesses world-class onshore fabrication and offshore installation capabilities that fully meet international standards. Just one example – between 2026 - 2028, a total of 3040 t of subsea structures will be fabricated and installed as part of the SDC project. It’s a remarkable piece of activity that highlights the scale and ambition of what we are delivering. I would like to thank everyone who was involved in finalising these important contracts.”
Offshore activities are expected to commence with pin pile installation in the third quarter of 2026, with completion targeted for 2029.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/17102025/shah-deniz-awards-three-new-contracts-for-compression-project/
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