Saipem, in consortium with BOS Shelf LLC and BOS Shelf International FZCO, (both companies being affiliates to the State Oil Company of the Azerbaijan Republic, SOCAR) has been awarded three new offshore contracts for the Shah Deniz Compression project operated by bp in Azerbaijan. The overall value of the contracts is approximately 700 million USD and Saipem’s share amounts to 600 million USD.

Saipem’s scope of work encompasses the Transportation and Installation (T&I) of a new 19,000-ton compression platform in the Azerbaijan sector of the Caspian Sea, as well as the Engineering, Procurement, Construction and Installation (EPCI) of approximately 26 km of offshore pipelines to connect the new compression platform to the existing facilities, and all major permanent subsea works.

The main vessels employed for offshore operations will be the Khankendi, a state-of-the-art subsea construction vessel owned by the Shah Deniz consortium, and the pipelay barge Israfil Huseynov owned by the “Azerbaijan Caspian Shipping” Closed Joint-Stock Company. Both vessels will be managed and operated by Saipem for the execution of the project. The use of local naval assets and the integration with Azerbaijani partners confirm the commitment to the enhancement of skills and technologies of the Country and the contribution to local content.

The contracts will be executed under the existing framework agreement in force between the parties, as announced on July 12, 2024.

The offshore activities are expected to commence in the third quarter of 2026, with completion targeted for 2029.

The award of these new contracts reinforces Saipem’s presence in the region and confirms its reputation as a reliable partner in the execution of major projects. Moreover, it further builds on the long-standing and successful collaboration with bp as operator in the Caspian, which has included various projects executed for the Azeri-Chirag-Gunashli and Shah Deniz fields.

About Saipem

Saipem is a global leader in the engineering and construction of major projects for the energy and infrastructure sectors, both offshore and onshore. Saipem is “One Company” organized into business lines: Asset Based Services, Drilling, Energy Carriers, Offshore Wind, Sustainable Infrastructures. The company has 5 fabrication yards and an offshore fleet of 17 construction vessels owned and 13 drilling rigs, of which 9 owned. Always oriented towards technological innovation, the company’s purpose is “Engineering for a sustainable future”. As such Saipem is committed to supporting its clients on the energy transition pathway towards Net Zero, with increasingly digital means, technologies and processes geared for environmental sustainability. Listed on the Milan Stock Exchange, it is present in more than 50 countries around the world and employs about 30,000 people of over 130 nationalities.

About SOCAR

SOCAR is one of the leading international energy companies. In order to ensure the economic interests of the Azerbaijani people, SOCAR is a major operator and participant in a number of transnational projects across the country and abroad. The company is active in all the oil and gas industry value chains. Exploration of oil and gas fields, production, processing and transportation of oil, gas and gas condensate constitute the main part of the operations of SOCAR. SOCAR also exports natural gas, oil and petrochemical products to the country's market, as well as international markets. The company's goal is to become a vertical integrated international energy company with advanced experience in the field of effective operation, social and environmental responsibility. As an important EU energy supplier, SOCAR plays a special role in the sustainable economic development of Europe.

About bp

bp (NYSE: BP, LSE: BP.L) is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.