Global energy giant bp announced a significant deepening and expansion of its long-standing operations in Azerbaijan, marked by a series of new agreements signed during Baku Energy Week on June 3. These landmark deals pave the way for substantial growth and additional production in the region, reinforcing bp's strategic partnership with Azerbaijan and its state oil company, SOCAR.

A key highlight of the announcements is the final investment decision for the next major phase of development of the colossal Shah Deniz gas field, dubbed "Shah Deniz Compression." Furthermore, bp has secured access to two new exploration and development licenses and is taking steps to bring in a new partner to accelerate exploration on a third.

Gordon Birrell, EVP Production & Operations at bp, expressed immense pride in the enduring partnership, stating, "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." He emphasized that these agreements align with bp's strategy to grow long-term shareholder value and its global upstream production goals.

bp has been a cornerstone of Azerbaijan's energy sector for over three decades, leading the development and operation of Azeri-Chirag-Deepwater Gunashli (ACG) oil field, the Shah Deniz gas field, and the Sangachal processing and export terminal. The company also played a crucial role in establishing major export pipelines- the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and the Southern Gas Corridor (SGC) gas pipeline network.

The $2.9 billion Shah Deniz Compression project represents the third phase of development for the world-class Shah Deniz gas field. This initiative is specifically designed to access and produce low-pressure gas resources. The project will involve the installation of a new unmanned compression platform and is projected to yield an additional gross 50 billion cubic meters of gas and 25 million barrels of condensate. First gas from this phase is anticipated in 2029.

Beyond the significant project approvals, bp has also solidified its exploration presence in the Caspian Sea. An agreement with SOCAR grants bp access to two new blocks for exploration and development: the discovered Karabagh oil field and the Ashrafi-Dan Ulduzu-Aypara (ADUA) area. bp will hold a 35% working interest and assume operatorship of both blocks, with SOCAR retaining the remaining 65%.

Furthermore, bp and SOCAR have reached an agreement for Türkiye’s TPAO to acquire a 30% interest in the production sharing agreement for the Shafag-Asiman block in the Caspian Sea.