KBR Joint Venture Secures Key BP Contracts for Azerbaijan's Energy Future

KBR Joint Venture Secures Key BP Contracts for Azerbaijan's Energy Future

Emilia Jackson 18-Jul-2025

These projects underscore a major step towards enhancing Azerbaijan's energy security and reducing emissions, leveraging local expertise with global support.

In a significant development for Azerbaijan's energy landscape, KBR announced that its esteemed joint venture with SOCAR, SOCAR-KBR LLC, has been awarded two pivotal contracts by BP. These agreements will support the Sangachal Terminal Electrification (STEL) project and the Shah Deniz compression (SDC) gas field project.

Under the newly secured contracts, SOCAR-KBR LLC will be responsible for providing comprehensive detailed engineering design solutions and procurement services for both the STEL and SDC initiatives. This latest engagement follows SOCAR-KBR's successful prior involvement, having completed the Project Front-End Engineering Design (FEED) for the STEL project, and both the pre-FEED and FEED stages for the SDC project. The progression of these contracts to the detailed engineering and procurement phases is a testament to BP's unwavering confidence in SOCAR-KBR's proven track record of delivery excellence and deep understanding of these complex energy systems.

The Sangachal Terminal, Azerbaijan’s largest oil and gas reception terminal, holds immense strategic importance as a vital conduit connecting Azerbaijan’s energy resources to the broader European market. The STEL project aims to electrify this crucial hub, enabling its transition to a national grid supply. This transition is expected to significantly reduce operational emissions, aligning with global efforts towards cleaner energy production and contributing directly to Azerbaijan’s ambitious clean energy security objectives.

Concurrently, the Shah Deniz compression project represents the next phase in optimizing the efficiency and safety of gas delivery from one of the world's largest gas-condensate fields. This project is vital for maintaining the robust performance of the Shah Deniz field, ensuring continued reliable and efficient energy supply.

A cornerstone of SOCAR-KBR LLC’s operational philosophy is its commitment to local talent development and utilization. More than 95% of the SOCAR-KBR Baku-based team comprises highly skilled Azerbaijani engineers, designers, and other professionals. This local expertise will be central to the project's execution, with strategic support and specialized knowledge provided by KBR’s global team.

KBR, a global leader in science, technology, and engineering solutions, serves governments and companies across more than 80 countries. With approximately 38,000 employees worldwide and operations in over 29 countries, KBR is dedicated to providing technology, value-added services, and long-term operations and maintenance solutions that ensure consistent delivery and predictable results for its clients. The awarding of these contracts by BP underscores KBR's continued commitment to advancing sustainable and secure energy solutions on a global scale, particularly in key energy-producing regions like Azerbaijan.

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