Azernews.Az

Nazrin Abdul

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bp, as the operator of the Shah Deniz gas and condensate field development and the Sangachal Terminal, is pleased to announce the award of two major engineering contracts, Azernews reports, citing the company.

These contracts, covering detailed engineering and procurement support services, have been awarded to the SOCAR-KBR joint venture, marking a significant advancement in the execution of the Shah Deniz Compression (SDC) and Sangachal Terminal Electrification (STEL) projects.

The contract awards follow the Final Investment Decisions (FIDs) for both projects, which were announced during Baku Energy Week on 3 June 2025 — a key milestone propelling the projects into their execution phases.

Matt Kirkham, bp Vice President of Projects for the Azerbaijan-Georgia-Türkiye region, Middle East, and Africa, commented:
“I am proud to announce this significant milestone in advancing the SDC and STEL projects. Following the FIDs in early June, we have successfully completed the sourcing phase and awarded key contracts to the SOCAR-KBR joint venture. Their proven expertise in Caspian region projects — including their successful delivery of prior SDC scopes — was instrumental in this decision.

I extend heartfelt thanks to everyone whose dedication and hard work have made this achievement possible. I look forward to our continued partnership to deliver these projects safely, competitively, and on schedule.”

The £43 million ($57,3 million) SDC contract has been effective since 1 July 2025, with completion planned for 2026. The scope includes engineering and procurement support for:

- Topside facilities of the SDC platform;
- Jacket and piles for the SDC platform;
- Onshore and offshore brownfield installations at Shah Deniz Alpha, Shah Deniz Bravo, and Sangachal Terminal;
- System design engineering for integration with the subsea system, ensuring readiness for installation, commissioning, and operational handover.

The £7 million ($ 9,33 million) STEL contract, effective since 1 June 2025 and scheduled for completion in 2028, covers engineering and procurement support for new equipment and brownfield modifications within the Sangachal Terminal. These works will facilitate grid power transmission and provide ride-through protection capabilities.