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Akbar Novruz

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The UK Office of Financial Sanctions Implementation (OFSI) has amended the general licence covering Azerbaijan’s Shah Deniz gas project to reflect new sanctions prohibitions related to Iran.

OFSI said that on September 29, 2026, it amended General Licence INT/2025/7363752, which permits persons and relevant UK institutions to undertake activities necessary for the continued operation of the Shah Deniz project, subject to the conditions set out in the licence.

The amendment adds Regulation 17A, covering investments in relation to Iran, and Regulation 17C, concerning insurance and reinsurance services, of the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 to the prohibitions listed in paragraph 2 of the licence.

Both regulations entered into force on September 29, 2026.

The amendment means the existing general licence remains in place for Shah Deniz while incorporating the newly effective Iran-related sanctions restrictions into its framework.

OFSI originally issued General Licence INT/2025/7363752 on September 29, 2025, under Regulation 40 of the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019.

The licence allows persons and relevant UK institutions to undertake activities necessary for the continued operation of Shah Deniz, subject to specified conditions.

According to OFSI, permitted activities can include the provision of goods, services, financing or other forms of support required for the project’s continued operation, provided that no direct payment is made to Iran’s Naftiran Intertrade Company Limited (NICO) or any other designated person.

Payments due to NICO must instead be handled in a manner that ensures no funds or economic resources are made directly available to the designated entity.

OFSI’s page for General Licence INT/2025/7363752 was last updated on September 29, 2026, when both the general licence and its accompanying publication notice were updated.

Shah Deniz is one of Azerbaijan’s largest natural gas developments and a major source of supplies transported from the Caspian Sea to regional and European markets.

According to bp, the current production capacity of the Shah Deniz operating facilities stands at approximately 76.8 million standard cubic metres of gas per day, equivalent to around 28 billion cubic metres annually.

The shareholders in the Shah Deniz project are bp, the operator, with 29.99 percent; LUKOIL with 19.99 percent; TPAO with 19 percent; Southern Gas Corridor CJSC with 16.02 percent; NICO with 10 percent; and MVM with 5 percent.