bp, in collaboration with its partners, has signed a series of landmark agreements aimed at expanding its oil and gas portfolio in Azerbaijan, reaffirming its long-standing partnership with the country and its state oil company, SOCAR. These developments were formalised during Baku Energy Week and mark a significant step towards growth, increased production, and emissions reduction in bp’s upstream operations.
Key among the agreements is the final investment decision on the next major phase of the Shah Deniz gas field – Shah Deniz Compression. This world-class gas field plays a vital role in delivering energy to European markets, and the new phase will enable access to additional resources and extend field life and production capacity.
In addition to Shah Deniz Compression, bp has committed to two further projects focused on emissions reduction: terminal electrification and the development of a new solar power project. Together, these initiatives are expected to reduce operational emissions while freeing up additional gas volumes for export.
The agreements also grant bp access to two new exploration and development licences, while enabling the introduction of a new partner to accelerate exploration on a third block. These moves align with bp’s strategy of growing its upstream business and long-term shareholder value, while maintaining its financial discipline.
Gordon Birrell, EVP of production & operations at bp, commented:
“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 added:
“The next phase of Shah Deniz will support vital gas supplies to Europe, and our innovative electrification and solar projects demonstrate how bp is lowering emissions while enhancing energy security. We are pleased to continue working closely with SOCAR and other partners to unlock further potential across the region.”
bp has operated in Azerbaijan for 33 years, having led the development of key assets including the Azeri-Chirag-Deepwater Gunashli (ACG) oil field, Shah Deniz, and the Sangachal terminal, as well as associated infrastructure such as the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and the Southern Gas Corridor (SGC) gas network.
The Shah Deniz Compression project is one of bp’s 8–10 major global developments scheduled for start-up between 2028 and 2030. It is expected to contribute to the company’s aim of increasing upstream production to 2.3–2.5 million barrels of oil equivalent per day by 2030, with additional growth potential through to 2035.
