bp and its partners have signed a series of strategic agreements aimed at expanding their substantial oil and gas portfolio in Azerbaijan. The deals are set to drive future growth, boost production, and strengthen collaboration with the Azerbaijani government and state energy firm SOCAR.
Announced during Baku Energy Week, the agreements include final investment decisions for the next key development phase of the Shah Deniz gas field, known as Shah Deniz Compression, as well as for two additional projects: terminal electrification and a new solar power initiative, both designed to help reduce operational emissions.
The package also grants bp access to two new exploration and development licenses, and brings in a new partner to help accelerate exploration on a third license area.
These developments mark a significant step forward in bp’s strategy to increase long-term shareholder value and expand its upstream business, reaffirming its longstanding commitment to Azerbaijan.
“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,” said Gordon Birrell, Executive Vice President of production and operations at bp. “As we deliver our strategy of growing our upstream, we will build on our strong positions in regions like Azerbaijan, and on the deep relationships we have with the government and our partners,” he added.
Birrell revealed that the next phase of development for Shah Deniz will access additional resources, extend production and support continued delivery of important gas supplies to European customers. “Innovative linked electrification and solar projects will support lower operational emissions in Azerbaijan while freeing up fuel gas for export. And we look forward to working with SOCAR and TPAO to progress exploration for further opportunities,” he added.
bp has operated in Azerbaijan for over three decades. It has led the development of key energy infrastructure including the Azeri-Chirag-Deepwater Gunashli (ACG) oil field, the Shah Deniz gas field, and the Sangachal terminal. The company also played a central role in building the region’s critical export routes—the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and the Southern Gas Corridor (SGC) for natural gas.
