Saipem, in consortium with two affiliates of the State Oil Company of the Azerbaijan Republic (SOCAR), has been awarded three offshore contracts with a total value of approximately $700 million for BP’s Shah Deniz Compression Project in the Caspian Sea. Saipem’s share amounts to about $600 million, the company announced.
Under the new contracts, Saipem will be responsible for the transportation and installation (T&I) of a new 19,000-ton compression platform, as well as the engineering, procurement, construction, and installation (EPCI) of roughly 26 kilometers of subsea pipelines and associated permanent subsea infrastructure.
Offshore operations will utilize local Azerbaijani vessels, including the Khankendi subsea construction vessel and the Israfil Huseynov pipelay barge, both of which will be operated by Saipem. The work, part of an existing framework agreement signed on July 12, 2024, is expected to begin in the third quarter of 2026 and be completed by 2029.
This latest award further solidifies Saipem’s long-standing strategic presence in the Caspian region and reinforces its collaboration with BP and SOCAR, following previous major projects such as Azeri-Chirag-Gunashli and Shah Deniz.
“Securing these new contracts confirms Saipem’s strong operational capabilities and continued commitment to supporting Azerbaijan’s offshore energy development,” the company said.
Saipem, a global leader in engineering and construction for the energy and infrastructure sectors, continues to expand its role in large-scale offshore projects that advance regional energy efficiency and production capacity.
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