Saipem, in a consortium with two companies affiliated with the State Oil Company of the Azerbaijan Republic (SOCAR), has been awarded three offshore contracts worth a total of approximately $700 million (Mn) for bp’s Shah Deniz Compression Project in the Caspian Sea, according to a company announcement. Saipem’s share of the contract value is approximately $600 Mn.

The scope of work includes the transportation and installation (T&I) of a new 19,000-ton compression platform. Additionally, Saipem will manage the engineering, procurement, construction, and installation (EPCI) of approximately 26 kilometers of subsea pipelines and associated permanent subsea infrastructure.

Offshore operations will utilize local vessels, including the Khankendi subsea construction vessel and the Israfil Huseynov pipelay barge, which will be operated by Saipem.

The work, which falls under an existing framework agreement from July 12, 2024, is scheduled to begin in the third quarter (Q3) of 2026 and is expected to be completed in 2029.

This award strengthens Saipem’s strategic position in the Caspian region, building on its established partnership with bp and SOCAR through previous work on major projects like the Azeri-Chirag-Gunashli and Shah Deniz fields.

Saipem is a global leader in the engineering and construction of major projects for the energy and infrastructure sectors. It has a strong operational presence in Azerbaijan, supporting major offshore projects in partnership with bp and SOCAR, including the Azeri-Chirag-Gunashli and Shah Deniz fields.