BP has Oil and Gas Project and Exploration Access in Azerbaijan

From News Desk

bp, together with its partners, has entered into a series of agreements that will build and expand on its major oil and gas interests in Azerbaijan, paving the way for growth and additional production while deepening its partnership with the country and state oil company, SOCAR.

The agreements, signed during Baku Energy Week, include the final investment decisions for the next major phase of development of the giant Shah Deniz gas field – Shah Deniz Compression – as well as for two projects – for terminal electrification and solar power – that together are expected to enable operational emissions reduction. They also include agreements for bp to access to two new exploration and development licences and introduce a new partner to accelerate exploration on a third.

These agreements represent progress against bp’s strategy to grow long-term shareholder value, contributing to its goal of growing its upstream business, as well as underlining bp’s continuing commitment to Azerbaijan.

Gordon Birrell, EVP production & operations said, “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. 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 continued, “The next phase of development for Shah Deniz – a truly world-class gas field – 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.”

These projects are fully accommodated within bp’s financial frame. Shah Deniz Compression is one of the 8-10 major projects expected to start up between 2028 and 2030, as disclosed at bp’s 2025 capital markets update. It is expected to contribute to growing bp’s global upstream production to 2.3-2.5mmboed by 2030, with capacity to increase further to 2035.