BP Awards Engineering and Procurement Support Contracts to SOCAR-KBR JV

UK-headquartered energy giant BP has corroborated the award of engineering and procurement support assignments to the SOCAR-KBR joint venture (JV), consisting of KBR and Azerbaijan’s SOCAR. These contracts will support the Shah Deniz compression (SDC) gas field development and the Sangachal Terminal Electrification (STEL) project, two significant projects in Azerbaijan’s oil and gas sector.

Significant Milestone in Project Execution

BP’s Vice President of Projects for the Azerbaijan-Georgia-Türkiye region, Middle East, and Africa, Matt Kirkham, expressed his pride in reaching a significant milestone in the advancement of the SDC and STEL projects. He highlighted the successful completion of the sourcing phase and the award of key contracts to the SOCAR-KBR joint venture, citing their expertise in similar Caspian region projects as a decisive factor in the selection process.

Scope of Work

The SOCAR-KBR JV will provide engineering and procurement support for the construction of topside facilities for the SDC platform, jacket and piles for the SDC platform, brownfield installations, and system design engineering for integration with the subsea system. The contract also includes services for brownfield modifications inside the Sangachal terminal to enable grid power transmission and ride-through protection.

Project Details

The $2.9 billion SDC project aims to access and produce low-pressure gas reserves in the Shah Deniz field and maximize resource recovery. It involves the installation of a new compression facility and an electrically-powered unmanned compression platform, with compressors onboard to serve as a host facility for gas compression from the Shah Deniz Alpha and Shah Deniz Bravo platforms.

On the other hand, the STEL project will connect the Sangachal terminal to the national grid of Azerbaijan, enabling the removal of gas turbines currently used for power generation and reducing operational emissions.

Construction Timeline

Construction activities for both projects have already begun, with the SDC project expected to be completed by 2029 and the STEL project in two stages by the end of 2028. These projects will create up to 4,000 jobs and contribute to the development of Azerbaijan’s oil and gas infrastructure.

This partnership between BP, SOCAR, and KBR marks a significant step forward in the energy sector of Azerbaijan, showcasing the collaborative efforts of international and local players in advancing major projects in the region.