SOCAR-KBR signs two contracts with BP for energy projects in Azerbaijan

SOCAR-KBR, a joint venture between Azerbaijan's state oil company SOCAR and U.S. engineering firm KBR, has signed two contracts with BP for major energy projects in Azerbaijan, KBR said on Tuesday.

The contracts cover the electrification of the Sangachal terminal (STEL) and the Shah Deniz Compression (SDC) platform. Under the terms, SOCAR-KBR will provide detailed engineering and procurement services for both projects.

Financial terms were not disclosed. SOCAR-KBR will lead implementation using Azerbaijani specialists and support from KBR’s international team.

Construction on the $230 million STEL project is expected to start this year. Phase one is due to be completed by mid-2027, and phase two by the end of 2028.

The $2.9 billion SDC platform will enable recovery of low-pressure gas from the Shah Deniz field. It is scheduled to begin construction in 2025 and come online in 2029, adding an estimated 50 billion cubic metres of gas and 25 million barrels of condensate for export.

N.Tebrizli