A consortium led by Milan-based oilfield services company Saipem has won three new offshore contracts for BP’s Shah Deniz Compression project in Azerbaijan.

BOS Shelf LLC and BOS Shelf International, affiliates of the State Oil Company of the Azerbaijan Republic ( Socar ), are members of the consortium. The contracts are valued at US$700 million, with Saipem’s share amounting to US$600 million.

Saipem’s scope of work encompasses the transportation and installation of a new 19,000-tonne compression platform in the Azerbaijan sector of the Caspian Sea, as well as the engineering, procurement, construction, and installation of approximately 26 kilometres of offshore pipelines to connect the new compression platform to the existing facilities, and all major permanent subsea works.



The main vessels employed for the offshore operations will be the Khankendi, a state-of-the-art subsea construction vessel owned by the Shah Deniz consortium, and the pipelay barge Israfil Huseynov, owned by Azerbaijan Caspian Shipping joint stock company. Both vessels will be managed and operated by Saipem for the execution of the project.

The offshore activities are expected to start in the third quarter of 2026, with completion targeted for 2029.



Saipem says the new contracts build on its longstanding and successful collaboration with BP as operator in the Caspian Sea, including projects covering 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, both offshore and onshore. The company has five fabrication yards and an offshore fleet of 17 construction vessels and 13 drilling rigs.