BP to build pipeline plant in Azerbaijan for Karabakh project

British energy major bp plans to construct a manufacturing facility in Azerbaijan to produce subsea pipeline assemblies for the development of the Karabakh offshore oil and gas field, according to an environmental impact assessment report.

The project documentation outlines that the plant will be located near Cape Bandovan, within the Salyan and Garadagh districts, on a coastal plain approximately 20 km south of the settlement of Alat, and around 85 km south-west of Baku, Caliber.Az reports.

The facility will include production areas, routes for pipeline module installation, a marine launch system for offshore towing, pipe storage yards, utilities infrastructure, an operational phase accommodation camp, offices, and a gravel access road.

Construction is expected to begin in the third quarter of 2026 and be completed by the first quarter of 2028.

The plant will be used for assembly and testing of subsea pipeline systems both for the Karabakh development and other prospective offshore oil and gas projects in the Caspian Sea.

Earlier, during the Baku Energy Week on 3 June 2025, bp signed an agreement with Azerbaijan’s state oil company SOCAR to acquire a 35% stake in the Karabakh field development project, with SOCAR retaining the remaining 65%.

According to preliminary estimates cited in the report, the Karabakh field holds geological oil reserves exceeding 60 million tonnes, of which around 21 million tonnes are recoverable, alongside 13 billion cubic metres of gas.

The report also references Fitch Ratings projections indicating peak production could reach 7.5 million barrels per day.

By Aghakazim Guliyev