Shah Deniz consortium awards $321 million contract to Azfen for compression platform

The Shah Deniz consortium has signed a $321 million contract with the Azerbaijani company Azfen to manufacture the topside block for the Shah Deniz Compression (SDC) platform at the Shah Deniz gas field.

The contract covers the fabrication, assembly, installation, and integration of an 8,500-tonne topside block for the SDC platform, Caliber.Az reports per bp-Azerbaijan.

Production will take place in Azerbaijan at Azfen’s Bayil facility, utilising local infrastructure and resources.

Construction is scheduled to begin in the fourth quarter of 2025 and is expected to be completed by the end of 2028.

The project is anticipated to create over 3,000 jobs, with more than 90% to be filled by local specialists, BP-Azerbaijan said.

The SDC project, valued at $2.9 billion, represents the next stage in the development of the giant Shah Deniz gas field. It aims to access and produce low-pressure gas reserves while maximising resource recovery.

Once operational, the project is expected to deliver an additional 50 billion cubic metres of gas and approximately 25 million barrels of condensate from Shah Deniz.

By Aghakazim Guliyev