Saipem, in consortium with BOS Shelf LLC and BOS Shelf International FZCO, has been awarded three new offshore contracts for the Shah Deniz Compression project operated by bp in Azerbaijan. The announcement was made on October 15, 2025, in Milan, Italy. The overall value of the contracts is approximately 700 million USD, with Saipem's share amounting to 600 million USD. BOS Shelf LLC and BOS Shelf International FZCO are both affiliates of the State Oil Company of the Azerbaijan Republic, SOCAR.

Project Scope and Technical Details

Saipem's scope of work encompasses the Transportation and Installation (T&I) of a new 19,000-ton compression platform in the Azerbaijan sector of the Caspian Sea. The project also includes the Engineering, Procurement, Construction, and Installation (EPCI) of approximately 26 km of offshore pipelines to connect the new compression platform to the existing facilities, along with all major permanent subsea works.

The main vessels employed for 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 the "Azerbaijan Caspian Shipping" Closed Joint-Stock Company. Both vessels will be managed and operated by Saipem for the execution of the project.

Timeline and Framework Agreement

The offshore activities are expected to commence in the third quarter of 2026, with completion targeted for 2029. The contracts will be executed under the existing framework agreement in force between the parties, as announced on July 12, 2024. The use of local naval assets and the integration with Azerbaijani partners confirm the commitment to enhancing the country's skills and technologies and contributing to local content.

Strategic Significance and Company Background

The award of these new contracts reinforces Saipem's presence in the region and confirms its reputation as a reliable partner in the execution of major projects. The project further builds on the long-standing and successful collaboration with bp as operator in the Caspian, which has included various projects executed for 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 is organized as "One Company" with business lines including Asset Based Services, Drilling, Energy Carriers, Offshore Wind, and Sustainable Infrastructures. The company maintains 5 fabrication yards and an offshore fleet of 17 construction vessels, all of which are owned, and 13 drilling rigs, of which 9 are owned.

Always oriented towards technological innovation, the company's purpose is "Engineering for a sustainable future." Saipem is committed to supporting its clients on the energy transition pathway towards Net Zero, with increasingly digital means, technologies, and processes geared for environmental sustainability. Listed on the Milan Stock Exchange, Saipem is present in more than 50 countries around the world and employs about 30,000 people of over 130 nationalities.

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