Baku: The Shah Deniz consortium has awarded a $156 million contract for the construction of the Shah Deniz Compression (SDC) platform jacket. This significant advancement in the SDC project, sanctioned earlier this year, was announced by bp to AZERTAC.
According to Azerbaijan State News Agency, the contract has been awarded to BOS Shelf LLC and BOS Shelf International FZCO. It encompasses the engineering, fabrication, and assembly of the jacket and piles for the SDC platform. Specifically, the contract includes shop and erection engineering, the rolling of tubulars, and the fabrication and assembly of a 9,900-tonne jacket and 5,800-tonne pin and skirt piles. The scope also covers the commissioning of installation systems and the load-out and sea-fastening of the completed jacket.
All fabrication activities are set to be carried out at the Heydar Aliyev Baku Deepwater Jackets Factory yard, which is owned by BOS Shelf. The project will utilize local infrastructure and resources, with up to 97% of the workforce expected to be Azerbaijani nationals. The project aims to contribute approximately 2 million work-hours. Work under this contract is planned to start in the fourth quarter of 2025, with completion targeted for the first quarter of 2028.
Ilgar Mammadov, bp’s project general manager, stated, “This marks another significant milestone for the SDC project and for bp as operator. It reflects the skill and dedication of our teams, the strength of our enduring local partnerships, and our shared commitment to delivering this project to the highest standards of safety, quality, and efficiency.” The successful fabrication of previous jackets at BOS Shelf’s BDJF yard gives confidence in the timely delivery of the SDC platform jacket.
The $2.9 billion SDC project is the next stage of development for the Shah Deniz gas field. It aims to access low pressure gas reserves and maximize resource recovery, enabling around 50 billion cubic meters of additional gas and 25 million barrels of additional condensate production for export.
The project will also install a new compression facility, an electrically-powered unmanned compression platform, in 85 meters of water depth. Positioned approximately 3 kilometers from the existing Shah Deniz Bravo platform, the SDC platform will host gas compression, ensuring export gas is compressed before reaching the Sangachal terminal onshore.
Additional associated facilities will be installed offshore in the Shah Deniz contract area, with brownfield works to be conducted at existing sites. Ongoing construction activities are expected to be completed in 2029, with the first gas for compression anticipated from the SDA platform in 2029 and from the SDB platform in 2030.