Baku: The Shah Deniz Compression (SDC) project is progressing safely and ahead of schedule, as reported by APA-Economics citing BP's operational report in Azerbaijan for the first half of 2026. According to Azeri-Press News Agency, key advancements have been made in the fabrication of the SDC platform's topsides and jacket at the Bayil fabrication yard and the Heydar Aliyev Baku Deepwater Jackets Factory. Progress is steady in primary steel and structural components, including pin piles, jacket elements, and subsea structures.

Marine and subsea engineering activities are on track with the detailed design progressing as planned. Key technical reviews have been successfully completed, and the fabrication of the high-voltage subsea interconnector power and fiber-optic cable, as well as subsea pipe sections, has been completed. Procurement efforts are advancing across several critical package streams, aligning with fabrication and installation timelines.

The $2.9 billion SDC project is designed to access and produce low-pressure gas reserves in the field, maximizing resource recovery. It is expected to enable the production and export of approximately 50 billion cubic meters of additional gas and 25 million barrels of condensate. The project includes the installation of a new compression facility, an electrically-powered unmanned compression platform, and several associated facilities offshore. It also involves brownfield works at the Shah Deniz Alpha (SDA) and Bravo (SDB) platforms and the Sangachal terminal.

The construction of the SDC platform is expected to be completed in 2029, preparing the facility to receive first gas for compression from the SDA platform in 2029 and from the SDB platform in 2030. During the first half of 2026, additional perforation activities were completed on the SDA09, SDA07, and SDA04 wells, and drilling commenced on the SDA12 well.

The Shah Deniz 2 project is advancing with its wells program using the Istiglal and Heydar Aliyev rigs. In the first half of 2026, the Istiglal rig completed the SDD05 well on the West flank and undertook intervention activities on the SDF02 well. The Heydar Aliyev rig completed the SDH05 well on the East North flank and began maintenance activities for the SDD06 well on the West flank. A total of 24 wells have been drilled for Shah Deniz 2 to date, distributed across various flanks.