Baku: The Shah Deniz consortium has announced the award of a $321 million contract to Azfen for the fabrication of the topsides unit for the Shah Deniz Compression (SDC) project. This development follows the final investment decision announced for the SDC project in June 2025 and signifies progress in the project’s implementation.
According to Azeri-Press News Agency, the contract encompasses fabrication, assembly, installation, and integration of an 8,500-tonne topsides unit for the SDC platform. The fabrication work will be conducted domestically at Azfen’s Bayil yard, utilizing local infrastructure and resources.
Construction activities for the topsides unit are scheduled to start in the fourth quarter of 2025, with an expected completion by the end of 2028. These activities are anticipated to generate over 3,000 jobs, with more than 90% of the positions being filled by the national workforce.
Ewan Drummond, bp senior vice president projects, commented on the milestone’s significance for the SDC project, the Shah Deniz partnership, and the country. He emphasized the dedication of the teams, the strength of local partnerships, and the shared commitment to safety, quality, and capital efficiency.
Azfen was chosen due to their proven capabilities and track record in topsides construction and delivery in Azerbaijan. Their upgraded Bayil fabrication yard provides the necessary facilities to integrate and safely load out the topsides unit, crucial for keeping the SDC project on schedule and within budget.
The project aims to enable approximately 50 billion cubic metres of additional gas and 25 million barrels of additional condensate production and export from the Shah Deniz field. It involves the installation of a new compression facility, an electrically-powered unmanned compression platform, or Normally Unattended Installation (eNUI), in 85 metres water depth, around 3 kilometres from the existing Shah Deniz Bravo (SDB) platform.
Equipped with four 11-MW compressors, the SDC platform will serve as a host facility for gas compression from the Shah Deniz Alpha (SDA) and SDB platforms. Before reaching the Sangachal terminal onshore, export gas from the platforms will be compressed at SDC.
The project also involves several associated facilities offshore in the Shah Deniz contract area and additional brownfield works at SDA, SDB, and the Sangachal terminal. Construction activities are set to commence in 2025, with completion expected in 2029, ready to receive first gas for compression from the SDA platform in 2029 and from the SDB platform in 2030.