The award of three new offshore contracts in Azerbaijan to Saipem, in a consortium with SOCAR affiliates BOS Shelf LLC and BOS Shelf International FZCO, represents a highly strategic step for the gas sector in the Caspian Sea and for Europe’s energy security. The contracts are part of the Shah Deniz Compression project, operated by bp, with a total value of around 700 million dollars, of which approximately 600 million are attributable to Saipem’s share.

The three offshore contracts and Saipem’s role
The new package of works awarded to Saipem has a complex technical scope, confirming the Italian group’s specialization in challenging offshore activities. In particular, the contracts include:

• the transport and installation (T&I) of a new 19,000-tonne compression platform in the Azerbaijani sector of the Caspian Sea;
• the engineering, procurement, construction and installation (EPCI) of around 26 km of subsea pipelines, essential to connect the new platform to existing infrastructure;
• the execution of all the main permanent subsea works required for the full operation of the compression system.

These are activities with a high engineering content, which fit perfectly with Saipem’s positioning as a global contractor specialized in the execution of large offshore energy projects.

The vessels deployed and the focus on local content
A key element of these contracts is the use of local marine assets, in line with the strategy of enhancing Azerbaijan’s national capabilities. For offshore operations, the following vessels will be deployed:

• the Khankendi, a state-of-the-art subsea construction vessel, owned by the Shah Deniz consortium;
• the Israfil Huseynov pipelaying barge, owned by the company “Azerbaijan Caspian Shipping”.

Both units will be managed and operated by Saipem for the execution of the project. This choice is particularly significant as it confirms the commitment to strengthening local content, transferring know-how and technologies to the Azerbaijani industrial fabric and creating value not only in economic terms but also in terms of skills development over the long term.

Shah Deniz, the Caspian Sea and energy security
The Shah Deniz field is one of the most important in Azerbaijan and plays a key role in the Southern Gas Corridor, which delivers additional and alternative gas volumes to the European Union through South Caucasus infrastructure, the TANAP pipeline and TAP.

The increase in compression capacity, at the core of these three new contracts, has a direct impact on the ability to export gas to European markets. In a geopolitical context marked by high volatility and the need to diversify supply sources, investments in infrastructure such as those envisaged under the Shah Deniz Compression project take on a strategic value that goes well beyond Azerbaijan’s national borders.

In my view, this type of intervention represents one of the most concrete responses to Europe’s energy security needs: reinforcing existing, reliable supply chains that are already well integrated into the infrastructure network, rather than relying solely on new corridors that still need to be developed.

Timeline and continuity of Saipem’s presence in the region
According to the information released, the offshore activities related to the Shah Deniz Compression contracts will start in the third quarter of 2026, with completion expected in 2029. This therefore represents a multi-year time horizon that consolidates Saipem’s presence in the Caspian Sea and strengthens a long-standing collaboration with bp in the Azeri-Chirag-Gunashli and Shah Deniz fields.

From an industrial standpoint, the duration of the project offers operational stability both to the contractor and to the associated supply chain, enabling medium-term planning of resources, fleet, yards and services. In my opinion, in a cyclical sector such as oil & gas, the possibility of securing multi-year contracts with leading international operators is a crucial competitive factor.

Industrial impact and outlook
The award of these three offshore contracts in Azerbaijan confirms Saipem’s ability to position itself as a reference partner for complex projects in the natural gas segment. The combination of engineering know-how, a specialized fleet and strong integration with local players makes it possible to efficiently address the particularly demanding technical and logistical challenges typical of the Caspian Sea.

Looking ahead, the strengthening of compression at Shah Deniz can also be interpreted as an investment in the future flexibility of the energy system. Well-designed and modernized gas infrastructure can, over time, adapt to different energy mix scenarios, supporting the transition towards lower-impact sources without compromising security of supply.

Overall, the new contracts represent an important piece in Saipem’s development strategy in the Caspian region and, at the same time, a positive signal for the entire value chain of technologies and services related to natural gas, which continues to play an essential role in global energy transition pathways.