BP Greenlights New Caspian Project and Renews Long-Term Operations Contract in Azerbaijan

BP has delivered a significant vote of confidence in Azerbaijan's energy sector, greenlighting a major new Caspian Sea development project while simultaneously renewing its long-term offshore operations and maintenance contract — moves that reinforce the British major's position as the dominant international energy company in the country.

The new project approval follows BP's acquisition in June 2025 of a 35 percent interest in the Karabakh oil field and the Ashrafi-Dan Ulduzu-Aypara (ADUA) area, where it also assumed the operator role. That acquisition added meaningful production and reserve volumes to BP's Azerbaijani portfolio and signals the company's intent to grow, not merely maintain, its Caspian position.

BP's long-term offshore operations and maintenance contract, renewed in February 2026, covers the management of Azerbaijan's critical offshore oil and gas infrastructure in the Caspian Sea. The renewal is significant not just commercially but strategically — it signals that BP sees its Azerbaijani operations as a multi-decade commitment at a time when some international oil companies have been reducing exposure to complex geopolitical environments.

A new $6 billion production platform, recently launched in the Caspian, has begun to ease the gradual output decline that had characterized BP's existing Azerbaijani operations. According to OC Media reporting, the platform's production ramp-up is on track, with output levels stabilizing and expected to grow through 2027.

The scale of BP's Caspian presence is remarkable. Together with SOCAR, BP operates the Azeri-Chirag-Gunashli (ACG) field complex — one of the largest oil developments in the post-Soviet space — and the Shah Deniz gas field, which supplies gas into the Southern Gas Corridor and ultimately to European markets. The company's Azerbaijani operations remain among the most profitable in its global portfolio.

For Baku, retaining BP's deep involvement in its upstream sector is a strategic priority. The British company brings world-class technical expertise, international financing relationships, and reputational credibility that facilitates Azerbaijan's broader energy diplomacy. BP's Q1 2026 results from Azerbaijan showed solid production volumes and healthy financial returns, affirming that the Caspian remains a cornerstone of the company's global upstream strategy.

The broader investment climate in Azerbaijan's energy sector has attracted renewed attention. SOCAR's recent partnership with SLB to revamp two Caspian Sea platforms is another indicator of Baku's determination to maintain and grow upstream capacity even as global energy transition pressures mount.

Further Reading:
BP in Azerbaijan: Three Decades of Caspian Partnership
Caspian Sea Oil Production: Output Trends and Forecasts for 2026