BP is advancing several major projects in Azerbaijan, focusing on deep gas reserves, enhanced recovery, and production optimization at its key Caspian Sea assets, which already contribute approximately one-fifth of BP's total global hydrocarbon output.

Deep Gas Development at Azeri-Chirag-Guneshli (ACG)

BP is progressing with plans to tap into non-associated gas reserves at the ACG oilfield, the largest in Azerbaijan, where BP holds a 30.4% stake. These deep gas reservoirs, located below the oil formations, hold an estimated 113 to 283 billion cubic metres of resource potential. In 2024, BP completed a significant appraisal well targeting two gas reservoirs: the shallower NKP and the deeper PK. The well confirmed gas presence in the NKP reservoir, which is expected to be the primary source of gas production starting in the second half of 2025. The well also encountered high-pressure gas in the PK reservoir, with short-term test production planned for the first half of 2026. This appraisal milestone provides critical data to shape future development plans for commercializing these natural gas reserves.

Shah Deniz Compression (SDC) Project

At the Shah Deniz gas field, where BP holds a 30% stake, the company is focused on the $2.9 billion Shah Deniz Compression project to maximize recovery. This project is designed to access low-pressure gas reserves, extending the field's life and unlocking approximately 50 billion cubic metres of gas and 25 million barrels of condensate that would otherwise remain unreachable. The centerpiece is a new offshore platform with electric compression facilities, the third offshore installation at the field, which will also serve as a step toward future electrification of the existing Bravo platform and the entire field. The project includes brownfield work on the Shah Deniz Alpha and Bravo platforms, as well as upgrades to the Sangachal onshore terminal. Major contracts have been awarded, and construction of the topsides and jacket is progressing in local yards near Baku, with overall platform delivery and commissioning targeted for 2029.

Karabagh Oilfield Development

BP, which became operator of the Karabagh oilfield in June 2025 with a 35% stake, is advancing plans to streamline development using pipeline bundles. In March 2025, the company completed an ocean bottom node seismic survey ahead of schedule and is now processing the data. BP is also conducting a geological hazard survey to assess well integrity and preparing to construct a subsea bundle fabrication site near Baku, the first such facility in the Caspian basin. These pipeline bundles, which integrate production flowlines and control lines within an outer casing, will link a future offshore production platform to shore. The bundles will be assembled, tested, and prepared onshore before being floated for offshore installation.

Production Decline Management at ACG

BP is investing heavily to manage the natural decline in oil production at ACG through new technologies and disciplined reservoir management. In 2025 alone, BP invested $1.29 billion in ACG. The company is continuing its largest-ever 4D seismic programme, a five-year, 500 square kilometre surveillance effort launched in 2024, which has significantly enhanced subsurface understanding by tracking water and gas movement and identifying remaining oil. In 2025, BP drilled and completed 10 oil producer wells, five water injectors, and one gas injector, with plans for 25 wells in 2026. The company is advancing targeted decline management measures, including ramping up gas injection capacity on the Azeri Central East flank and reinstating water injection on Chirag. Well workover activity reached a record level of over 70 jobs in 2024. BP is deploying advanced technologies such as long-reach horizontal