BP and its partners have finalized a $2.9 billion investment to expand production at Azerbaijan’s Shah Deniz gas field, signaling a strategic pivot back to fossil fuels amid Europe’s push to replace Russian energy. The project aims to unlock 50 billion cubic meters (bcm) of additional gas and 25 million barrels of condensate over its lifespan by tapping low-pressure reserves.
BP—which operates Shah Deniz with a 29.9% stake—reported the field produced 28 bcm of gas and 35 million barrels of condensate in 2024. Partners include LUKOIL (Russia), TPAO (Turkey), SOCAR (Azerbaijan), and MVM (Hungary). The move aligns with BP’s broader shift away from renewables, targeting 2.3–2.5 million barrels of oil equivalent daily by 2030.
Separately, BP secured stakes in two Caspian Sea exploration blocks with Azerbaijan’s SOCAR and announced plans to begin production at the Karabakh offshore field (50–60 million tons reserves) by 2029. Azerbaijan aims to sustain oil output at 582,000 barrels per day through 2030 while boosting gas exports by 8 bcm, capitalizing on Western investment. ExxonMobil also inked an onshore exploration deal with SOCAR this week.