BP Deepens Its Azerbaijan Presence with Caspian Expansion Deal

BP, in partnership with SOCAR and TPAO (Türkiye), has taken another major step forward in Azerbaijan by securing new interests in major Caspian Sea oil and gas blocks. Announced during Baku Energy Week, this multi-stakeholder agreement highlights BP’s continued confidence in the region’s long-term hydrocarbon assets

Big Names, Bigger Moves

• Turkey’s TPAO is joining forces in this venture with a 30% stake.
• BP also confirmed a $2.9 billion investment to expand production in the Shah Deniz gas field, aiming to tap low-pressure reserves and boost output by an estimated 50 billion m³ of gas and 25 million barrels of condensate.
• Additionally, BP acquired stakes in two more offshore exploration and development blocks alongside SOCAR in the Caspian Sea.

What It Means for Production & Energy Strategy

BP’s expansion reflects their broader upstream ambitions — increasing output from 2.3 to 2.5 million barrels of oil equivalent per day by 2030, bolstered by rising production in Azerbaijan’s flagship fields reuters.com. For Azerbaijan, this deepens its role in global energy supply, with targeted gas export growth of 8 billion m³ by 2030.

Geopolitical and Market Relevance

• Strategic alliances with SOCAR and TPAO not only spread political and operational risk but also signal a regional energy strategy that’s increasingly resilient and collaborative.
• With shifts in global gas supply chains—particularly Europe’s pivot away from traditional sources—this expansion positions Azerbaijan and BP at a crucial junction in the Southern Gas Corridor.