An oil platform off the Caspian sea coast near Baku
Azerbaijan enjoys rare upstream FID
BP and partners have reached a $2.9b FID on a new phase at Shah Deniz, but slow progress on other gas projects is attributed to a lack of European support
BP and its partners greenlit a $2.9b compressor project at the giant offshore Shah Deniz gas field at the start of June, marking the first FID on an upstream development in Azerbaijan since 2018. The approval is a boon for the country’s oil and gas sector, generating fresh contracts, jobs and state revenue. Yet, the six-year dearth of FIDs means Azerbaijan will fail to ramp up gas exports to the EU to 20bcm/yr by 2027—as targeted in a memorandum the government signed with the European Commission in May 2022. Baku has repeatedly attributed the lack of new investment to insufficient financial backing from European banks and a reluctance among EU gas buyers to commit to long-term supply contrac
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
