A joint venture (JV) comprising KBR and SOCAR has been awarded two contracts by BP to enhance Azerbaijan's energy infrastructure.

The first contract is for the Sangachal Terminal Electrification (STEL) project, the largest oil and gas reception terminal in Azerbaijan, and the second is for the Shah Deniz compression (SDC) gas field.

The SOCAR-KBR JV will deliver detailed engineering design solutions and procurement services for both projects, building on their prior involvement in the STEL and SDC projects' front-end engineering design (FEED) stages.

Comprising more than 95% Azerbaijani professionals, the JV's Baku-based team will execute these projects, supported by KBR's international resources.

KBR sustainable technology solutions president Jay Ibrahim said: “KBR has been delivering world-scale energy solutions in the region for over three decades, and these projects mark a significant step in Azerbaijan’s clean energy security objectives.

“The Sangachal terminal, which was designed by KBR and serves as a vital link between Azerbaijan and the rest of Europe, will enable the country’s transition to national grid supply and reduce emissions. The Shah Deniz compression project marks the next stage in the evolution of delivering safe and efficient solutions.”

In related developments, KBR secured a FEED contract in November 2024 to expand the Qalhat LNG complex in Sur, Oman.

The expansion includes a new 3.8 million tonnes per annum (mtpa) LNG train, along with enhancements to the complex’s utilities, storage, and loading facilities.

Furthermore, SOCAR has reportedly entered fresh contracts with Exxon Mobil and BP to conduct oil and gas prospecting within the nation.

The purpose of this partnership is to maintain Azerbaijan's oil production levels, which are expected to stay around 582,000 barrels per day (bpd) for the upcoming five years, supported by investments from Western energy companies.