BP set to take over offshore natural gas project in Azerbaijan, sources say - Finance news and analysis from Global Banking & Finance Review
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BP set to take over offshore natural gas project in Azerbaijan, sources say

Published by Global Banking & Finance Review

Posted on May 28, 2026

2 min read

· Last updated: May 28, 2026

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BP Set to Take Over Offshore Babek Gas Project in Azerbaijan

BP's Expansion in Azerbaijan's Energy Sector

BP to Operate Babek Gas Field

BAKU, May 28 (Reuters) - Energy major BP will become the operator of a large offshore natural gas production project in Azerbaijan - the Babek gas field - three industry sources told Reuters on Wednesday.

Significance of Azerbaijan's Energy Reserves

BP's Existing Presence

BP already has significant exposure to oil and gas production in the South Caucasus country, whose energy reserves became more significant for Europe after it decided to cut its dependence on Russia, once a major supplier of commodities to the continent.

Upcoming Announcement

The three sources said Azerbaijan's state energy company SOCAR and BP would announce the agreement on the offshore Babek field on June 1.

Babek Field Details

Estimated Reserves

The field is estimated to hold around 400 billion cubic metres of gas and 80 million tonnes of condensate.

Project Structure

SOCAR and BP did not immediately reply to requests for comment.

The Babek field, currently part of a SOCAR-led unit, will become a separate project operated by BP, the sources said.

Reporting Credits

(Reporting by Nailia Bagirova; writing by Vladimir SoldatkinEditing by Andrew Osborn)

Key Takeaways

  • BP’s expanded role boosts its strategic importance in Azerbaijan, where it already operates major assets like Azeri‑Chirag‑Gunashli and Shah Deniz, deepening Western energy diversification efforts away from Russia (bp.com).
  • Babek is part of the Umid‑Babek block, which has been under SOCAR control via a Risk Service Agreement since 2017, with BP now poised to step in as operator of the separate Babek structure (caspianbarrel.org).
  • The Babek field’s resource potential—around 400 billion m³ of gas and 80 million tonnes of condensate—makes it a significant prospective asset in the Caspian Sea as Europe seeks alternative gas supplies (trend.az).

References

Frequently Asked Questions

What gas project is BP set to operate in Azerbaijan?
BP is set to become the operator of the Babek offshore natural gas field in Azerbaijan.
How much gas does the Babek field contain?
The Babek field is estimated to hold around 400 billion cubic metres of gas and 80 million tonnes of condensate.
When will BP and SOCAR announce the Babek field agreement?
BP and SOCAR are expected to announce the agreement on June 1.
Why is Azerbaijan's energy sector significant for Europe?
Azerbaijan's energy reserves are significant for Europe as the continent reduces dependence on Russia.
Who is currently operating the Babek field?
The Babek field is currently part of a SOCAR-led unit and will become a separate project under BP's operation.

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