BP Plans Azerbaijan Pipeline Assembly Plant for Karabagh Offshore Project

BP is planning a new pipeline assembly facility in Azerbaijan to support development of the Karabagh offshore field and future Caspian energy projects.

(P&GJ) — BP is preparing to build a pipeline assembly facility in Azerbaijan to support development of the offshore Karabagh field, according to environmental assessment documents cited by Report.az.

Construction on the facility is expected to begin in the third quarter of 2026 and continue through early 2028. The site will be located near the settlement of Bandovan, south of Alat, with commissioning targeted by the end of the first quarter of 2028.

The planned complex will include fabrication workshops, storage areas, rail infrastructure for moving pipeline assemblies, marine launch capabilities and operational support facilities. The location was selected because of its access to existing infrastructure and proximity to the Caspian Sea, according to Report.az.

The facility is expected to manufacture pipeline bundles for the Karabagh offshore development, though the infrastructure could later support additional Caspian energy projects. Pipeline bundles typically combine multiple flowlines and control systems inside a protective outer casing and are used in subsea oil and gas developments.

BP became operator of the Karabagh project after signing an agreement with SOCAR in 2025 to acquire a 35% stake in the field. SOCAR retains the remaining ownership interest.

The Karabagh field is located in the Caspian Sea east of Baku near the Gunashli field. Early estimates place recoverable reserves at roughly 21 million metric tons of oil and 13 billion cubic meters of natural gas.