British energy major BP plans to begin construction in the third quarter of 2026 of a pipeline bundle manufacturing facility in Azerbaijan for the development of the Karabagh offshore field.
Report informs that, according to the final Environmental Impact Assessment (EIA) for the project, the facility will include a production workshop, rail lines for pipeline assemblies, a sea launch facility, pipe storage areas, engineering and utility infrastructure, an operational accommodation camp, offices, and a gravel-surfaced access road. The plant will be located in the settlement of Bandovan, approximately 20 km south of Alat. Construction is scheduled to run from Q3 2026 to Q1 2028, with commissioning planned for the end of the first quarter of 2028.
The Bandovan site was selected due to suitable terrain conditions, proximity to existing infrastructure, and direct access to the Caspian Sea.
The new facility will primarily produce pipeline bundles for the Karabagh development project, with potential future use for other Caspian offshore projects once initial works are completed.
Pipeline bundles are pre-fabricated pipeline assemblies that typically include production flowlines, control lines, and injection lines housed within an outer protective casing. When fully assembled, they can reach lengths of around 5–6 km.
On June 3, 2025, during the Baku Energy Week, BP signed an agreement with the State Oil Company of Azerbaijan (SOCAR) to acquire a 35% stake in the Karabagh field development project. The remaining 65% is held by SOCAR. BP serves as operator of the project.
The Karabagh field is located 120 km east of Baku and 20–25 km from the Gunashli field, at a depth of 150–200 meters. Preliminary estimates suggest geological oil reserves exceeding 60 million tons, of which 21 million tons are considered recoverable oil and 13 billion cubic meters of gas.
According to Fitch Ratings, peak production at the offshore Karabagh field is expected to reach 7.5 million barrels per day.