British energy company BP said it signed a $378 million contract for a construction vessel in Azerbaijan for development of the offshore Shah Deniz gas field.
BP, on behalf of the consortium managing the gas field in the Caspian Sea, signed the contract with Baku Shipyard to build a construction vessel to install subsea equipment for the second phase of Shah Deniz over 11 years ending in 2027.
Gordon Birrell, BP's regional president, said the contract represents the consortium's commitment to sourcing local contractors for gas field development.
"[We] believe that Baku Shipyard is well placed to support Azerbaijan's growth in the oil and gas sector," Rovnag Abdullayev, president of consortium member State Oil Company of Azerbaijan Republic, said in a statement.
BP has awarded more than $1 billion in development contracts since selecting the Trans-Adriatic pipeline as its option for Shah Deniz last year.
The British company said the construction vessel would be ready by 2017. First gas from the giant offshore natural gas field will be delivered in late 2018.
European leaders view Azeri natural gas as an option to add diversity to an energy sector that depends heavily on Russia.
