BP Stated That Sanctions Against LUKOIL Do Not Affect Oil Production at Shah Deniz
Production at the Shah Deniz field in the Caspian offshore continues at full capacity despite Western sanctions against LUKOIL, which holds nearly 20% in the project, said BP Regional President for Azerbaijan, Georgia and Turkey Giovanni Cristofoli at a press conference in Baku.
“Management of the company’s share and revenues (within this project) is carried out in strict compliance with sanctions, which allows operations to continue without violations. For Shah Deniz, this is not something new: for many years, companies from countries under US sanctions have operated in the project, and their participation has been managed in a similar way,” Cristofoli noted.
Interaction with the Iranian company NiCO, which also participates in the Shah Deniz project and is subject to US sanctions, is regulated in the same way.
According to him, this approach has been agreed with the State Oil Company of Azerbaijan (SOCAR), the Government of Azerbaijan, as well as with the European Union and the United States.
“Operations at the field continue fully within the framework of current international rules,” the top manager concluded.
The contract for the development of the Shah Deniz field was signed in 1996. The current shareholding structure is as follows: BP plc (operator) — 29.99%, LUKOIL — 19.99%, TPAO — 19%, Azerbaijani Cenub Qaz Dehlizi — 16.02%, Iranian NiCO — 10%, Hungarian MVM Group — 5%.
LUKOIL was included in the United Kingdom sanctions list on October 15, 2025, and a week later — in the United States sanctions list. The company is currently negotiating the sale of its foreign assets, including its stake in Shah Deniz.
