The United States has renewed a sanctions waiver allowing energy major BP to continue operations at the Shah Deniz natural gas field in Azerbaijan, despite the project involving Russian and Iranian stakeholders, the company said on Thursday.
BP confirmed the extension in an emailed statement, saying the project remains fully compliant with international sanctions and regulatory requirements. The company did not disclose the duration of the renewed license.
The Shah Deniz field, located in the Caspian Sea off Azerbaijan, is one of the world’s largest gas-condensate fields and a key source of natural gas exports to Europe through the Southern Gas Corridor.
The project includes partners from several countries, among them Russia’s Lukoil and Iran’s National Iranian Oil Company, making U.S. sanctions exemptions critical for continued international cooperation.
Washington has imposed broad sanctions on both Moscow and Tehran, particularly following Russia’s actions in Ukraine and longstanding disputes over Iran’s nuclear programme.
The renewed authorization underscores the strategic importance of Azerbaijani gas supplies to European energy security, especially as Europe seeks alternatives to Russian pipeline gas.
BP said it consistently works to ensure compliance with all applicable sanctions, laws and regulations in jurisdictions where it operates.
The Shah Deniz consortium has been central to Azerbaijan’s rise as a major regional gas exporter, supplying fuel to markets including Turkey, Italy and other parts of southeastern Europe.
Analysts say uninterrupted operations at the field are vital for maintaining stable gas flows to Europe amid ongoing geopolitical tensions and tight global energy markets.
The U.S. decision signals continued support for energy projects viewed as strategically important, even where sanctioned entities hold minority interests.