BAKU, Azerbaijan, September 9. The UK
government has issued a General Trade Licence allowing the
continued operation of Azerbaijan’s Shah Deniz gas field under the
country’s sanctions regime against Iran.


The decision was published in the document titled “General Trade
Licence: Services Necessary for the Continued Operation of the Shah
Deniz Gas Field.”


According to the document, the new UK sanctions measures against
Iran include specific exemptions designed to ensure the continued
implementation and operation of the Shah Deniz project, which
provides critical energy supplies to the UK’s European
partners.


“This is a continuation of long-standing policy and aligns the
UK with the EU and US, who have similar carveouts for activities
related to Shah Deniz,” the document stated.


The licence applies to activities related to the essential
operations of the Shah Deniz Upstream Unincorporated Joint Venture,
the South Caucasus Pipeline, Azerbaijan Gas Supply Company, as well
as related pipeline projects and joint ventures established to
transport Azerbaijani gas to Türkiye and Europe. The authorisation
covers the supply of energy-related goods and technologies,
provision of technical assistance, and financial or brokering
services related to the energy sector, provided such activities are
necessary for the operation of the specified projects.







The UK government issued the licence under Regulation 41 of the
Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 as part of
amendments introduced through the Iran (Sanctions) (Amendment)
Regulations 2026.


The document specifies that the exemptions apply only to
activities connected with essential operations of the Shah Deniz
project, including the Shah Deniz gas field, the South Caucasus
Pipeline, Azerbaijan Gas Supply Company, and related infrastructure
established for transporting gas from Azerbaijan to Türkiye and
Europe.


According to bp data, the current production capacity of Shah
Deniz’s operating facilities stands at approximately 76.8 million
standard cubic metres of gas per day, or around 28 billion cubic
metres annually.


The shareholders of the Shah Deniz project are: bp (operator) –
29.99 percent, LUKOIL – 19.99 percent, TPAO – 19 percent, Southern
Gas Corridor CJSC – 16.02 percent, NICO – 10 percent, and MVM – 5
percent.