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.
