Baku Shipyard

Baku Shipyard is a large shipbuilding and offshore fabrication facility in Azerbaijan. The enterprise was created as a joint venture involving the State Oil Company of Azerbaijan Republic (SOCAR), Azerbaijan Investment Company (AIC), and Singapore-based Keppel Offshore & Marine. Construction began in March 2010, following the founders’ agreement signed on 10 December 2010, and the facility was completed in the third quarter of 2013. The project was intended to expand Azerbaijan’s industrial and maritime capacity while supporting the country’s offshore oil and gas sector and the wider transport economy of the Caspian Sea. The shipyard occupies approximately 620,000 square metres and has been described as the largest shipyard facility among the countries bordering the Caspian Sea. Its reported production capacity is approximately 25,000 tonnes of metal structures per year. The site includes production workshops, repair facilities, warehouses, offices, a five-storey administrative building, a training centre, medical and dining facilities, a compressor building, semi-station buildings for electrical supply, and a bridge approximately 1,630 metres long. The project was designed by the British engineering consultancy Royal Haskoning, while equipment was sourced from suppliers in Finland, the Netherlands, Germany, the Czech Republic, the United Kingdom, South Korea, and Singapore. Baku Shipyard’s activities extend beyond the construction of complete vessels. The facility performs metalworking, welding, plating, assembly, offshore-structure fabrication, and ship repair. The available reference material states that the yard can repair approximately 80 to 100 vessels per year. Its early industrial work included fabrication for a subsea or offshore construction device ordered by Caspian Drilling Company. This reflects the yard’s role as part of Azerbaijan’s broader offshore-services ecosystem rather than as a producer of consumer-facing boats alone. The yard’s most prominent reported vessel is the Khankendi, an offshore subsea construction vessel completed in 2017. The vessel was built for work associated with the Shah Deniz-2 development and was inaugurated in September 2017. It was designed for subsea installation and related offshore construction work, with dynamic positioning, a major crane capable of underwater operations to depths of up to 600 metres, diving capsules, remotely operated systems, and reinforced equipment spaces. The vessel is reported as being 155 metres long, 32 metres wide, and 13 metres high, with a maximum speed of 13.5 knots and a displacement or total capacity figure of approximately 17,600 tonnes. Its construction was undertaken under the supervision of DNV GL, with classification involvement from Norway and Germany. The business is strategically linked to Azerbaijan’s offshore energy economy. Its facilities support the construction and maintenance of vessels and offshore equipment needed for oil and gas activity, while its repair capability serves the commercial and industrial fleet operating in the Caspian. The reference material also describes plans or capability for larger tanker construction in a later development stage, with projected tanker capacity of approximately 60,000 to 70,000 tonnes per year. The reported construction cost of the shipyard was approximately 470 million US dollars, although this figure is not accompanied here by a current financial filing or independently verified financial source. No reliable information in the supplied material identifies current revenue, profitability, workforce changes, or present ownership percentages beyond the original joint-venture structure.

Baku Shipyard was established as part of Azerbaijan’s effort to strengthen domestic industrial infrastructure and support the maritime requirements of its offshore energy sector. The project brought together SOCAR, Azerbaijan Investment Company, and Keppel Offshore & Marine. Under the founders’ agreement signed on 10 December 2010, the original charter-capital interests were reported as 65 percent for SOCAR, 25 percent for AIC, and 10 percent for Keppel Offshore & Marine. Construction itself began in March 2010 and was completed in the third quarter of 2013. The facility was developed on a large site of roughly 620,000 square metres near Baku. Its infrastructure includes production and repair workshops, warehouses, offices, training facilities, administrative buildings, utility structures, medical and dining facilities, and a bridge approximately 1,630 metres long. Royal Haskoning of the United Kingdom designed the plant. The shipyard’s equipment came from a range of European and Asian industrial suppliers, including companies and manufacturers based in Finland, the Netherlands, Germany, the Czech Republic, the United Kingdom, South Korea, and Singapore. The yard was designed to provide Azerbaijan with capabilities spanning shipbuilding, offshore fabrication, and ship repair. Its production process uses metalworking, welding, plating, and digital or three-dimensional production and conveying technologies. The reference material identifies an early order from Caspian Drilling Company for an offshore or subsea device, including fabrication of deck sections. The yard was also described as capable of repairing between 80 and 100 ships annually, giving it a role in maintaining the regional fleet as well as constructing new vessels. The facility’s expansion was linked to expected growth in Caspian cargo transportation and offshore energy activity. Initial production plans included vessels such as tankers with capacity of approximately 15,000 tonnes, as well as service or towing vessels. A later stage was described as enabling the construction of larger tankers with capacity in the range of 60,000 to 70,000 tonnes per year. The supplied reference states that the overall construction project cost approximately 470 million US dollars, but no current financial documentation is provided for that figure. Baku Shipyard’s most significant reported construction project is the Khankendi, a subsea construction vessel completed in 2017 and inaugurated in September of that year. The ship was intended to support the Shah Deniz-2 project during the reported 2017–2027 operating period. It was designed for underwater installation and equipped with dynamic positioning, a large crane rated for subsea work to depths of up to 600 metres, diving capsules for 18 people, remotely operated systems, and specialist reinforced equipment spaces. The vessel is reported to be 155 metres long, 32 metres wide, and 13 metres high, with a maximum speed of 13.5 knots and a carrying capacity exceeding 5,000 metric tonnes. Its construction was conducted under DNV GL supervision, with classification involvement from Norway and Germany. Through these projects, Baku Shipyard became a significant Azerbaijani industrial asset and a specialist supplier to the Caspian maritime and offshore sectors. Its public profile is primarily industrial and project-based rather than consumer-facing. The available material does not establish detailed information about current management, subsequent ownership changes, financial performance, or the full list of vessels and customers completed after the Khankendi project.

1. 2017Khankendi vessel completed

   The shipyard completed the Khankendi subsea construction vessel, which was inaugurated in September 2017 for offshore work associated with Shah Deniz-2.

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2. 2013Facility completed

   Construction of the shipyard was completed in the third quarter of 2013, enabling the plant to enter operational shipbuilding and repair activity.

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3. 2010Shipyard construction begins

   Construction of the Baku Shipyard facility began in March 2010 as a joint industrial project involving SOCAR, AIC, and Keppel Offshore & Marine.

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4. 2010Founders’ agreement signed

   The joint-venture contract among the founding parties was signed on 10 December 2010. The original reported ownership structure assigned 65 percent to SOCAR, 25 percent to AIC, and 10 percent to Keppel Offshore & Marine.

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Azerbaijan-based industrial shipyard focused on vessel construction, offshore fabrication, subsea-support assets, and repair services for the Caspian Sea and energy sectors.

• KhankendiOffshore subsea construction vessel2017

  Khankendi is an offshore subsea construction vessel completed by Baku Shipyard in 2017 for work connected with the Shah Deniz-2 development. The vessel was designed for underwater installation and includes dynamic positioning, a large subsea crane rated for operations to depths of up to 600 metres, diving capsules, remotely operated systems, and specialist equipment spaces. It is reported to measure 155 metres in length, 32 metres in width, and 13 metres in height, with a maximum speed of 13.5 knots and a carrying capacity exceeding 5,000 metric tonnes.

• Tankers and cargo vesselsCommercial vessels

  The shipyard’s planned and reported production scope includes tankers and other cargo-related vessels for Caspian Sea transportation. Initial production capability was described in relation to vessels of approximately 15,000-tonne capacity, while a later development stage was associated with larger tanker construction in the range of 60,000 to 70,000 tonnes per year.

• Offshore structures and marine equipmentOffshore fabrication

  Baku Shipyard performs metalworking, welding, plating, and assembly for offshore and marine structures. Its reported early work included fabrication of deck components for an offshore or subsea device ordered by Caspian Drilling Company. This capability supports Azerbaijan’s offshore oil and gas infrastructure and related marine-construction projects.

• Ship repair servicesMarine maintenance2013

  In addition to new construction, the shipyard provides repair and maintenance services for vessels operating in the Caspian Sea and associated industrial fleets. The available reference material states that the facility has the capacity to repair approximately 80 to 100 ships per year.

• 2017Deliver the Khankendi subsea construction vesselProduct launch

  The Shah Deniz-2 offshore development required specialist marine assets for subsea installation and construction activity.

  What changed. Baku Shipyard completed and inaugurated the Khankendi offshore subsea construction vessel.

  Aftermath. The vessel entered work associated with Shah Deniz-2 and demonstrated the yard’s ability to deliver complex offshore construction assets.

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• 2010Create a national-scale Caspian shipbuilding and repair facilityStrategy

  Azerbaijan sought to expand local industrial capacity for offshore energy, cargo transportation, vessel construction, and maritime maintenance.

  What changed. SOCAR, Azerbaijan Investment Company, and Keppel Offshore & Marine formed a joint venture to construct and operate Baku Shipyard.

  Aftermath. The facility was completed in 2013 and developed capabilities in shipbuilding, offshore fabrication, and ship repair.

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• 2017Baku Shipyard builds the Khankendi offshore vessel

  Baku Shipyard completed the Khankendi subsea construction vessel for work connected with the Shah Deniz-2 offshore development.

  Product launchProduct generation
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• 2013Baku Shipyard construction completed

  The construction of the Baku Shipyard facility was reported as completed in the third quarter of 2013, enabling the yard to begin shipbuilding and repair operations.

  Product launch
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• 2010Construction of Baku Shipyard begins

  Construction of the Azerbaijani shipyard project began in March 2010 as a joint effort involving SOCAR, Azerbaijan Investment Company, and Keppel Offshore & Marine.

  Other
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1. Baku Shipyard
2. Baku Shipyard official website