Located in the Caspian Basin, Azerbaijan is one of the oldest oil producing regions in the world. According to the Oil & Gas Journal, its proven crude oil reserves were estimated at 7 billion barrels in January 2014.
Azerbaijan also has significant natural gas reserves that will play an important role in meeting the growing global demand for natural gas. Large natural gas and condensate fields such as Shah Deniz, Absheron and Umid-Babek provide Azerbaijan with a portfolio of natural gas reserves which will flow through a pipeline system (the Southern Corridor) carrying natural gas from the Caspian Sea to Europe.
Discovered in 2010, Azerbaijan’s Umid-Babek offshore block is a high pressure gas and condensate field about 75 kilometres south of Baku. Nobel Upstream owns 20% of Umid-Babek through a joint venture with partner SOCAR (State Oil Company of Azerbaijan Republic). The Socar-UMID joint venture has spent almost five years exploring the Umid-Babek offshore block and initiated an early production scheme in 2012. Three wells have been drilled and two are in production.
Nobel Upstream has also completed an intensive review of brownfield projects in Azerbaijan where conventional technologies (3-D seismic imaging, horizontal drilling, etc.) can be used to access oil that was bypassed in the older fields.