Exploration & development of Umid-Babek field on agenda of SOCAR

Baku, Azerbaijan, July 12

By Sara Israfilbayova - Trend:

Azerbaijan’s state oil company SOCAR plans to begin gas production from the second platform at the Umid field in the fourth quarter of 2022, Trend reports with reference to sources in the oil sector July 12.

So far, there is only one platform in operation from which it is planned to drill four wells.

Exploration work on the neighboring structure “Babek” is scheduled for next year. SOCAR said that in the case of success, the first exploratory well may be converted into a production well. Drilling is possible as early as 2021 with the help of Kazakhstan’s Satti, a self-elevating floating drilling rig, which has been delivered to Baku and will drill several exploratory wells.

SOCAR announced the discovery of the Umid field in 2010. Earlier, SOCAR and Nobel Oil Exploration & Production Ltd created SOCAR-Umid LLC, to carry out drilling on the prospective structure "Umid" in the Azerbaijani sector of the Caspian Sea. SOCAR owns an 80-percent share and the Nobel Oil company has 20-percent share in the joint venture.

The volume of the field's reserve exceeds 200 billion cubic meters of gas and 40 million tons of condensate, according to the results of drilling the first exploration well and the estimations of SOCAR specialists.

The Umid field is located 75 kilometers from Baku, 40 kilometers away from the coast. The first geophysical work was carried out there in 1953, the second, improved one in 1972. Nine wells were drilled there from 1977 to 1992. However, none of them produced any results.

The reserves of Babek perspective structure may amount to 400 billion cubic meters of gas and 80 million tons of condensate, according to preliminary data.

The risk service contract (a contract with a minimum guarantee of compensation) for exploration and development of an offshore block including the Umid gas field and the promising Babek structure in the Caspian Sea was signed between SOCAR and SOCAR Umid Oil and Gas Ltd on January 12, 2017.

SOCAR-Umid LLC, which was engaged in the development of the Umid gas field, was affiliated to the SOCAR’s Azneft Production Union.

The drilling and gas extraction from the Umid field continues. In 2020, drilling of a new well will begin from the second platform of the Umid gas field. The well will be commissioned in 2021.

The fourth well is being drilled. Production from three wells (#10, #14 and #16) is underway at the field. More than 1.25 million cubic meters of gas and 200 tons of condensate are daily produced at the field. In total, SOCAR has produced almost 2 billion cubic meters of gas since the beginning of the development of the Umid field in 2011.

SOCAR has a long-term program on the development of the Umid-Babek block, thanks to which the company will be able to receive up to five billion cubic meters of gas annually from the Umid field alone.

In May last year, Financial Director of Nobel Upstream Huseyn Gasimov said that the annual gas production at the Umid-Babek block at the first stage of its full-scale development may reach 3-4 billion cubic meters of gas per year. These volumes are planned to be supplied to a growing domestic market. At the next stage, another 3-4 billion cubic meters of additional gas will be added to the production, which are planned to be sold in the regional market, and at subsequent stages in the European market through the Southern Gas Corridor.

In 2018, SOCAR received 663 million manats from the state budget to increase the authorized capital in connection with drilling at the Umid-Babek and Karabakh fields.

The Babek field has yet to be drilled. SOCAR is preparing for exploration work on the structure, which is scheduled to begin in 2020.

SOCAR is preparing a project to drill the first exploratory well on Babek structure. If the results of the exploratory well’s drilling are positive, SOCAR will build a platform there at the first stage and drill 4-5 wells for production. Gas production itself at the Babek field may start in 2024-2025.

Regardless of the structure of the contract on development of the Umid-Babek block, the main task of SOCAR is to ensure the optimal development of the already explored deposit and to ensure exploratory drilling on promising structures.

---

Follow the author on Twitter: @IsrafilbekovaS

Subscribe to Trend in Google News! Subscribe
Nar supports publication of book on veteran teachers
Nar supports publication of book on veteran teachers
Azerbaijan talks provision of Internet to inaccessible areas
Azerbaijan talks provision of Internet to inaccessible areas
Azerbaijan’s State Tax Service expanding use of electronic signature
Azerbaijan’s State Tax Service expanding use of electronic signature
Loading Bars
Latest
Chronicles of Victory: October 29, 2020
Kazakhstan assumes chairmanship of Advisory Council for Labour, Migration and Social Protection
French, Australian leaders have first talk since US sub fallout
Facebook’s new name will be Meta
Southern Gas Corridor is only alternative to Russian gas - The Economist
Georgian NCDC Head urges for vaccination to end pandemic
UK to remove final seven countries from COVID-19 travel 'red list'
Azerbaijani PM meets with Chairman of Turkish Banks Association
Iran announces increase in import of products
USAID and Startup Georgia support launching of coal enterprise
Russia calls for adherence to statements contributing to unblocking of all transport links in S.Caucasus - MFA
Uzbekistan plans to hold meeting on accession to WTO
Azerbaijani Naval Forces hold competition for title of "Best Ships Division" (VIDEO)
Independent Franco-German financial services group considering projects in Uzbekistan
Russia’s Tatneft to repair hundreds of oil wells in Turkmenistan
Turkmenistan discovers new gas fields on Caspian Sea coast
SOCAR increases number of gas filling stations in Romania (PHOTO)
U.S. economy slows sharply in third quarter
Grain clusters, farmers look to sell wheat at market prices in Uzbekistan
Russia is open for cooperation on energy security, climate change — Putin
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,420 more COVID-19 cases, 1,358 recoveries
Uzbekistan, Tajikistan approve agreement on transit of dangerous goods
Iran to build power transmission line in Turkmenistan’s Mary
India seeks vaccine loans from ADB, AIIB
Uzbekistan considering to sign new agreement with Gazprom
Let COP26 be COP of actions, not just promises and pledges: India at UN
Azerbaijan's Kapital Bank ready to co-op with startups
Uzbekistan shares electric car import stats for 9M2021
NATO Special Rep appreciates Azerbaijan’s support to NATO in Afghanistan
Uzbekistan discloses volume of grape export to Azerbaijan for 9M2021
Kazakhstan, Huawei sign MoU on extending ICT co-op
Georgia reveals volume of its foreign debt to Azerbaijan
Uzbekistan, Russia eye increase of supply of agricultural products by 2030
Indo-Pacific is a "Fact Of Life": S Jaishankar
Oman approves Covaxin shots for travel without quarantine
SOCAR Turkey’s sales down year-on-year
Kazakhstan, Russia resume negotiations on Khvalynsk, Imashev fields
Kazakhstan’s national postal operator to buy spares via tender
Turkmen officials to discuss TAPI project in Kabul
SOCAR Turkey sees increase in assets
Kazakhstan completes repair of Pavlodar oil chemistry refinery ahead of schedule
Azerbaijan allows administration of fourth dose of COVID-19 vaccine
Pasha Bank is ready to support new projects on developing Azerbaijan's startup ecosystem - board member
Kazakhstan increases petroleum oil exports to France
Turkmenistan, Iran expand bilateral relations
Uzbekistan to subsidize difference in average gas price
Merck raises full-year profit target after cancer drug sales help Q3 beat
Nar supports publication of book on veteran teachers
Renesas buys Israeli Wi-Fi chipmaker Celeno for $315m
Turkey receives positive signals from Armenia – Turkish defense minister
Indian forex reserves surge by $58.38 bn in H1
Qatar targets 25% cut in greenhouse gas emissions by 2030 under climate plan
Kazakhstan's economy to grow faster than in other EAEU states - EDB expectations
Georgia to keeps tight monetary policy – NBG
India, Sri Lanka and Maldives hold joint exercise on maritime security
Kazakhstan boosts manufacturing volume of gold
Indian Govt looks to revive tourism sector as jab drive gathers steam
Canadian company to invest in exploration of gold deposits in Uzbekistan
Turkish company talks plans for crop, livestock production in Azerbaijan's Karabakh
21 subject olympiad winners enter Baku Higher Oil School
IRENEX shares data on sales of Iran’s NIOPDC at energy exchange
Bahar Azadi gold coin price again falling in Iran
Azerbaijan’s 9M2021 imports of Turkish chemical products increase
Kazakhstan to build capacious renewable energy facilities
PM Modi reaffirms India’s focus on free & open Indo-Pacific
Iran reveals COVID-19 data for October 28
Chief Financial Officer of Azerbaijan's Bravo supermarket chain talks profit prospects
Pension savings in Kazakhstan increase
Iran's Bistoon TPP boosts electricity generation
Romania plays very important role in Azerbaijan-NATO cooperation plan - Azerbaijani president
Konkan Shakti 2021: India, UK take part in maiden bilateral tri-service exercise
Georgian public foreign debt on the rise
During second Karabakh war, we felt support of people of Kyrgyzstan - President Ilham Aliyev
Turkey occupies very important place in international arena today - Azerbaijani President
EBRD talks details of putting out former uranium mining sites in Uzbekistan
Indian-origin Anita Anand is Canada's new Defence Minister as PM Trudeau reshuffles Cabinet
Kazakhstan reports decrease in volume of money transfers
Azerbaijan's Barda city commemorates victims of Armenian aggression during second Karabakh war (PHOTO)
Russia’s Gazprombank projects Azerbaijan’s refinancing rate level
Iran’s Shahid Tondgooyan Petrochemical Company reaches increase in production
Armenia ready to begin delimitation and demarcation of borders with Azerbaijan
Azerbaijani President congratulates Turkish counterpart
Saipem announces time of returning EBITDA to pre-COVID level
Iran shares amount of needed money for construction of roads, bridges in Khuzestan Province
Iran reveals volume of trade turnover via border terminals in Sistan & Baluchestan Province
Saipem reveals revenue forecasts for 2H 2021
Turkey acting jointly with Azerbaijan regarding normalization of relations with Armenia - FM
Saipem sees significant increase in revenues
Turkey reveals number of ships docking at Tekirdag port in 9M2021
Armenia lagged behind Azerbaijan in armaments issue – Armenian president
Azerbaijan talks ongoing work to restore houses damaged from Armenian shelling during Second Karabakh War - Trend TV (PHOTO)
Ryanair vows 5-day refund turnaround after COVID criticism
Hungary talks on measures to diversify gas supply routes
Hungary’s gas reservoirs 86% full, well above EU average
Investment projects in Turkmen oil and gas fields in Caspian Sea discussed at int'l conference
BSTDB ready to support Azerbaijan to meet emission commitments under Paris agreement (Exclusive)
Bank Keshavarzi Iran sees increase in loans issued for purchase of agricultural machinery
SOCAR’s STAR Refinery boosts crude imports
Turkmenistan Airlines simplifies clearance of int’l cargo transportation
All news