Azerbaijan is one of the oldest oil producing regions in the world. Its proven reserves are estimated at 7 billion barrels of crude oil and 88.4 trillion cubic feet of natural gas.
Azerbaijan's significant natural gas reserves will play an important role in meeting growing global demand. Growing volumes of production from a giant offshore Shah Deniz field are already flowing through a natural gas pipeline system (the Southern Gas Corridor) connecting the Caspian Sea to Europe paving the way for exports from other giant fields such as Absheron and Umid-Babek.
Nobel Upstream and its partner SOCAR formed the SOCAR-UMID Joint Venture ("JV") in 2008. The JV discovered the Umid area of the giant Umid-Babek gas and condensate field in 2010 and initiated a pilot production scheme in 2012.
The JV also carried out 3D seismic surveys over the Babek area of the Umid-Babek field. In 2017 Nobel Upstream and SOCAR transitioned from the SOCAR-UMID JV to the Umid Babek Exploration and Production (“UBEP”) company. Nobel Upstream holds a 20% interest in UBEP, which is the sole contractor under the Umid-Babek Risk Service Agreement (“RSA”). The RSA was ratified by the parliament (“Milli Majlis”) and signed into law by the President of the Republic of Azerbaijan in May 2017. Five wells are in production. 2P reserves are estimated at 3.5 Tcf gas and 99.6 MM barrels condensate. 3P reserves are estimated at 21.2 Tcf gas and 607.6 MM barrels condensate.
Nobel Upstream has also completed an extensive 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.