The offshore natural gas project at Umid-Babek in Azerbaijan is expected to produce gas in volumes of between three and four million cubic metres (105-140 bcf) annually in the initial stage of development, a spokesperson for Nobel Upstream announced in May this year. Reporters who were told this on the 31st of May by Huseyn Gasimov were also informed that discussions with possible partners, together with SOCAR, were underway regarding the block’s future development.
Gas Usage
The initial
output of Umid-Babek has been allocated for domestic use, meeting the rising
needs of the internal market. In stage two of development, when the production
of natural gas is expected to double, the additional volume will then be sold
region-wide. Subsequent stages of increased production could result in production
being sold further afield, using the Southern Gas Corridor to enter the European
market.
Umid-Babek
The Umid-Babek
gas condensate field is owned by the SOCAR and Nobel Upstream companies, with
an 80%/20% ownership respectively. SOCAR estimates that 300bcm of gas reserves
are likely to be produced with drilling in Umid, along with 600bcm from the
Babek structure underneath. Umid is Azerbaijan’s second-largest natural gas
field and is located 75km from Baku, the capital. The exploration works at Umid
were financed by SOCAR and Nobel Upstream and began in 2008.
2017 Contract for
Risk Service
SOCAR signed
a contract for risk service on the 12th of January 2017, along with
SOCAR Umid Oil and Gas Ltd and Umid Babek Exploration and Production company,
owned by SOCAR and Nobel Upstream. The contract ratified by the parliament of
the Republic of Azerbaijan sets out the terms for the offshore block’s
development, exploration and production. The block consists of the Babek
structure in the Caspian Sea as well as the Umid gas field.
