Azerbaijan prepares for next phase of gas expansion at Umid-Babek block

The Umid Babek Operation Company (UBOC) is preparing to launch a new drilling campaign in the Azerbaijani sector of the Caspian Sea, with appraisal drilling at the Umid field scheduled to begin in September 2025.

According to a source in the oil and gas industry, quoted by the domestic media, UBOC will utilise the Neptune jack-up drilling rig for the operation, Caliber.Az reports.

The rig, which arrived in Azerbaijan in June 2025, will be employed to drill an appraisal well to a planned depth of approximately 7,000 meters.

"Drilling of the appraisal well with the Neptune jack-up drilling rig is planned to start in September 2025. The planned depth of the well is about 7,000 meters," the source told journalists.

This campaign is part of ongoing preparations for the second phase of development at the Umid field. According to a previous report by Fitch Ratings, production from this second phase is expected to commence by 2027.

Since the start of the field’s development, Umid has already yielded significant output. As of April 1, 2025, cumulative production from the first phase reached 11.2 billion cubic meters of natural gas and 1.65 million tons of gas condensate.

The Umid field, discovered on November 24, 2010, holds historical importance as Azerbaijan’s first gas condensate field discovered after the country gained independence. It was brought into operation in 2012.

Preliminary assessments by the State Oil Company of Azerbaijan (SOCAR) estimate the field’s reserves at 129 billion cubic meters of gas and 20 million tons of condensate. These reserves are located across several formations, including Balaxani VIII, Fasila (B, C, D), Fasila E, Nadkirma, and Podkirma.

The exploration and development of the broader Umid-Babek block are governed by a Risk Service Contract (RSC) signed on January 12, 2017, which entered into force in May of that year. Under the terms of the RSC, UBOC is operated jointly by SOCAR, which holds an 80% stake, and UK-based Nobel Upstream, which owns the remaining 20%.

By Tamilla Hasanova