BAKU, August 1, 2025 – Report.az
Azerbaijan is preparing to launch a new phase in the development of its offshore gas reserves, as Umid Babek Operation Company (UBOC) is set to begin drilling an appraisal well at the Umid field this September, according to sources in the oil and gas sector.
The operation will utilize the self-elevating floating drilling rig Neptune, which arrived in Azerbaijan in June 2025. The planned depth of the well is approximately 7,000 meters.
The move marks a key step in the broader development of the Umid-Babek block, located in the Azerbaijani sector of the Caspian Sea. According to an earlier report by Fitch Ratings, Phase II of Umid’s development is expected to enter production by 2027.
As of April 1, cumulative output from the field’s first phase had reached 11.2 billion cubic meters of natural gas and 1.65 million tons of gas condensate.
Azerbaijan’s state oil company SOCAR estimates Umid’s reserves—spread across formations such as Balakhany VIII, Fasila (B, C, D, E), Nadkirmakin, and Podkirmakin—at 129 billion cubic meters of gas and 20 million tons of condensate.
Discovered on November 24, 2010, Umid was the first gas-condensate field found in Azerbaijan since independence and was brought online in 2012. The Risk Service Contract (RSC) for exploration and development of the Umid-Babek block was signed on January 12, 2017, and came into force in May of that year.
Under the RSC, the project is operated by UBOC, a joint venture between SOCAR (80% interest) and UK-based Nobel Upstream (20%).
The September drilling campaign is expected to provide key data for the planning of full-field development, as Azerbaijan continues to expand its energy footprint in the Caspian basin.
