SOCAR Shifts Strategy: ‘Short-Term Output Is Out, Long-Term Value Is In’

Must read

Azerbaijan’s state energy company SOCAR is moving all of its fields to a fully digital management model, marking one of the most comprehensive modernization drives in the Caspian energy sector.

Speaking at the SPE Caspian Technical Conference 2025 in Baku, Murad Seidov, SOCAR’s reservoir development manager, said each field will now be operated through structural modeling, static and dynamic simulations, and data-driven development plans.

.

Stay Ahead with Azerbaijan.us
Get exclusive translations, top stories, and analysis — straight to your inbox.

“Every decision will rely strictly on real datasets. Once we ensure reliability of the fundamentals, we will move to more advanced stages, including artificial intelligence,” he said.

Seidov noted that despite decades of field operations under extremely limited data, SOCAR still delivered strong technical outcomes in mature and complex reservoirs. The current shift, he added, is the transition “from low-data operations to high-data operations”, although budget and operational limits remain a challenge.

SOCAR is now strengthening its labs, seismic processing units, and core-analysis centers to build a unified digital ecosystem capable of supporting long-term field resilience.

“Our aim is to integrate all field management into a single digital environment. This will increase decision precision and operational sustainability.”

SOCAR Redefines Mature Field Strategy: ‘Value Over Volume’

SOCAR is introducing a new management model for mature fields that prioritizes long-term value creation rather than short-term production spikes.

Speaking at the same conference, Seidov said the new framework reduces financial risk and prevents the common global mistakes operators make when dealing with aging assets.

“Two errors dominate the industry: poor financial decisions and an obsession with immediate production boosts. SOCAR’s strategy is built to avoid both.”

He emphasized that mature fields must be treated as new projects with new constraints, not old assets to squeeze for quick output.

More than 70% of global oil output comes from mature fields-something that fully defines SOCAR’s operating reality.

Today, SOCAR manages around 10,000 wells across more than 30 fields, most of which are over a century old.

“For us, redevelopment is not optional. It is a daily operational reality.”

SOCAR to Launch Largest Seismic Program in Its History in 2026

SOCAR plans to begin its most extensive seismic survey program ever next year, aimed at refining subsurface mapping across Azerbaijan’s mature offshore fields.

Seidov said the program will target areas where precision exploration can generate the highest long-term returns.

“In 2026 we will carry out the largest seismic campaign in SOCAR’s history. Its primary goal is accurate identification of underground resources.”

SOCAR is simultaneously working with Baker Hughes, Halliburton and SLB on data acquisition, modeling, and advanced diagnostics.

“Technology collaboration is the key to reducing uncertainty. Only after defining the right targets can full-scale redevelopment begin.”

- Advertisement -spot_img

More articles

- Advertisement -spot_img

Latest article