Azerbaijani SOCAR boosts its operations within the Caspian Sea region and beyond

Azerbaijan’s state-owned national oil and gas company SOCAR has successfully completed the drilling of an exploration well in the Caspian Sea and signed a new $500-million contract with BP Exploration, the company stated in a press release on May 13.

According to SOCAR-AQS, a subsidiary of SOCAR, the company has upgraded its drilling technology and techniques which allow it to function more efficiently and effectively around the globe, including Ukraine. The company owns four oil bases across Ukraine – in Kyiv, Odesa, Lviv and Kharkiv.

The drilled exploration well called “Number 16” is located 6,810 meters deep from an offshore fixed platform in SOCAR-AQS’s “Umid” natural gas field – reportedly the second largest natural gas field in Azerbaijan.

According to Sevinj Gasimova, head of SOCAR-AQS’s geology department, the exploration well will play an important role in the company’s future operations.

“It is safe to say that the successful commission of well ‘Number 16’ and customer satisfaction have ushered (in) a new era of the ‘Umid’ field exploration,” Gasimova said. “There will be a clear boost” of oil and gas development within the region.

SOCAR-AQS has oil and gas well drilling operations with six rigs on five platforms in four offshore oil and gas fields in the Caspian Sea – Shallow Water Gunashli, West Absheron, Umid and Bulla. The company employs more than 1,000 people, mostly in Azerbaijan.

Its parent company, SOCAR, also owns gas filling station networks in Georgia, Ukraine, Turkey, Romania and Switzerland. SOCAR operates on the territory of Ukraine through its subisdiary SOCAR Energy Ukraine, which was established in 2009. Currently, SOCAR has invested $300 million into its operations in Ukraine.

SOCAR Energy Ukraine also has two floating fuel stations for small and medium vessels in Ukraine: one is located at the Muromets Park in Kyiv, while the other is at the Sovinjon Yacht Club in Odesa.

$500-million deal

Turan Drilling & Engineering, a company co-owned by SOCAR-AQS and KCA, recently signed its first contract with BP Exploration (Caspian Sea), a subsidiary of British oil and gas multinational BP. The contract is valued at approximately $500 million and will cover the operations and maintenance of seven platform drilling rigs operated by BP in the Caspian Sea over five years, with the possibility of extending the contract for another one to two years.

Read: Ukraine moves to open up and strengthen its natural gas sector