BAKU, Azerbaijan, July 4. The State Oil Company of Azerbaijan Republic (SOCAR) negotiates with the companies participating in the Azeri-Chirag-Gunashli (ACG) project about their possible participation in the development of the neighboring Karabakh field in the Caspian Sea, an informed source told Trend.
"The geological similarity between ACG and Karabakh, their close proximity, and existing infrastructure at ACG could expedite oil production at the Karabakh field, discovered in 2020. This matter is currently under discussion between SOCAR and the ACG consortium," stated the source.
The Karabakh field was discovered in March 2020 through a collaboration between SOCAR and the Norwegian Equinor company, which was the operator at the time.
Exploration activities at the Karabakh field have included drilling three exploration wells and one appraisal well.
Following Equinor's withdrawal from the project in December 2023 (announcing a shift away from Azerbaijan's production projects to focus on green energy initiatives), the Karabakh field is now under SOCAR's management.
Preliminary geological estimates suggest the Karabakh field in the Caspian Sea holds over 40 million tons of oil, with more than 21 million tons deemed recoverable.
"Successful negotiations could lead to oil production commencing at the Karabakh field within the next two to three years, potentially utilizing a new fixed platform. Details are currently under discussion. Once operational, the field is projected to yield around 5,000 tons of oil and 4.5 million cubic meters of gas daily," noted the source.