BAKU, Azerbaijan, November 6. Having supported Azerbaijan's energy sector for decades, Baker Hughes sees significant opportunities ahead, both in Azerbaijan and across the wider Caspian region, Baker Hughes Vice President of Europe and CIS Elena Akoltseva said in an exclusive interview with Trend.
“The region remains strategically important due to its resource base, established infrastructure, and growing role in supporting global energy security.
As one of the world’s oldest oil-producing regions, we see many opportunities to help operators in Azerbaijan and the Caspian region maximize value from their existing assets. As fields age, more technology-driven solutions are needed to improve efficiency, reliability, and recovery while reducing emissions and operating costs. Baker Hughes has a wide range of advanced well construction, production optimization and digital technologies to address the challenges our customers’ face in mature oil and gas fields,” she said.
The regional VP noted that the company also sees growing interest in electrification, methane reduction, asset performance management, and digital technologies that help operators achieve both operational and sustainability objectives.
”A good example is our ongoing collaboration with SOCAR, announced during COP29, to help reduce flaring and abate downstream emissions at the Heydar Aliyev Baku Oil Refinery. Projects like this demonstrate how technology can deliver both operational and sustainability outcomes,” she said.
Akoltseva pointed out that in the competitive landscape, localization remains a key priority in Azerbaijan.
“Baker Hughes employs more than 300 people in the country, approximately 95% of whom are Azerbaijani nationals. We believe our long-standing local presence, investment in talent, and partnerships position us well to further expand local capabilities in services, manufacturing, and field operations.
Looking across the Caspian region, we see continued investment in energy infrastructure and industrial development. Our focus is on supporting customers with technologies that enhance energy security, improve competitiveness, and reduce emissions through technology, local expertise and long-term partnerships,” she added.
Extending ACG’s productive life
Akoltseva noted that as large producing assets mature, technology becomes increasingly important in maintaining production performance and maximizing ultimate recovery.
“Long-producing fields such as ACG are becoming more complex and require advanced technological approaches. Azerbaijan’s offshore giants, including ACG, demand new technologies as operators focus on maximizing recovery and extending field life.
In the subsea domain, modern monitoring and intervention technologies can provide operators with improved visibility into well and reservoir performance, helping identify opportunities to manage pressure, optimize flow, and increase production efficiency. Recent vessel-based intervention campaigns in the ACG area demonstrate the industry’s focus on extracting greater value from existing infrastructure,” she said.
The regional VP noted that Baker Hughes also sees significant
opportunities in integrated reservoir management, predictive
analytics, condition monitoring, and data-driven well intervention
planning.
“The combination of physical technologies and digital intelligence can help operators extend field life, improve recovery factors, and enhance overall asset economics,” she added.
Akoltseva pointed out that Azerbaijan remains one of Baker Hughes’ strategic markets in the Caspian region, and its portfolio today spans subsea and well construction technologies, production and intervention services, industrial and energy technology equipment, digital applications, and lifecycle services supporting both offshore and onshore operations.
“Baker Hughes has maintained a long-standing presence in the country and continues to support operators and national energy stakeholders across the value chain,” she said.
Expanding business beyond ACG and Shah Deniz
Akoltseva noted that Shah Deniz remains one of the most important gas developments in the region and continues to play a critical role in supplying natural gas to Azerbaijan, Türkiye, and European markets.
“The field is a highly sophisticated offshore development with extensive subsea infrastructure and ongoing drilling and production activities.
Baker Hughes continues to work closely with operators across Azerbaijan’s energy sector to identify opportunities where our technologies can create value. Our focus areas include mature asset solutions, production enhancement, digitalization, and other technologies that improve efficiency and reliability,” she explained.
The regional VP believes there is significant potential to apply
these solutions not only to established producing assets such as
ACG and Shah Deniz, but also to other offshore and onshore
developments as operators seek to maximize recovery, improve
operational performance, and support the long-term sustainability
of Azerbaijan’s energy sector.
“Baker Hughes remains committed to collaborating with SOCAR, bp, and other industry stakeholders to bring innovative technologies and local capability development to the market,” she added.
Medium- and long-term business potential in wider Caspian region
Akoltseva noted that looking beyond Azerbaijan – Baker Hughes operates in Central Asia in Kazakhstan, Turkmenistan and Uzbekistan.
“We see the Caspian region as an important growth market, underpinned by a strong resource base, continued investment in energy infrastructure, and the strategic role the region plays in supporting energy security and economic development.
In the medium to long term, we see significant opportunities across conventional oil and gas and natural gas development as operators focus on maximizing recovery from existing assets while improving efficiency, reliability, and emissions performance. As global energy demand continues to grow, these resources will remain essential to providing secure, affordable energy,” she said.
The regional VP pointed out that for Baker Hughes, the opportunity is not defined by any one segment.
“It lies at the intersection of energy growth, operational performance, and emissions reduction. Our focus is on helping customers across the Caspian unlock greater value from their assets, strengthen competitiveness, and meet evolving energy and sustainability objectives through technology, innovation, and long-term partnership, she said.
Akolsteva believes that the next wave of demand across Continental Europe and the Caspian will be driven by growing energy needs, infrastructure modernization, and the need to improve efficiency while reducing emissions.
“As energy systems become more complex, operators are increasingly looking for solutions that enhance performance, strengthen energy security, and improve the economics of existing and new projects.
Over the next five to ten years, technologies such as electrification, advanced turbomachinery, digitalization, AI-enabled asset management, and next-generation well construction solutions have the potential to be transformative. These technologies can help operators increase reliability, reduce downtime, optimize energy consumption, lower emissions, and extend asset life, all of which have a direct impact on project economics,” she added.
Akoltseva noted that Baker Hughes sees particular potential in electric compression and digital technologies that enable smarter, data-driven operations.
“The ability to produce more energy from existing infrastructure while reducing operational emissions will become an increasingly important competitive advantage.
Ultimately, the projects that succeed will be those that deliver on the energy trilemma: security, affordability, and lower emissions. We believe integrated technology solutions will play a critical role in helping operators achieve those objectives while unlocking greater value from their investments,” she explained.
Gains from incorporating AI
Akoltseva noted that Baker Hughes has been incorporating artificial intelligence (AI) in the software we use for both product development and service delivery for more than 20 years.
“We use it for a wide range of applications, including estimating downhole quantities that are difficult to measure directly, improving communications downhole, monitoring equipment and predicting failures, and transferring engineering and laboratory models to the field.
We also package AI methods in software for our customers to use. For example, our Kantori™ autonomous well construction solution uses AI workflows to help our customers improve their efficiency developing and executing drilling programs, while our Leucipa™ automated field production solution does the same to help our customers improve production, minimize deferrals, and manage interventions and well integrity. We also offer our Cordant™ industrial enterprise solution that uses AI to extend the life and improve utilization of assets,” she explained.
The regional VP noted that within the past year, agentic AI packages have been incorporated into these products.
“These packages enable natural language interaction with the data and the underlying program functionality. They also allow operators to run specific workflows with fewer mouse clicks and steps overall, as well as to automate follow-up on operational decisions with economic analysis once the actions have been completed, with minimal instruction and dedicated scripts.
Several large IOCs have shown substantial economic gains with these products, and AI continues to provide meaningful improvements in our underlying service delivery performance,” she explained.
Akoltseva noted that as Baker Hughes’ customers seek to maximize the value of existing assets while reducing emissions, the company’s priority is helping them achieve both objectives at the same time.
“We are investing in technologies that improve efficiency, reliability, and asset performance, from advanced turbomachinery and digital solutions to electrification and emissions reduction technologies.
The focus is on delivering practical, measurable outcomes: extending asset life, increasing production efficiency, reducing emissions, and lowering operating costs. In markets such as the Caspian, where existing infrastructure remains critical to energy security and economic growth, we see significant opportunities to unlock additional value from mature assets while supporting decarbonization goals. Technology-enabled productivity and emissions reduction will continue to guide our investment and innovation priorities,” she said.
Priority markets for increasing Baker Hughes’ presence
Akoltseva pointed out that Baker Hughes is increasing its focus in markets where energy demand is growing, existing infrastructure requires modernization, and operators are seeking to improve efficiency while reducing emissions.
“This includes key energy-producing regions such as the Middle East, the Caspian, and parts of Asia, where long-term investment in both conventional energy development and lower-carbon technologies continues to accelerate.
In the Western Hemisphere, we’re targeting opportunities in Venezuela. We recently entered into a strategic alliance agreement with PDVSA, Lindsayca and Fulcrum LNG, Inc. to revitalize and expand the country’s natural gas infrastructure. We also recently signed a Memorandum of Understanding (MOU) with New Stratus Energy Inc. to support the development of future oil and gas prospects in the country,” she said.
The regional VP noted that primary drivers for these decisions stem from the need for reliable, affordable, and lower-carbon energy.
“Our customers are looking for technologies that can enhance production, improve asset performance, reduce emissions, and support energy security. Baker Hughes is well positioned to meet these needs through our portfolio of turbomachinery, digital solutions, well construction technologies, and electrification offerings,” Akoltseva concluded.
