UMID-BABEK Operating Company

 

According to the analysis of seismic surveys, the UMID-BABEK offshore field constitutes a single block. Based on this fact, on the 2nd of May 2016, by the Decree of the President of the Republic of Azerbaijan, the Risk Services Agreement (RSA) was prepared for the exploration and development of the UMID-BABEK offshore block, that includes the UMID field and the BABEK perspective structure in the Azerbaijan sector of the Caspian Sea.

 

Based on the order №656-VQ dated 02.05.2017, the RSA between SOCAR and “SOCAR Oil and Gas Limited” as well as the contract between SOCAR UMID O&G Ltd. and “UMID-BABEK Exploration & Production” companies were sanctioned. As a result, “SOCAR UMID Ltd.” was terminated / dissolved.

 

Currently, the development and operation of the UMID-BABEK block is managed by the UMID BABEK Operating Company (UBOC).

 

After the transfer of obligations to the branch of the UBOC in the Republic of Azerbaijan, the UMID Field Development Plan and the BABEK Exploration Plan were developed, this launching project execution in January 2018.

 

The UMID-BABEK project plays an important role in regulating / maintaining the country's energy balance.

 

In order to expand / facilitate the development of the UMID field, "UMID-1 Platform’s Production Acceleration” project is being successfully implemented under the leadership of SOCAR. "UMID-1 Platform’s Production Acceleration” project is one of the first projects that is based on international experience and is being implemented with the help of innovative technologies and modern equipment. The main goal of the project is to eliminate the limitations of the transportation system (from UMID-1 platform) and to increase production by drilling new wells.

 

General information on “Umid” field və “Babek” prospective structure

 

The Umid-Babek offshore block is located 75 km south of Baku, within the Caspian Sea. The water depth in the Umid field ranges from 50 to 120 meters, while in the Babek prospective structure, it varies between 60 and 650 meters. According to the international classification, the reservoir is classified as a high-pressure, normal-temperature gas condensate reservoir.

 

The Umid structure was discovered during geological exploration in 1953. Deep drilling operations began in this area in 1977. Despite drilling nine exploration wells in the structure between 1977 and 1996, no positive results were obtained. Two-dimensional (2D) seismic exploration carried out in different years did not provide accurate information about the geological structure of the field. The discovery of the Shah Deniz field, the construction of the South Caucasus Pipeline, and the reformation of the gas strategy in our country have led to new plans to accelerate the exploration of new gas fields, including the Umid structure. Consequently, it was decided to drill an exploration well to evaluate the structure. In June 2009, the Umid-1 platform was put into operation using SOCAR's internal resources, and exploration drilling of the first well from the platform began in August of the same year. The U1-8 exploration well drilled in the north-eastern area reached a depth of 6,006 meters in November 2010, and the hydrocarbon bearing reservoir was determined.

 

According to preliminary calculations, the reserves of the field are estimated to be 200 billion cubic meters of gas and 40 million tons of condensate.

 

The production from Umid filed initiated in 2012, from well U1-10. With acquisition of geological/geophysical and dynamic data 2014 area depletion plan, together with 2018 full field development plan for North flank were agreed with SOCAR. In order to accelerate production from Umid-1 platform, , the drilling and completion of wells from Umid-1 platform were improved, two additional wells were drilled, increasing the daily production capacity to 8.1 million cubic meters of gas and 1150 tons of condensate. In the next stage, with the drilling and exploitation of three additional wells from the Umid-2 platform in the Northern area, the production from the field will be increased to 12 million cubic meters of gas and 1450 tons of condensate. To maintain sustainable production from the Umid field and further explore and develop the deep reservoirs, plans are underway to drill an exploration well in the Southern area, which will be executed as part of the 2023-2027 development program.

 

“Babek” prospective structure is part of the “Umid-Babek” tectonic block which is divided into two separate areas, being the continuation of the Umid gas-condensate reservoir separated by mud volcano. The “Babek” uplift was discovered in 1959 through seismic exploration. After the discovery and initial development of the “Umid” field, three-dimensional (3D) seismic exploration was conducted in the “Babek” structure in the “Umid-Babek” offshore block in 2012, providing further insights into the geological structure. An exploration well with a total depth of nearly 7,000 meters, is planned to be drilled in water depth of 62 meters as part of the project.