SOCAR enters Persian Gulf oil production

Azerbaijan’s state oil company SOCAR has started oil production abroad for the first time, launching operations at the SARB and Umm Lulu fields in the Persian Gulf through its affiliate SOCAR SARB Umm Lulu.

On May 30, 2024, SOCAR acquired a 3% stake in ADNOC’s (UAE) offshore concessions for $285 million. SARB is operated by ADNOC (57%), OMV and TotalEnergies (20% each), while Umm Lulu replaces TotalEnergies with Spain’s Cepsa. The concession runs until 2050.

Reserves are estimated at 2.57 billion barrels at SARB and nearly 4 billion at Umm Lulu. Current production is about 40 million barrels per year at SARB and more than 34 million at Umm Lulu.

The fields use intelligent well surveillance technologies to optimize operations.

SOCAR and ADNOC also cooperate on Azerbaijan’s Absheron gas project and on low-carbon, geothermal and hydrogen initiatives.

N.Tebrizli