Monday, July 22, 2024

Risk Service Agreement between SOCAR and Nobel Upstream for the Umid-Babek Gas Condensate Field in the Caspian Sea Now Complete

27th March 2018 – London

Nobel Upstream, a UK-based independent oil and gas company specialising in exploration and production, and the State Oil Company of the Azerbaijan Republic (SOCAR) have completed agreement proceedings relating to the exploration and development of one of Azerbaijan’s largest gas condensate fields: the Umid-Babek field, which is located in the area of the Caspian Sea under jurisdiction of the Republic of Azerbaijan. The Risk Service Agreement (RSA) that the two firms have entered into governs all activities on the massive hydrocarbon-rich field, promising to provide stability and growth for the gas supply to the region.

The RSA was signed into law by the Azerbaijan President on 2 May 2017 after being reviewed and ratified by the Azerbaijan Parliament (the Milli Majlis). The innovative configuration of the RSA provides the necessary framework and structural stipulations for SOCAR and Nobel Upstream to conduct petroleum operations in the offshore block within Azerbaijan’s sector of the Caspian Sea containing Umid field and Babek prospective structure. The RSA is very similar to Production Sharing Agreements (PSAs) between major oil companies like BP’s ACG and Shah Deniz projects and Total’s Absheron development that have been in operation for many years.

The Umid Babek Exploration and Production company, established by Nobel Upstream and SOCAR, is the contractor in the Umid-Babek area under the RSA. Nobel Upstream currently holds 20% of the Umid Babek Exploration and Production company.

The CEO of Nobel Upstream is very positive about the partnership between his company and SOCAR, saying that the agreement is a major milestone which will not only ensure a long and productive project between Nobel Upstream and SOCAR, but will also provide growth and stability for the Azerbaijan and European gas markets.

The Umid-Babek gas condensate field is large enough to provide energy for many years to come. The field was discovered in 2010 by Nobel Upstream and SOCAR, and it is estimated that the field contains more than 800 million barrels of condensate and over 600 billion cubic meters (BCMs) of gas reserves. The Umid-Babek field will provide approximately 3-4 BCMs annually to the Azerbaijan markets, and then later to European markets by way of the gas pipelines running from Azerbaijan, through Georgia and Turkey, and then into Italy through the so-called Southern Gas Corridor linking together South Caspian Pipeline (SCP), Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).

Nobel Upstream is an oil and gas exploration and production company. The company was established in the UK, and now operates within the Caspian Sea, the Permian Basin in West Texas (USA) and the North Sea in the UK Continental Shelf.

Elliot is the Editor at ABCMoney. He manages a team that writes and contributes to many leading publications across a number of industries.

Recent Articles

Related Stories

sakarya escort bayan Eskişehir escort bayan