Umid gas field

Umid field is a part of a block previously consisting of Umid and Babek fields.{{cite news |url= http://www.echo-az.info/otkrytie-mestorozhdeniya-umid-po-sushhestvu-privodit-k-otkrytiyu-ochen-krupnyx-gazovyx-mestorozhdenij-%E2%80%93-ilxam-aliev.html |title=Открытие месторождения "Умид" по существу приводит к открытию очень крупных газовых месторождений – Ильхам Алиев

|trans-title=Ilham Aliyev: "Discovery of Umid field will lead to discoveries of large gas fields" |publisher= Ekho-Az |date=2010-11-25 |access-date=2010-12-06}} The geophysical works at Umid started in 1953 which were repeated in 1972. A total of 9 wells were drilled in the area from 1977 to 1992, however no commercially viable fields were discovered at the time.{{cite news |url=http://www.azernews.az/site/Oil_$_Gas/27210-Aliyev:_Azerbaijan_will_have_a_say_as_gas_exporter |title=Aliyev: Azerbaijan will have a say as gas exporter |publisher=Azernews |date=2010-11-26 |access-date=2010-12-06}}

In 2009, SOCAR financed the exploration works at Umid itself.{{cite news |url=http://www.upstreamonline.com/live/article237603.ece |title=Socar tallies up giant Umid field |publisher=Upstream Online |date=2010-11-26 |access-date=2010-12-06}} This is the first time since the Contract of the Century that Azerbaijan conducted exploration works entirely on its own.{{cite news |url=http://en.trend.az/capital/business/1786916.html |title=Azerbaijani President meets SOCAR management as Umid gas field commissioned in Caspian Sea |publisher=Trend News Agency |date=2010-11-24 |access-date=2010-12-06}} The discovery of 200 bcm and 30-40 million tons of condensate (around 270-360mn bbl) initially forecasted by Khoshbakht Yusifzadeh was announced by SOCAR on November 24, 2010 after successful drilling at {{convert|6500|m|ft|}} on exploration platform Umid-1.{{cite news |url=http://news.az/articles/economy/27797 |title=Umid gas field to bring $45bn of net income, expert |publisher=News.az |author=Akper Hasanov |date=2010-12-06 |access-date=2010-12-06 |archive-date=2016-12-20 |archive-url=https://web.archive.org/web/20161220163416/http://news.az/articles/economy/27797 |url-status=dead }}{{cite news |url=http://www.pennenergy.com/index/articles/newsdisplay/1312446231.htm|title=Umid Discovery Suggests Upside Potential To Reserves |publisher= Penn Energy |date=2010-12-01 |access-date=2010-12-06}}

President Ilham Aliyev of Azerbaijan placed enormous hopes on the Umid gas field, remarking in 2010: "This field has a great future".{{cite web|title=Месторождение "Умид" увеличит газовый потенциал Азербайджана - президент|url=http://anspress.com/index.php?a=2&lng=ru&nid=73038|publisher=Azertaj|access-date=30 December 2015}} In 2012 President Aliyev continued pinning great hopes on the competent development of the Umid gas block as part of overall major gas export strategy for Azerbaijan: "One of the wonderful events of recent months is that early gas has been produced from “Umid” field. This is a great indicator. The rate of the gas wells is very high. The first well has very encouraging figures. So “Umid” lives up to its name. The discovery of “Umid” by the State Oil Company of Azerbaijan is a historic event. The State Oil Company has managed to develop this large gas field on its own for the first time in recent years."{{cite web|title=President Ilham Aliyev speech (09.10.2012)|url=http://www.azleadersays.com/en/sitat/1588_From-the-closing-remarks-at-a-meeting-of-the-Cabinet-of-Ministers.html|publisher=Government of Azerbaijan|access-date=30 December 2015|archive-date=6 April 2022|archive-url=https://web.archive.org/web/20220406151701/http://www.azleadersays.com/en/sitat/1588_From-the-closing-remarks-at-a-meeting-of-the-Cabinet-of-Ministers.html|url-status=dead}}

The joint venture of SOCAR with Nobel Oil Group drilled three wells in the Umid gas field since 2012. One well failed, while the other two produced decreasing amounts of natural gas: in 2012 – 1,500 thousand cubic meters of gas, 2013 – 638,000 cubic meters, and in 2014 - 630,000 cubic meters of gas per day. The plan was to drill a total of six wells producing one million to 1.5 million cubic meters of natural gas per day.{{cite web|title=На морском газовом месторождении "Умид" сдана в эксплуатацию новая высокодебитная скважина (Бахрам Рустамбеков, В.Т.)|url=http://www.1news.az/economy/oil_n_gas/20140130115604001.html|publisher=1news.az|access-date=30 January 2014}}

The Nobel Oil Group is a corporate group operating primarily in the USA (Permian Basin), UK, in the Republic of Azerbaijan and in Romania. The Group provides integrated operating services within the oil and gas sector and is also developing its exploration and production capabilities. The group was set up by Azerbaijan-born Mr. Nasib Hasanov, the owner and founder of Nobel Oil Group.{{cite web|title=bne intellnews, last updated in 21 December 2016|date=19 February 2016|url=http://www.intellinews.com/nobel-oil-services-uk-appoints-new-ceo-and-chairman-91027|publisher=BNEIntellnews}} As a result of reorganization in 2014, all service segments of the oil and gas industry were united under Nobel Oil Services (UK) Limited, which is a parent company of Global Energy Solutions LLC, Prokon LLC, Absheron Drilling LLC, Llamrei DMCC, etc.{{cite news|title=Our Business, Nobel Oil|url=http://www.nobeloil.com/Our-Business.aspx|access-date=12 March 2018|website=icpcredit.com|archive-date=2 April 2015|archive-url=https://web.archive.org/web/20150402153921/http://www.nobeloil.com/Our-Business.aspx|url-status=dead}} The exploration and production business was separated under the name of Nobel Oil E&P (UK) Limited (Nobel Upstream trademark), which is a parent company of Nobel Oil E&P Caspian Limited, Nobel Oil E&P North Sea Limited, Nobel Oil E&P North America (UK) Limited, and Nobel Oil E&P North America LLC.{{cite news|title=About Nobel Upstream|url=http://nobelupstream.com/Home/About-Us/About-Nobel-Upstream.html|access-date=12 March 2018|website=icpcredit.com|archive-date=3 April 2022|archive-url=https://web.archive.org/web/20220403170525/https://nobelupstream.com/Home/About-Us/About-Nobel-Upstream.html|url-status=dead}}

In October 2014 SOCAR and Nobel Oil Group decided to stop all drilling due to "technical problems in the production process",{{cite news|title=Azerbaijan's SOCAR issues tender for two Caspian Sea gas deposits|date=10 September 2014|url=http://uk.reuters.com/article/azerbaijan-gas-idUKL5N0RB3GK20140910|archive-url=https://web.archive.org/web/20160304104048/http://uk.reuters.com/article/azerbaijan-gas-idUKL5N0RB3GK20140910|url-status=dead|archive-date=March 4, 2016|work=REUTERS|access-date=10 September 2015}} and announced a new international tender for a fresh foreign partner to lead the way and create a new strategy.{{cite web|title=SOCAR отказалась от бурения новых скважин на газоконденсатном месторождении Умид|url=http://abc.az/news_10_09_2014_83553.html|publisher=ABC.az|access-date=9 October 2014}}{{Dead link|date=February 2021 |bot=InternetArchiveBot |fix-attempted=yes }}{{cite web|title=МЕСТОРОЖДЕНИЕ "УМИД" ОКАЗАЛСЯ SOCAR НЕ ПО СИЛАМ?|url=http://digest.az/index.php/ru/neft-i-gaz-azerbajdzhana/1083-mestorozhdenie-umid-okazalsya-socar-ne-po-silam|publisher=Haqqin.az|access-date=10 September 2014|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220163847/http://digest.az/index.php/ru/neft-i-gaz-azerbajdzhana/1083-mestorozhdenie-umid-okazalsya-socar-ne-po-silam|url-status=dead}} As of January 2016, the tender has not been materialized. Since March 2015 SOCAR and Nobel Oil Group decided to drill a new appraisal well to get a better estimate of gas reserves in Umid, and hope that this drilling expense will be absorbed by the future foreign partner.{{cite web|title=SOCAR продолжает буровые работы на месторождении Умид |url=https://www.1news.az/economy/oil_n_gas/20151014045609157.html|publisher=1News.az|access-date=14 October 2015}}

{{cite web|title=SOCAR возобновляет бурение на месторождении Умид|url=http://interfax.az/view/634098|publisher=Interfax|access-date=11 March 2015}}

According to the wishes of SOCAR and Nobel Oil Group the new foreign partner must have not only the skills and experience of deep-water offshore drilling, but also have available cash reserves.{{cite web|title=SOCAR объявила тендер на совместную разработку газовых месторождений на Каспии|url=http://www.caspianoilgas.az/2015/?p=news__read&t=top&q=156&l=ru|publisher=Caspian Oil & Gas|access-date=15 September 2014|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304070156/http://www.caspianoilgas.az/2015/?p=news__read&t=top&q=156&l=ru|url-status=dead}}

According to expert determinations, the Umid ("Hope") gas field was too technologically challenging for the two companies developing it, despite spending some US$5 billion already by 2010, and expecting, at the time of high gas prices, about $45 billion in net operating income.{{cite web|title=Umid gas field to bring $45bn of net income, expert (by Akper Hasanov, 06 December 2010)|url=http://news.az/articles/economy/27797|publisher=News.az|access-date=30 December 2015|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220163416/http://news.az/articles/economy/27797|url-status=dead}} Since 2010 expenses have only increased whilst natural gas market prices have fallen.{{cite web|title=SOCAR'S GAS EXPORT PRICE PLUNGES BY CUTTING DELIVERIES TO RUSSIA|url=http://www.naturalgaseurope.com/socar-exported-gas-price-plunges-by-cutting-deliveries-to-russia|publisher=Azerbaijan Centre for Oil Studies|access-date=21 January 2015}}{{blockquote|"In 2014, the price of 1000 cubic meters (cm) of exported gas by SOCAR was $166.89, while this figure in 2013 was $231.29, which marks an 28 percent increase."}}

In July 2021 an explosion was recorded a short distance from the Umid-1 platform.{{cite web|title=Blast rocks Caspian Sea sector near Azerbaijani gas field|date=4 July 2021|url=https://apnews.com/article/caspian-sea-europe-azerbaijan-business-e758f2864af21e1c149f87638a79c86d|publisher=Associated Press|access-date=5 July 2021}}

The gas field currently JV between SOCAR (80%) and Nobel Oil (20%) companies.{{cite web| url=http://new.socar.az/socar/en/company/joint-ventures/socar-umid-llc | title=SOCAR UMID LLC | archive-url=https://web.archive.org/web/20141116024214/http://new.socar.az/socar/en/company/joint-ventures/socar-umid-llc | archive-date=2014-11-16}} The JV's founding capital was just 1,000 AZN.{{cite web|title=Construction of offshore platform on Umid saves SOCAR's $180m|url=http://news.az/articles/economy/22825|publisher=News.az|access-date=7 January 2016}}

It has been reported that Statoil was negotiating in 2013 to take a major role in developing a cluster of Umid, Babek, Zafar and Mashal fields.

{{cite news

| url = http://www.upstreamonline.com/live/article1315790.ece

| title = Statoil 'in talks for Azeri mega-project'

| first = Steve | last = Marshall

| newspaper = Upstream Online

| publisher = NHST Media Group

| date = 2013-01-31

| access-date = 2013-01-31}}

SOCAR leadership estimates that with further drilling, the overall reserves at Umid are likely to reach 300 bcm while those of Babek field lying under Umid will reach 600 bcm. Drilling at Babek will also be done by SOCAR. The Azerbaijan's total gas reserves are estimated at 3 to 5 trillion cubic meters (tcm). The discovery will boost Azerbaijan's potential as gas exporter to Western countries through the European evacuation route, i.e. Trans-Adriatic pipeline or Nabucco West pipeline.{{cite news |url=http://uk.finance.yahoo.com/news/UPDATE-1-Azerbaijan-Umid-gas-targetukfocus-1119658655.html?x=0 |title= Azerbaijan: Umid gas reserves 2nd only to Shah Deniz |publisher=Yahoo Finance |date=2010-11-24 |access-date=2010-12-06}}

{{Portal|Azerbaijan|Energy}}

• Azeri–Chirag–Gunashli
• Shah Deniz gas field
• Shafag-Asiman gas field
• Nakhchivan field

{{Reflist}}

{{Energy in Azerbaijan}}

{{coord missing|Azerbaijan}}

Category:Natural gas fields in Azerbaijan

Category:Caspian Sea