SOCAR establishes subsidiary for oil production project in UAE

BAKU. July 2 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) has established a subsidiary, SOCAR Sarb Umm Lulu LLC, according to materials from the Azerbaijani State Tax Service (STS).

The new company was registered on July 1, 2025, with a charter capital of 1,000 manat ($588), according to the STS. The company's director is Agamamad Sultanov.

The company was created to participate in an oil production project in the UAE under the offshore concession SARB, Umm Lulu, Bin Nasher and Al Bateel, where it holds a 3% stake.

As reported, the deal for SOCAR to acquire a 3% stake in the offshore concession SARB, Umm Lulu, Bin Nasher, and Al Bateel from Abu Dhabi National Oil Company (ADNOC) was completed on May 30, 2024. The transaction value was $285 million.

As of June 30, 2024, SOCAR's revenue from this project amounted to 191 million manat, with a net profit of 16 million manat.

SARB and Umm Lulu are two fields located offshore from Abu Dhabi. SARB was discovered in 1969 and has been developed by ADNOC since 2010. Umm Lulu was opened in 1981 and was originally developed as part of the ADMA-OPCO contract area. SARB was merged with Umm Lulu and granted to ADNOC under a new 40-year concession.

The offshore concession Umm Lulu, SARB, Bin Nasher and Al Bateel consists of two main fields, Umm Lulu and SARB, as well as two smaller fields, Bin Nasher and Al Bateel. The concession is operated by Abu Dhabi Company for Offshore Petroleum Operations Limited (ADNOC Offshore).

Current daily production under the project stands at 255,000 barrels of oil. By the end of the contract, total production is expected to reach 2 billion barrels of oil, though this volume could increase to 2.7 billion barrels through additional projects.

Initial geological oil reserves at the SARB field are estimated at 257 billion barrels, while the Umm Lulu field holds 3.8 billion barrels.

Following the transaction, the parties' share in the project is as follows: ADNOC - 57%, OMV and TotalEnergies - 20% each, SOCAR - 3%.

The official exchange rate on July 2 is 1.7 manat/$1.