Azerbaijan's State Oil Company establishes subsidiary for Babek project in Caspian

BAKU. June 10 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) has established a subsidiary, SOCAR Babak LLC (Babek), according to materials from the Azerbaijani State Tax Service (STS).

According to the STS, the company was registered on May 25. The legal address is listed as SOCAR Tower - the head office of SOCAR on Heydar Aliyev Avenue in Baku.

The head of the company is Javid Zeynalov.

SOCAR regularly creates legal entities for more effective project implementation. Previously, subsidiaries were created for the Bahar, Tamar, Shafag-Asiman and other projects.

The Babek prospect is part of the Umid-Babek block, located in the deep-water part of the Azerbaijani sector of the Caspian Sea, 75 km from Baku. The sea depth here ranges from 60 meters to 700 meters. Tectonically, the structure has a complex composition.

The Babek structure was discovered in 1959. In 2012, three-dimensional seismic surveys were conducted on it, and the geological structure of the structure was refined. On the structure, whose productive formations contain gas condensate accumulations, the drilling of an exploration well with a projected depth of 6.75 km to the break formation horizon is planned in an area with a sea depth of 62 meters.

Since 2017, exploration and development work on the Babek structure has been entrusted to the operating company Umid Babek Operating Company (UBOC).

A risk service contract for the exploration and development of the Umid-Babek block was signed in 2017 between SOCAR and SOCAR Umid Oil and Gas. It is accompanied by an agreement on exploration and development of the block between Umid Babek Exploration & Production and SOCAR Umid Oil and Gas.