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By Trend

The annual volume of gas production on the Umid-Babek offshore gas project in the Caspian Sea could amount to 3-4 billion cubic meters of gas a year at the first stage of its full-scale development, Nobel Upstream Financial Director Huseyn Gasimov told reporters in Baku on May 31.

He said that the talks are underway with SOCAR and possible partners on the future development of the block, adding that yet it is difficult to name the terms of the first stage.

"Three to four billion cubic meters of gas, which will be produced at the first stage, is planned to be delivered to the rising domestic market," Gasimov said.

According to him, at the next stage, 3-4 billion cubic meters of gas a year more will be added to the production. This volume will be sold on the regional market, and at subsequent stages - on the European market via the Southern Gas Corridor.

"Overall, to date, slightly less than two billion cubic meters of gas has been produced at the Umid field since 2012. Presently, there are three wells on the field," Gasimov added.

SOCAR announced the discovery of the Umid field in 2010.

A risk service contract (a contract with a minimum guarantee of compensation) for exploration and development of an offshore block including the Umid gas field and the promising Babek structure in the Caspian Sea was signed between SOCAR and SOCAR Umid Oil and Gas Ltd. on Jan. 12, 2017.

According to SOCAR’s data and the results of drilling of the first exploration well, the field has over 200 billion cubic meters of gas and 40 million tons of condensate.

The Umid field is located 75 kilometers from Baku.

The reserves of the Babek structure may stand at 400 billion cubic meters of gas and 80 million tons of condensate, according to preliminary data.

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