Oil & Gas in Azerbaijan

For well over a decade, Azerbaijan has capitalised on its large hydrocarbon resources, actively encouraging direct foreign investment in its oil and gas industry. This investment has revitalised the country’s oil sector through the development of large-scale projects and the refurbishment of existing facilities.

With the completion of new pipelines, notably the BTC (Baku-Tbilisi- Ceyhan) and BTE (Baku-Tbilisi-Erzurum) pipelines, Azerbaijan has not only guaranteed secure routes to market for its oil and gas reserves but also positioned itself as one of the largest producers in the Caspian region and a potential transportation hub for other Caspian littoral states including Kazakhstan and Turkmenistan.

The majority of oil production growth in Azerbaijan has been provided by the Azeri-Chirag-Guneshli (ACG) field. The Azerbaijan International Operating Company (AIOC) accounts for over 70% of the country’s total oil exports. The majority of the Azerbaijan’s natural gas is produced from offshore fields and most of the country’s natural gas production increases in the future are expected to come from the development of the Shah Deniz offshore natural gas and condensate field, considered one of the world’s largest natural gas field discoveries over the last twenty years.