The Garabagh field is located in the southern part of the Caspian Sea, 120 km east of Baku, 20-25 km from the Oil Rocks and Gunashli fields, in the northern part of the Absheron archipelago. The depth of the sea in the area of the rise is 150-200 m.
The rise of Garabagh was discovered in 1959 as a result of seismic surveys. After a series of surveys, the site was prepared for deep exploration drilling in 1984. In 1995, a production sharing agreement was signed for the development of the Garabagh field, which entered into force in February 1996. As a result of 3-D seismic exploration, the geological structure of the field was clarified. According to the agreement, a consortium led by the Caspian International Petroleum Company, which was established that year, drilled three exploration wells in the field in 1997-1998. Two wells confirmed that both layers were gas-saturated in the south-eastern part of the structure, and one well found that the upper layer (Girmaki Ustu Gumlu (Girmaki Upper Sandy)) in the north-western part of the structure was oil-saturated, and the lower layer (Girmaki Alty (Girmaki Lower)) was gas-saturated. During a meeting of the Caspian International Petroleum Company’s Steering Committee in January 1999, the development of the Garabagh field was considered economically inefficient. On February 22, 1999, the Caspian International Petroleum Company ceased operations and the agreement was terminated in April of that year.
In May 2018, SOCAR Garabagh (50%) and Norwegian Equinor (50%) signed a Risk Service Agreement for the development of the Garabagh oil field in the Caspian Sea. The agreement was ratified and entered into force by Milli Majlis of the Republic of Azerbaijan in June 2018. According to the agreement, in December 2019, drilling of the 4th appraisal well in the field began. The well was drilled by SOCAR’s Caspian Drilling Company (CDC) with the Dada Gorgud floating rig at a depth of 180 m and was completed in March 2020. The well confirmed the oil content of the field at a depth of 3,385 m.
The Garabagh field is the first oil field discovered during independence of our country and it has initially estimated geological reserves of more than 60 million tons of oil. The field envisages drilling 6 oil, 2 gas production and 3 water injection wells. The Garabagh Joint Operating Company was established jointly by SOCAR and Equinor to ensure the fulfilment of commitments on the field.
As a result of Equinor’s decision of divestment in our country, joint development of the field was paused, joint operating company was liquidated, and the corresponding handover/takeover process was started. On December 22, 2023, an agreement was signed for SOCAR's acquisition of Equinor’s 50% stake in the Garabagh project.