SOCAR moving to new model for managing mature fields

The State Oil Company of Azerbaijan (SOCAR) is implementing a new mature field management model focused on long-term value creation rather than short-term production growth, SOCAR Reservoir Development Manager Murad Seyidov said at a panel discussion at the Caspian Technical Conference 2025 SPE in Baku, Report informs.

"We are transitioning to a management model that prioritizes value creation over production volume... In working with mature fields, our goal is not simply to increase production, but to enhance the overall asset value," he noted.

According to Seyidov, SOCAR's current strategy is aimed at mitigating risks and fostering a sustainable long-term outlook.

"Companies often make two key mistakes when rehabilitating mature fields. The first is poor financial decisions. The second is an excessive focus on short-term production increases. As a field matures, many companies instinctively shift to operations that yield immediate results. SOCAR, with its current strategy, seeks to minimize precisely these risks," he said.

He noted that this approach weakens the asset's long-term potential and slows strategic development: "A mature field should be treated not as an old asset, but as a different project with new conditions and constraints. Otherwise, value is lost, and this hinders long-term growth."

Seyidov also noted that more than 70% of global oil production comes from mature fields, and this defines SOCAR's portfolio.

"SOCAR currently operates approximately 10,000 wells at more than 30 fields. The vast majority of these are mature fields over 100 years old. For this reason, restoration is not an option for us, but a part of our daily operations," he added.