Aquaterra Energy in Azerbaijan and the Caspian — where oil and gas is established but still evolving

Andy McDowell, Delivery Director, Aquaterra Energy

Estimated read time: 9mins

Blog summary

Our Delivery Director, Andy McDowell, reflects on the current landscape for oil and gas projects in Azerbaijan and the Caspian. From late-life brownfield redevelopment with a national oil company, to pioneering high-pressure subsea work with UBOC, he explores how operators are adapting to a mature yet active offshore landscape. With Azerbaijan reaffirming its emissions targets following COP29, Andy also shares thoughts on how engineering efficiency, local capability and modular solutions like Sea Swift can support both current production and long-term energy goals.

Offshore market dynamics in Azerbaijan and the Caspian

Azerbaijan has held a leadership position in the global energy sector for as long as the industry itself has formally existed. Mechanically drilled wells were operating near Baku by the 1840s, and by the beginning of the 20th century, the country was producing more than half of the world’s supply of oil.

Today, it continues to play a leading role. The industry has been a key driver of economic growth and Azerbaijan has one of the world’s highest energy self-sufficiency ratios, with production exceeding demand almost four times.

It’s a region with a deep history in oil and gas, and I’ve always found there’s a real clarity in how operators approach challenges here, they know their fields, they know what they want, and they’re open to doing things differently if it makes sense.

While the offshore industry in the country is mature, activity remains strong. What we’re seeing now is a strategic move toward asset optimisation, with operators aiming to extend field life and maximise returns from existing resources. Additionally, the exploration work which is taking place is typically for more technically challenging resources that demand a new level of engineering precision.

To deliver this, Azerbaijan is drawing on a well-established combination of strong local capability and international collaboration. The country has a deep base of in-country expertise, with a capable local workforce and a proven ability to work effectively with global supply chains.

Additionally, following Baku’s hosting of COP29 late last year, there is a focus on operational efficiency while accessing the remaining value of its offshore resources. This includes an emphasis on engineering approaches that support lower-cost, lower-carbon production without compromising output.

Aquaterra Energy’s experience from more than 15 year’s working in Azerbaijan

At Aquaterra Energy, we have been active in Azerbaijan’s offshore sector for over 15 years, and I’ve been involved in a fair bit of that work myself. We’ve worked over that time to build a consistent track record of technical delivery across a range of projects with our first engagements in the region beginning through long-term support for BP,  including platform tiebacks, centraliser systems and riser analysis in the Azeri-Chirag-Guneshli field.

Since then, we have developed ongoing relationships with operators, including a national oil company and Umid Babek Operating Company (UBOC). A significant part of our involvement has focused on mature assets, but we are also engaged in helping operators prepare for more technically complex projects, where efficient, cost-effective access is a priority.

Throughout, our focus has remained on delivering the right solution for each project. Whether supporting redevelopment of mature fields or preparing for technically complex exploration, we bring the same commitment to efficiency, and cost effectiveness.

Pioneering HPHT Subsea Riser Technology with UBOC

One of the most technically demanding projects we’ve delivered in Azerbaijan is a high-pressure high-temperature (HPHT) subsea riser system, designed to support UBOC with an exploration well in the Babek field for a subsea well in excess of 12,000psi Well Head Pressure (WHP). Wells at this pressure are typically drilled using semi-submersible rigs with subsea blow out preventers. Delivering the same outcome from a jack-up requires a riser system that can manage high loads, fatigue, and interface pressures while remaining safe, reliable and efficient.

To meet this challenge, we designed a bespoke HPHT riser system using our AQC-SR Connector technology to deliver the strength and fatigue performance that’s needed, with a modular design that supports fast handling and clean deployment from the rig.

When fully operational, this project will be a technical first and a clear example of how the right engineering and the right partnership can cut complexity, reduce cost and enable more efficient operations in the specific context of the Caspian. Cutting back on vessel requirements and keeping the footprint tight means lower emissions too, something that’s becoming increasingly important in this part of the world.

Optimising mature fields: Brownfield redevelopment

We are equally focused on helping operators maximise value from mature assets. Our collaboration with a national oil company on a brownfield redevelopment project is a good example of what that looks like in practice.

The project involved delivering a Sea Swift platform to replace existing infrastructure that had reached the end of its productive life. The goal was to extend the life of the field safely and efficiently using a platform that could be delivered quickly, installed using in-country capability, and minimise overall operational footprint.

These types of fast-track brownfield projects are becoming increasingly relevant across the Caspian. There is still a great deal of recoverable resource in place, and with the right engineering approach, operators can bring that value online quickly and efficiently.

Working with local talent

Azerbaijan has a strong technical base and a skilled offshore workforce. Engineers in the country know their assets, understand the challenges, and are clear on what they expect from delivery partners. It’s a confident, capable operating environment that values experience and expects practical, effective delivery.

That’s something I’ve seen first-hand over the years and it’s one of the reasons I enjoy working here. There’s always been a real openness to collaboration, and a willingness to try new approaches if they add value. That mix of local expertise and targeted support creates excellent conditions for intelligent engineering solutions.

Over our time in the region, we’ve built trusted relationships with local teams, suppliers and stakeholders, supporting consistent, in-country delivery while contributing to the development of local capability.

Our Aquaterra Academy is a natural extension of that approach. It’s a structured training programme designed to support local engineers and deepen offshore capability across global regions. We’re looking to bring the initiative to Azerbaijan, as well as other countries, as part of our commitment to working alongside in-country teams and contributing to the long-term strength of local offshore sectors.

Azerbaijan’s energy transition

Following COP29, Azerbaijan has reaffirmed its national target to cut greenhouse gas emissions by 35% by 2030. That is sharpening the focus on how to deliver traditional projects with lower emissions and greater long-term efficiency.

The country also has strong potential to diversify its energy mix. Azerbaijan holds considerable opportunities for offshore wind along the Caspian coastline. As interest in these areas grows, so too does the need for practical offshore experience that can support delivery.

I see real potential for us to contribute on both sides of that equation. We help optimise oil and gas operations through efficient engineering, modular delivery, and in-country capability that reduces complexity and cost. At the same time, we are experienced and bring the same intelligent and efficient approach to early-stage renewable development, from infrastructure planning to lower-emission technical design, and execution.

This is a region with a strong energy heritage and a clear future. I’m proud of the work we’ve done here so far, and am looking forward to what’s next. To learn more about our offshore work in Azerbaijan and across the Caspian, visit aquaterraenergy.com.

Key takeaways: 

In this piece we have answered:

Q: What is the current state of offshore energy in Azerbaijan?

A: Azerbaijan’s offshore sector remains active and strategically important. While many fields are mature, operators continue to invest in redevelopment and technically complex new exploration.

Q: How is Aquaterra Energy involved in the region?

A: We’ve supported offshore projects in Azerbaijan for over 15 years, delivering modular platforms, riser systems and technical consultancy tailored to Caspian conditions.

Q: What’s new about the UBOC riser project?

A: It will be the first time a 15,000 psi subsea well has been drilled from a jack-up rig. Our HPHT riser system enables a more efficient, lower-footprint operation in a challenging setting.

Q: How are mature fields being redeveloped?

A: Platforms like Sea Swift enable fast-track, modular redevelopment of shallow-water fields using existing infrastructure, reducing costs and installation complexity.

Q: What is Aquaterra doing to support local capability?

A:  We’ve built strong in-country relationships and we’re looking to bring the Aquaterra Academy, a global training initiative designed to develop local engineering talent and offshore capability, to Azerbaijan as part of our long-term commitment to supporting the country’s offshore sector.

Q: Can oil and gas expertise support Azerbaijan’s energy transition?

A: Yes. Our modular platform tech, like Sea Swift, has already been used in renewably powered configurations and could play a role in low-emission offshore development in the Caspian.

Bibliography

Journal of Petroleum Technology (2018). A Guide to Baku, Azerbaijan: The Oldest Oil-Producing Region in the World. [Online]. Available at: https://jpt.spe.org/twa/guide-baku-azerbaijan-oldest-oil-producing-region-world [Accessed Apr. 2025]

International Energy Agency. Azerbaijan Energy Profile: Overview. [Online]. Available at: https://www.iea.org/reports/azerbaijan-energy-profile/overview [Accessed Apr. 2025].

United Nations Framework Convention on Climate Change (2024). COP29 – United Nations Climate Change Conference, Baku, Azerbaijan. [Online]. Available at: https://unfccc.int/cop29 [Accessed Apr. 2025].

Reuters (2024). COP29 host Azerbaijan plans to upgrade climate target. [Online]. Available at: https://www.reuters.com/business/environment/cop29-host-azerbaijan-plans-upgrade-climate-target-2024-03-14/ [Accessed Apr. 2025].

Carbon Trust (2023). Azerbaijan’s offshore wind ambition has potential to drive diversification and capture regional industrial wins. [Online]. Available at: https://www.carbontrust.com/news-and-insights/news/azerbaijan-offshore-wind-ambition-has-potential-to-drive-diversification-and-capture-regional-industrial-wins [Accessed Apr. 2025].