Azerbaijan Oil and Gas Upstream Market Size (2024 - 2029)

The Azerbaijan oil and gas upstream market is anticipated to experience growth, driven by the involvement of international oil and gas companies and joint ventures with the State Oil Company of the Azerbaijan Republic. Despite the challenges posed by the country's renewable energy plans and fluctuating crude oil prices, the market has rebounded to pre-pandemic levels. Technological advancements and the potential of deepwater projects in the Gunashli field present significant opportunities for market expansion.

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Market Size of Azerbaijan Oil and Gas Upstream Industry

Azerbaijan Oil and Gas Upstream Market - Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 1.50 %
Market Concentration Low

Major Players

Azerbaijan Oil and Gas Upstream Market Major Players

*Disclaimer: Major Players sorted in no particular order

Azerbaijan Oil & Gas Upstream Market Analysis

The Azerbaijan oil and gas upstream market is projected to register a CAGR of 1.5% during the forecast period.

The COVID-19 pandemic negatively impacted the market in 2020. However, the market has now reached pre-pandemic levels. The presence of international oil and gas majors such as BP, and Total, along with several joint ventures with the State Oil Company of the Azerbaijan Republic (SOCAR) for the exploration and production of several onshore and offshore fields, is expected to drive the market's growth during the forecast period. However, the increasing benefits and the country's plan to increase the share of renewables in the energy mix, complemented by volatile crude oil prices, are expected to hinder the growth of the market studied.

Technological improvements and increasing viability of deepwater and ultra-deepwater projects in the Gunashli field are expected to create ample opportunity for the market players in Azerbaijan oil and gas upstream market.

Azerbaijan Oil & Gas Upstream Industry Segmentation

The oil and gas industry's upstream activities include exploration, creating geological surveys, obtaining land rights, and production, which includes onshore and offshore drilling.

The Azerbaijan oil and gas upstream market is segmented by operation and location. By operation, the market is segmented into exploration, development, and production). By location, the market is segmented into onshore and offshore. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).

By Operation
Exploration
Development
Production
By Location
Onshore
Offshore
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Azerbaijan Oil and Gas Upstream Market Size Summary

The Azerbaijan oil and gas upstream market is experiencing a resurgence, having rebounded to pre-pandemic levels after the setbacks caused by COVID-19. The market's growth is bolstered by the involvement of major international oil and gas companies such as BP and Total, which have formed joint ventures with the State Oil Company of the Azerbaijan Republic (SOCAR) to explore and produce from various onshore and offshore fields. Despite the promising growth prospects, the market faces challenges from the country's strategic shift towards increasing renewable energy sources and the inherent volatility of crude oil prices. Technological advancements, particularly in deepwater and ultra-deepwater projects like those in the Gunashli field, are expected to offer significant opportunities for market participants.

Azerbaijan's offshore regions, including the Azeri-Gunashli complex and the Shah Deniz field, are pivotal to the country's hydrocarbon production, attracting substantial foreign investment. The Azeri-Gunashli field, the largest in the Caspian Sea, and the Shah Deniz field, a major natural gas producer, are central to Azerbaijan's energy strategy. The market is characterized by a moderate level of fragmentation, with key players such as SOCAR, BP, Equinor, Total, and Chevron actively participating. Government policies and support are crucial in encouraging further investments, which are anticipated to drive the market's expansion. Recent developments, including joint ventures and contracts for engineering and maintenance services, underscore the ongoing commitment to enhancing Azerbaijan's oil and gas production capabilities.

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Azerbaijan Oil and Gas Upstream Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Azerbaijan Crude Oil Production Forecast in thousand barrels per day, till 2027

    3. 1.3 Market Size and Demand Forecast in USD billion, till 2027

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Operation

      1. 2.1.1 Exploration

      2. 2.1.2 Development

      3. 2.1.3 Production

    2. 2.2 By Location

      1. 2.2.1 Onshore

      2. 2.2.2 Offshore

Azerbaijan Oil and Gas Upstream Market Size FAQs

The Azerbaijan Oil and Gas Upstream Market is projected to register a CAGR of greater than 1.5% during the forecast period (2024-2029)

State Oil Company of the Azerbaijan Republic, BP PLC, Equinor ASA, Total SA and Chevron Corporation are the major companies operating in the Azerbaijan Oil and Gas Upstream Market.

Azerbaijan Oil and Gas Upstream Report Snapshots

Azerbaijan Oil and Gas Upstream Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)