• Key performance data for the exploration and production sector. This section presents the sector’s major performance indicators: meters drilled, rates of production, and scopes of well servicing and workover operations.
• Overview of major customers. This section looks at customer requirements for drilling, well intervention and enhanced oil recovery applications. It also discusses the sector’s new promising projects.
• Key customer profiles. The section focuses on the companies’ main operating regions and services they provide, as well as on the oilfield service companies’ productive capabilities.
• Medium-term forecast of production and drilling for 2013 through 2020. This section assesses the future prospects of major production projects and producers’ drilling plans.
• Comments on the future of oilfield service providers’ operations in Azerbaijan’s market. The section offers insights on oilfield service companies’ growth prospects in Azerbaijan’s market (in particular identifying promising market segments), analyses the main risks and offers recommendations regarding individual companies’ potential presence in the region.

Conclusions

1 Main indicators of the oil and gas industry

1.1 Oil Production

1.2 Gas Production

2 Oil Field Services Market of Azerbaijan

2.1 Drilling

2.1.1 Production Drilling

2.1.2 Exploration drilling

2.2 Well Servicing and Workover

2.3 Main Customers

2.3.1 SOCAR

2.3.2 AIOC

2.3.3 Shakh-Deniz

2.3.4 Absheron project

2.3.5 Bakhar Energy

2.3.6 Salyan Oil

2.3.7 JV Shirvan Oil

2.3.8 Karasu Operating Company

2.3.9 Binagadi Neft

2.3.10 Absheron Operating Company

2.3.11 Surakhanу Oil Company

2.3.12 BР Shafag-Asiman Ltd

2.4 Main Contractor Profiles

2.4.1 SOCAR-AQŞ

2.4.2 AzeriMI Drilling Fluids Ltd. SP

2.4.3 Caspian Drilling Company Ltd.

2.4.4 КСА Deutag

2.4.5 Gulf Drilling

2.4.6 Weatherford

2.4.7 Schlumberger

3 Forecasts for Oil and Gas Production in 2012-2020

3.1 Forecasts for Oil and Gas Production

3.2 Drilling Forecasts

3.2.1 Exploration Drilling

3.2.2 Production Drilling

4 Commentary on prospects for entering the Turkmenian market

Chart 1. Forecasts of oil field services market dynamics in Azerbaijan, 2011-2020, USD million.

Chart 2. Contributions by segments to the growth of the oil field services market in Azerbaijan, 2012-2020, %%

Chart 1-1. Oil production in Azerbaijan in 1996-2012, mln. tons

Chart 1-2. Gas production in Azerbaijan in 2001-2012, bcm per annum

Chart 2-1. Drilling in Azerbaijan in 2010-2012, thousand meters

Chart 2-2. Drilling in Azerbaijan in 2012 by main customers, thousand meters(% share)

Chart 2-3. Drilling market shares of the main contractors in Azerbaijan in 2012, %

Chart 2-4. Production drilling in Azerbaijan by main customers in 2009-2012, thousand meters

Chart 2-5. Production drilling by SOCAR in Azerbaijan in 2002-2012, thousand meters

Chart 2-6. Exploration drilling of SOCAR in Azerbaijan in 2002-2012, thousand meters

Chart 2-7. Wells drilled by Salyan Oil in 2005- 2011, units.

Chart 3-1. Forecasts of oil and gas condensate production in Azerbaijan until 2020, mln. tons per annum

Chart 3-2. Oil production scenarios for AChG: current and early projections, thousand bpd

Chart 3-3. Forecsts of gas production in Azerbaijan until 2020, billion cubic meters per annum

Chart 3-4. Exploration drilling forecasts for the Azeri Caspian shelf until 2020, thousand meters per annum

Chart 3-5. Production drilling forecasts for the Azeri Caspian shelf area until 2020, thousand meters per annum

Table 1. Oil services market capacity of Azerbaijan by segments, USD million, 2012

Table 2. Profile of the production and oil field services industry of Azerbaijan

Table 1-1. Azerbaijan’s oil projects with foreign participation

Table 1-2. Oil production in Azerbaijan by production companies in 2009-2012, thousand tons

Table 1-3. Azerbaijan’s gas projects involving foreign companies

Table 1-4. Gas production in Azerbaijan in 2009-2012, mcm per annum

Table 2-1. Prospecting drilling in Azerbaijan by companies in 2010-2012 (thousand meters, completed wells)

Table 2-2. Dynamics of active and inactive wells in Azerbaijan, 2008-2011

Table 2-3. Well stock of SOCAR as of July 1, 2011.

Table 2-4. Performance indicators for SOCAR, 2011-2012

Table 2-5. Dynamics of the well stock and productivity at AChG in 2009-2012

Table 2-6. Well drilling at the Azeri-Chirag-Gyuneshli contract territory in 2010-2012

Table 2-7. Performance indicators for the project "Shah-Deniz" for 2011-2012

Table 2-8. Perfomans indicators for Bakhar Energy, 2011-2012

Table 2-9. Bakhar Energy field development program for 5 years, 2012-2015

Table 2-10. Performance indicators for Shirvan Oil, 2011-2012

Table 2-11. Performance indicators for Karasu Operating Company, 2010-2012

Table 2-12. Performance indicators for Binagadi Neft, 2010-2012

Table 2-13. Performance indicators for Absheron Operating Company, 2010-2012

Table 2-14. Performance indicators for «Surakhanу Oil Company»,2009-2012 гг

Table 2-15 Key service companies operating in Azerbaijan, 2012

Table 2-16. Production capacity of key service companies in Azerbaijan, units, 2012

Table 2-17. Drilling rigs of KCA DEUTAG in Azerbaijan