Agreement on the Rehabilitation, Development, and Production Sharing for the Block Including the Neftchala, Khilli, Durovdagh-Babazanan Fields and the South-West Flank of the Mughan Monocline in the Azerbaijan Republic was signed by SOCAR, the "Global Energy" Azerbaijan Company and SOCAR Ally Oil Company. The "Neftchala Operating Company" is the operator.
The agreement went into effect on October 5, 2009. The agreement covers an area of 2707.7 km2.
Oil and gas operations are underway in the Neftchala, Khilli, and Durovdagh fields. In addition, the Babazanan, Azadkend, Nesimkend, Heshimkhanli, Serkhanbeyli, Mughanly, and Orta Mughan, and Shorsulu prospects are also included in the agreement area. All the contract areas are located in the Neftchala and Salyan regions.
Currently, 2 oil and gas fields (Khilli and Neftchala) and 1 oilfield (Durovdagh) are producing.
The Durovdagh oilfield is located in the Shirvan Lowland, on the left bank of the Kura River. The Neftchala oilfield began full scale production in 1931, Khilli in 1954, and Durovdagh in 1978. Cumulative oil production as of January 1, 2011 for the Neftchala Field was 6963000 tons of oil, Khilli Field - 704000 tons of oil, Durovdagh Field -508 million m3 of gas.