The Babazanan field is located in the south-eastern part of the Shirvan steppe, on the left bank of the Kura River. Administratively, the field is located in the Salyan region. The Babazanan area consists of a low ridge surrounded by a plain 15-23 m below sea level on all sides, with the highest point at 50 m. There is a well filled with hot iodine water drilled in 1917 on Babazanan Mountain. At 650 m south-east, there is a source of sulfur used by locals for medical purposes.
Oil and gas manifestations in the Babazanan structure were first noted by prominent scientist-geologist and academician G. Abikh. In 1849, he studied the surface oil and gas features and hot springs of hydrogen sulfide in the Babazanan plateau of Neftchala, and in 1859 again conducted geological research in the plain along the Kur and the Neftchala field. In 1861 he continued his research and in 1863 collected and published his research in the book “Information on the formation of islands in the Caspian Sea and mud volcanoes in the Caspian region.”
The first official information about the presence of oil in the structure was given in the early twentieth century. In the valleys and ravines, it was possible to observe oil-soaked sandy layers of the productive strata. Prior to the seismic work, it was controversial whether the Babazanan structure was adjacent to or separate from the Durovdagh site. As a result of seismic works carried out in 1958, Babazanan and Durovdagh were marked as two structures. Productive strata and modern sediments were identified through deep wells drilled in the Babazanan anticline. During the test, oil and oil traces were found in the horizons of the productive stratum. The thickness of the productive strata is 3,000 m and there are 20 horizons at the intersection. During 1950-1991, a total of 50 exploration wells were drilled in the field. Some of these wells have opened up industrial horizons. The most important is the result obtained during the testing of well No. 40, located in the north-western wing of the fold. 35 tons of oil was extracted daily from a depth of 2,936-2,943 m. Although it is possible to obtain oil flow from individual wells, no oil and gas reserves have been assessed in any category in the field and the field has not been involved in industrial development.
The field is exploited by Neftechala Operating Company. It should be noted that Neftechala Operating Company Ltd operates the field in accordance with the Agreement signed between SOCAR, Neftechala Investments Limited and SOCAR Oil Affiliate on the Rehabilitation, Development and Production Sharing of the Block, including the Neftchala, Khylly and Durovdagh-Babazanan oil fields, and the south-western wing of the Mughan monocline in the Republic of Azerbaijan. The agreement entered into force on the 5th of October 2009. At present, oil and gas operations are carried out in the Neftchala and Khylly fields. The contract area covering 2,707.7 km2 is located in the Neftchala and Salyan districts.