The Binagadi field is located in the north-west of the Absheron Peninsula, 9 km north of Baku, in the Binagadi oil and gas region. Like a natural museum, there are periodically active mud volcanoes, (Kechaldagh (Stone Mountain), Zigilpiri, Keyraki, Boyukdagh (Big Mountain), Kichikdagh (Small Mountain), etc.), various stratigraphic strata appeared on the earth surface, mountain ponds, flora and fauna remains widely spread in the Binagadi oil and gas region lying in the north-west of the Absheron Peninsula. The 100-year-old Binagadi field, and the Girmaki, Chakhnaglar, Sulutepe, Masazir, Shabandag, Fatmayi (Sianshor and Mahammadli) fields, which have been in operation for 40-90 years, are located there. At present, these fields are in the final stages of development, and a major part of the remaining recoverable oil reserves (84.2%) have been extracted. Depths of the productive layer in the area range from a few metres above the ground to 2,000 m.
For the first time in 1891, N. Barbot-de Marni and S. Simanovich drew a geological map of the Binagadi oil and gas bearing region at a scale of 1:8400 and gave recommendations for their development. The first well in the Binagadi field was drilled in 1896 by mechanical means (forging) to a depth of 430 m. Oil flow was taken from well No. 4 drilled in the Diatom horizon for the first time in Azerbaijan, and then other horizons of the productive stratum were developed. The Binagadi field has been mainly exploited since 1913. Oil, gas and bitumen outcrops are widespread in the area. There are no gas reservoirs of commercial significance in the field section, but associated gas produced together with oil are recorded during production. 2,231 wells of various purposes were drilled in the field from the beginning of operations to the 1st of January 2024, from which 33.814 million tons of oil and 2.375 billion m3 of gas were extracted. The maximum oil production in the Binagadi field was recorded in 1941 with 817,400 tons. Currently, 322 of 452 production wells on the field are operational.
The field is operated by Binagadi Oil Operating Company in accordance with the Agreement signed on the 29th of September 2004 between SOCAR, Azen Oil Company B.V. and SOCAR Oil Affiliate on the Rehabilitation, Development and Production Sharing of the Block including Binagadi, Girmaki, Sulutepe, Chakhnaglar, Masazir, Fatmayi, Shabandagh and Sianshor oil fields, which entered into force on the 1st of September 2005 (SOCAR Oil Affiliate - 25%, Azen Oil Company B.V 75%).