The Chakhnaglar field is located 9 km north of Baku, in the Binagadi oil and gas region between the Binagadi and Sulutepe fields. 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. The Binagadi field with over 100-year- and the Girmaki, Chakhnaglar, Sulutepe, Masazir, Shabandag and Fatmayi (Sianshor and Mahammadli) fields 40-90 year- operation history, are located here. 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 productive strata in the area range from a few metres above the ground to 2,000 m.
Exploration work on the Chakhnaglar field began in 1925, and in 1932 the field was included in industrial development. The productive layer with a total depth of 1,180 m in the field consists of alternating layers of clay and sand. The depth of the productive layer varies from 470 to 1,280 m.
Since 1951, water pumping process has been carried out in the field to maintain layer pressure. From the beginning of operation until the 1st of January 2024, 567 wells of various purposes were drilled in the field and 8.017 million tons of oil and 698 million m3 of gas were extracted. The maximum oil production in the field was recorded in 1940 with 1.252 million tons. At present, the field has 68 wells, of which 40 are operational.
The field is operated by Binagadi Oil Operating Company in accordance with an 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 Binagadi, Girmaki, Sulutepe, Chakhnaglar, Masazir, Fatmayi, Shabandagh and Sianshor oil fields, which entered into force on the 1st of September 2005.