The Nakhchivan structure is located in the Azerbaijani sector of the Caspian Sea, 90 km south of the Absheron Peninsula. The depth of the sea in the area where the structure is located varies from 120 m to 750 m. The closest distance to the shore is 55 km. The Bulla-Deniz and Bahar fields are located northwest of the structure.
The Nakhchivan structure was discovered in 1960. In 1994, the structure was studied in more detail by the general depth point method of seismic exploration and prepared for exploration drilling. The production sharing agreement on developing the promising offshore Nakhchivan structure was signed on 1 August 1997 between the US company Exxon (50%) and SOCAR (50%). Later, Exxon and Mobil merged, with SOCAR holding 50% and ExxonMobil 50%. The agreement covers an area of 280 km2. In January-April 1998, 3D and two-dimensional (2D) seismic surveys were carried out in the Nakhchivan structure. During 2001-2002, the first exploration well, NAX-1, was drilled in the far northern pericline of the structure. According to the survey results, the well was closed, and the area was abandoned because the required amount of hydrocarbon-saturated objects was not found in the drilled formation. The agreement was terminated on 18 December 2006.
The Nakhchivan structure's resources are estimated at 300 bln m3 of gas and 38-40 MM tons of gas condensate. In January 2020, SOCAR and Lukoil signed a Memorandum of Understanding (MoU) on the Nakhchivan prospective structure in the Azerbaijani sector of the Caspian Sea, as well as the Caspian-Guba and Goshadash exploration blocks in the shallow part of the sea. This memorandum is assessed as expressing the parties' intention to cooperate in these structures. In accordance with the signed memorandum, geological and geophysical data obtained in the field to evaluate the hydrocarbon potential of the field were submitted to Lukoil. Assessment is underway.