61 fields are targeted for commercial development. Most of the contracts are offshore. Production from the project could reach around 35 million tons per year within 10 years. Due to the projected increase in production in the near future, there is a potential emerging market for oilfield equipment and supplies, as well as pipelines, and related services for transportation solutions either through subcontracting or in cooperation with major suppliers to the various consortia. Currently refineries operate with about half capacity due to decline in the oil production.
Refineries operate only with locally produced oil.
The pipeline transportation development strategy is that the building of new oil pipelines should insure stability and sufficient volumes to the Baku refineries and shipment of the Azeri crude to foreign markets, as well as provide transit services to foreign companies shipping their crude through Azerbaijan s territory. The Northern pipeline is capable of transporting 103,000 barrels of oil per day. The pipeline is currently non-operational as it passes through the conflict area in Chechnya. The Russian government is building a bypass route around the conflict area in order to restart operations of the pipeline. The Western pipeline is of the same capacity 103,000 barrels per day.