Oil and gas operations have been conducted in Zigh and Hovsan oilfields on the south coast of the Absheron Peninsula.
The Hovsan oilfield is located 20 km E of Baku, in the southern part of the Absheron Peninsula. The field was commissioned in 1948. As of January 1, 2011, 73 wells had been drilled in the field and 3.3 million tons of oil was produced.
The Zigh oilfield is located in NE of Baku. The field was commissioned from 1935. As of January 1, 2011, 240 wells had been drilled in the field. By that time 6.3 million tons of oil had been extracted.