At 28 years old, he was given by his father's creditors the technical management of the family business, Fonderies et Ateliers Mécaniques Nobel Fils, a factory making war supplies such as mines and steam engines.

The company had been facing financial difficulties since the end of the Crimean War in 1856 due to a severe cut in the military budget ordered by the new Tsar Alexander II, and eventually, in 1862, Immanuel's firm was sold by his creditors.

He sent his oldest brother, Robert Nobel in 1873 to procure Russian walnut wood in the Caucasus region of southern Russia.

Without consulting his brother, Robert spent the 25,000 rubbles that Ludvig entrusted to him for buying wood – "walnut money" – and instead bought a small refinery in Baku.

Turning his attention to self-propelled tankships, a primary concern was to keep the cargo and fumes well away from the engine room to avoid fires.

Other challenges included allowing for the cargo to expand and contract due to temperature changes, and providing a method to ventilate the tanks.

Near his estate, Villa Petrolea, several houses for the workers were built and a shuttle boat was offered between the city and the harbour.

Ludvig and Robert created a large park, still existent, in the "Black City" section of Baku near Villa Petrolea.