What's Happening?
MOL Group and SOCAR have entered into a comprehensive onshore exploration, development, and production sharing agreement in the Shamakhi-Gobustan region of Azerbaijan. This agreement, signed in Baku by
MOL Group Chairman and CEO Zsolt Hernádi and SOCAR President Rovshan Najaf, marks a significant expansion of MOL Group's presence in Azerbaijan. Under the terms of the agreement, MOL Group will operate with a 65% working interest, while SOCAR will hold the remaining 35%. The partnership aims to leverage MOL Group's technical expertise in reservoir management and production optimization to explore the underexplored Shamakhi-Gobustan area. The project is set to begin with seismic acquisition in early 2026, followed by exploration drilling, pending results and regulatory approvals.
Why It's Important?
This agreement is crucial for both MOL Group and SOCAR as it strengthens their strategic partnership in the Caspian region. For MOL Group, it represents an opportunity to expand its international upstream portfolio and reinforce its strategic presence in Azerbaijan, where it already holds significant interests in offshore and export infrastructure assets. For SOCAR, the collaboration supports the continued development of Azerbaijan's hydrocarbon resources, ensuring long-term energy security and portfolio diversification. The partnership also aligns with the European Parliament's recent decision to phase out Russian gas by 2027, positioning Azerbaijan as a key player in filling the gap left by declining Russian gas supplies.
What's Next?
The next steps involve the commencement of seismic acquisition in early 2026, with exploration drilling to follow, subject to results and regulatory approvals. The success of this project could lead to further exploration and development opportunities in the region, potentially increasing Azerbaijan's gas export capabilities. The collaboration may also prompt other international operators to explore similar partnerships with SOCAR, further enhancing Azerbaijan's role in the global energy market.
