MOL Group and the State Oil Company of the Republic of Azerbaijan (SOCAR) have agreed on key terms for a potential exploration, development, and production sharing project in the Shamakhi-Gobustan region of central Azerbaijan. The preliminary agreement, signed during the Baku Energy Forum by MOL Group Chairman and CEO Zsolt Hernádi and SOCAR President Rovshan Najaf, outlines a new phase of cooperation between the two companies focused on onshore hydrocarbon development.
This follows a Memorandum of Understanding signed in September 2024, which aimed to explore further joint opportunities in Azerbaijan’s upstream oil sector. The current agreement is a continuation of that dialogue and reflects both parties’ interest in expanding their footprint in the region’s energy development.
As proposed, MOL would act as the operator and hold a 65% stake in the project, while SOCAR would hold the remaining 35%. Final terms are subject to ongoing negotiations and regulatory approvals.
As a host country for a key segment of the BTC pipeline, Georgia ensures the uninterrupted flow of Caspian oil to global markets
“I’m proud to sign this new agreement with SOCAR, reinforcing our commitment to deeper cooperation and future exploration in Azerbaijan,” said Zsolt Hernádi, Chairman and CEO of the MOL Group. “I’m positive that the Shamakhi-Gobustan joint exploration project will not just be a great addition to our international production portfolio but it will be an important piece of the puzzle to securing Central-Europe’s energy supply. We will have the flexibility to decide to sell or to ship the oil produced to MOL Group’s core region to contribute to the security of energy supply.”
“This new agreement builds on the momentum of the earlier cooperation and reflects the parties’ shared commitment to expand their collaboration in Azerbaijan’s upstream sector,” Hernádi continued. “The discussions in relation to this exploration opportunity have progressed constructively, reaffirming MOL Group’s long-term strategic presence in the Caspian region and SOCAR’s role as a reliable partner in the development of Azerbaijan’s hydrocarbon resources.”
MOL Group has been active in Azerbaijan since 2020, following its acquisition of a 9.57% stake in the offshore Azeri-Chirag-Gunashli (ACG) oil field and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline. The BTC pipeline is a critical component of regional energy infrastructure, transporting crude oil from the Caspian Sea through Azerbaijan and Georgia to the Turkish Mediterranean port of Ceyhan.
The Shamakhi-Gobustan joint exploration project will be an important piece of the puzzle to securing Central-Europe’s energy supply
Georgia plays a vital transit role in this system. As a host country for a key segment of the BTC pipeline, Georgia ensures the uninterrupted flow of Caspian oil to global markets, strengthening the country’s strategic importance in Eurasian energy logistics. The BTC pipeline also contributes to the energy security of Central and Eastern Europe by facilitating reliable access to non-Russian oil sources. So far, 15 million barrels of MOL’s crude oil have been transported from the ACG field through the BTC pipeline and cargo ships to MOL Group’s refineries, including Slovnaft’s Bratislava and INA’s Rijeka Refinery.
The new onshore exploration agreement between MOL and SOCAR marks a further step in regional cooperation and highlights the strategic importance of Azerbaijan, Georgia, and the wider South Caucasus in Europe’s energy landscape.
By Team GT
