Azerbaijan SOCAR Signs Oil Exploration Deals with Exxon, BP

Azerbaijan's state energy company SOCAR is advancing plans to boost its oil and gas production through new agreements with major Western energy firms Exxon Mobil, BP, and Canada's Gran Tierra Energy. SOCAR and Exxon Mobil signed a memorandum focused on exploring unconventional onshore oil reserves, aiming to increase onshore output which currently makes up only 5% of Azerbaijan's total oil production. Meanwhile, BP is expected to acquire stakes and become the operator in new offshore fields such as Karabakh, and is also investing in renewable projects like the 240 MW Shafag solar plant. Additionally, SOCAR and Gran Tierra Energy agreed to jointly assess a hydrocarbon project in the Guba-Caspian region, with plans to sign a Production Sharing Agreement after feasibility studies. Azerbaijan, with proven oil reserves of 7 billion barrels and natural gas reserves of 1.7 trillion cubic meters, aims to maintain its oil output around 582,000 barrels per day while increasing natural gas exports by 8 billion cubic meters by 2030. These developments reflect Azerbaijan's strategy to sustain and expand energy production despite declining output from mature Caspian Sea fields.