MOL, SOCAR sign upstream deal in Azerbaijan’s Shamakhi-Gobustan area

Core Insights - MOL Group and SOCAR have signed a production sharing agreement (PSA) for hydrocarbon exploration and production in Azerbaijan's Shamakhi-Gobustan area, with MOL holding a 65% interest and SOCAR 35% [1] - The companies plan to start seismic surveys in early 2026, followed by drilling activities, continuing their collaboration in Azerbaijan's energy sector [2] Company Developments - MOL Group's chairman and CEO highlighted the Shamakhi-Gobustan project as a significant addition to its international upstream portfolio, emphasizing the company's experience in exploration and production [3] - MOL has previously established a strong presence in Azerbaijan through its involvement in the offshore ACG project, which is crucial for central Europe's energy security [4] Historical Context - MOL entered the Azerbaijani market in 2020 by acquiring a 9.57% stake in the ACG oilfield and an effective 8.9% interest in the BTC pipeline, which transports crude oil to the Mediterranean [5] - The ACG field accounted for 14% of MOL's total production and 25% of its total reserves as of 2024, demonstrating its importance to the company's operations [5] Operational Impact - The BTC pipeline has enabled the transport of nearly 18 million barrels of MOL's crude oil from the ACG field to refineries in central and eastern Europe, showcasing the logistical capabilities of the company [6]