MOL and SOCAR Expand Partnership with New Onshore Oil Exploration Project in Shamakhi-Gobustan

MOL and SOCAR Expand Partnership with New Onshore Oil Exploration Project in Shamakhi-Gobustan

(IN BRIEF) MOL Group and SOCAR have signed key terms for an exploration, development, and production sharing agreement covering Azerbaijan’s Shamakhi-Gobustan regions, reinforcing their strategic energy partnership. MOL is expected to act as operator with a 65% share, while SOCAR holds 35%, pending further negotiations and approvals. This agreement follows a 2024 MoU and builds on MOL’s existing investments in Azerbaijan, including its stake in the ACG field and BTC pipeline. The new onshore venture supports MOL’s long-term strategy to expand its international upstream portfolio and contribute to energy security across Central and Eastern Europe.

(PRESS RELEASE) BUDAPEST, 10-Jun-2025 — /EuropaWire/ — MOL Group has taken a major step in strengthening its collaboration with the State Oil Company of the Republic of Azerbaijan (SOCAR) by signing key terms for a new exploration, development, and production sharing agreement. The agreement, focused on a new onshore area in the Shamakhi-Gobustan regions, marks a significant expansion of MOL’s presence in Azerbaijan and builds on the Memorandum of Understanding signed in September 2024.

The agreement was formally signed during the Baku Energy Forum by MOL Group Chairman and CEO Zsolt Hernádi and SOCAR President Rovshan Najaf. Under the proposed terms, MOL would serve as the operator and hold a 65% ownership stake, while SOCAR would retain a 35% interest. The final agreement remains subject to regulatory approvals and further negotiations.

Zsolt Hernádi emphasized the strategic importance of the partnership: “This new agreement strengthens our long-standing relationship with SOCAR and reflects our shared vision for energy security in the region. As we celebrate our fifth anniversary in Azerbaijan, this step underscores our commitment to expanding operations in the Caspian region and enhancing Central Europe’s energy supply.”

The new joint project aligns with MOL’s broader strategy to diversify and secure its international production portfolio. It also complements MOL’s offshore participation in the giant Azeri-Chirag-Gunashli (ACG) field and its stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline. Since entering Azerbaijan in 2020, MOL has transported 15 million barrels of oil from the ACG field via the BTC pipeline to its refineries in Bratislava and Rijeka, reinforcing its supply chain in Central and Eastern Europe.

Beyond its economic and operational significance, the agreement also highlights the strengthening bilateral relations between Azerbaijan and Hungary, supported by close governmental cooperation. The Shamakhi-Gobustan venture is expected to play a vital role in enhancing energy security for the region while expanding MOL’s footprint in upstream hydrocarbon development.

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SOURCE: MOL Group