MOL, SOCAR agree terms for onshore Shamakhi-Gobustan oil field deal

Hungary’s MOL Hungarian Oil and Gas Plc (MOL Group) and Azerbaijan’s state oil company SOCAR agreed on June 3 on the key terms of a future exploration, development, and production sharing agreement for the onshore Shamakhi-Gobustan oil field, SOCAR said.

Under the agreement, MOL will operate the project with a 65% stake, while SOCAR will hold 35%.

“The signing of this new agreement with SOCAR underlines our commitment to deepening cooperation and further exploration in Azerbaijan. As MOL Group marks its fifth anniversary in the country, the expansion of our strategic partnership reflects excellent collaboration and shared goals,” said MOL Chairman and CEO Zsolt Hernádi.

MOL already holds a 9.57% stake in the Azeri-Chirag-Gunashli development project and 8.9% in the Baku-Tbilisi-Ceyhan pipeline.

Azerbaijan’s president earlier instructed SOCAR to finalize the contract for Shamakhi-Gobustan by early 2026, with key terms being negotiated in the interim.

MOL and SOCAR signed a memorandum of understanding on the Shamakhi-Gobustan block on September 20, 2024. One of Azerbaijan’s oldest oil-bearing blocks, it requires rehabilitation, investment, and new technologies for development.

Hungary, previously reliant on Russian energy supplies, is pursuing a policy of diversification and views Azerbaijan as a reliable partner with transparent deal terms.

N.Tebrizli