Azerbaijan, Hungary to explore for oil in Shamakhi

Azerbaijan’s state oil company SOCAR and Hungary’s MOL Group have signed a production sharing agreement to explore and develop hydrocarbons at the onshore Shamakhi–Gobustan block, SOCAR said.

The agreement was signed by SOCAR President Rovshan Najaf and MOL Group Chairman and CEO Zsolt Hernadi.

Under the deal, MOL Group will act as the project operator with a 65% participating interest, while SOCAR will hold a 35% stake. Seismic exploration is scheduled to begin in early 2026, followed by drilling activities at later stages.

SOCAR said the agreement marks an important milestone in the strategic partnership between the two companies. In July, during Baku Energy Week, the parties also signed a heads of terms agreement.

MOL Group entered Azerbaijan’s market in 2020 after acquiring a 9.57% stake in the Azeri–Chirag–Gunashli oilfield and an effective 8.9% stake in the Baku–Tbilisi–Ceyhan oil pipeline.