SUBSCRIBE
PROFILE

ExxonMobil commits to unconventional resource development in Azerbaijan

ExxonMobil has signed a memorandum of understanding with state-owned Socar to explore unconventional oil and gas resources in central Azerbaijan, strengthening its long-standing presence in the Caspian Sea region.

Share:

Gain full professional access to energynews.pro from 4.90£/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90£/month*

No commitment – cancel anytime, activation in 2 minutes.

START NOW — 4.90£/month

*Special launch offer: 1st month at the indicated price, then 14.90 £/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99£/year*

To access all of energynews.pro without any limits

SUBSCRIBE — 99£/year

*Introductory annual price for year one, automatically renewed at 149.00 £/year from the second year.

Sign up for free to unlock this article

ExxonMobil Corporation has announced the signing of a memorandum of understanding with the State Oil Company of the Azerbaijan Republic (Socar) to develop unconventional oil and gas resources in an onshore region of the country. The agreement focuses on the Ganja-Yevlakh-Aghjabadi area, located in central Azerbaijan, where both partners aim to unlock what the US major describes as “potential prolific value”.

The signing follows a meeting in Baku between John Ardill, ExxonMobil Vice President for Exploration and Production, and Azerbaijani President Ilham Aliyev. This collaboration builds on ExxonMobil’s long-standing engagement in the country’s energy sector, where it already holds stakes in the offshore ACG (Azeri-Chirag-Gunashli) fields and the Baku-Tbilisi-Ceyhan crude oil pipeline.

A region with a long history of development

Socar is the main operator of Azerbaijan’s onshore oil production, with some fields dating back to the 19th century. In recent years, the state company has committed to identifying and exploiting unconventional deposits within its territory. A geological study conducted by Socar in 2021 indicated that exploration had taken place in the Yevlakh-Aghjabadi depression for over 90 years, revealing complex geological structures in Meso-Cenozoic sediments.

ExxonMobil stated that this memorandum marks a significant first step in the collaboration between the two companies. “We look forward to bringing to this partnership our leading-edge technology and execution capability in unconventional resource development,” a spokesperson for the company told Platts, a publication of S&P Global Commodity Insights.

Regional energy context

Azerbaijan remains a strategic supplier of crude oil and natural gas to European markets. The Azeri Light crude grade, produced mainly at the ACG offshore complex operated by British Petroleum (BP), is valued for its ability to yield middle distillates such as jet fuel, gasoline, and diesel. It was recently assessed at a premium of $1.60/barrel to Dated Brent, according to the latest evaluations by Platts.

In the natural gas segment, the offshore Shah Deniz field, also operated by BP, is a major supply source for the Southern Gas Corridor to Europe. In addition to its oil project commitments, ExxonMobil also holds interests in the country’s strategic export infrastructure.

  • Popular on energynews.pro
Renaissance Dam could generate $1bn annual revenues for Ethiopia
ScottishPower halts green hydrogen projects despite public funding
Colombia: Petro blocks coal to Israel in a political showdown
Egypt commits $343mn to new gas drilling to support supply
Political crisis in France: energy roadmap threatened by new delay
NextDecade signs 20-year LNG deal with EQT for 1.5 MTPA from Train 5
NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.
Sawgrass LNG extends supply contract with Barbados until 2030
Sawgrass LNG & Power has renewed its liquefied natural gas supply agreement with state-owned BNECL, consolidating a commercial cooperation that began in 2016.
Gazprom and CNPC seal binding agreement for the Power of Siberia 2 project
Gazprom and China National Petroleum Corporation have signed a binding memorandum to build the Power of Siberia 2 pipeline, set to deliver 50 bcm of Russian gas per year to China via Mongolia.
Permex Petroleum secures option to acquire 50 wells to power Bitcoin mining
Permex Petroleum signed a $3 million purchase option on oil and gas assets in Texas to support a strategy combining energy production and Bitcoin mining.
Enbridge deploys two new gas projects for 2.8 Bcf/d in the United States
Enbridge announces the implementation of two major natural gas transmission projects aimed at strengthening regional supply and supporting the LNG market.
Commonwealth LNG secures final non-FTA export authorization
Commonwealth LNG’s Louisiana liquefied natural gas project clears a decisive regulatory step with final approval from the U.S. Department of Energy for exports to non-free trade agreement countries.
Indonesia secures supply of 10 LNG cargoes for September
The Indonesian government confirmed the delivery of nine to ten liquefied natural gas cargoes for domestic demand in September, without affecting long-term export commitments.
Hungary receives over 5 bn m³ of Russian gas via TurkStream in 2024
Hungary has imported over 5 billion cubic metres of Russian natural gas since January via TurkStream, under its long-term agreements with Gazprom, thereby supporting its national energy infrastructure.
United States clears Rio Grande and Commonwealth LNG toward final decisions
U.S. regulators have approved two major milestones for Rio Grande LNG and Commonwealth LNG, clarifying their investment decision timelines and reinforcing the country’s role in expanding global liquefaction capacity.
Hokkaido Gas readies 2027: LNG tender and volumes
Hokkaido Gas is adjusting its liquefied natural gas procurement strategy with a multi-year tender and a long-term agreement, leveraging Ishikari’s capacity and price references used in the Asian market. —
KOGAS signs 3.3 mtpa of US LNG for ten years starting in 2028
Korea Gas Corporation commits to 3.3 mtpa of US LNG from 2028 for ten years, complementing new contracts to cover expired volumes and diversify supply sources and price indexation.
Bangladesh finalises memorandum with Aramco for LNG supply deals
Petrobangla plans to sign a memorandum with Saudi Aramco to secure liquefied natural gas deliveries under a formal agreement, following a similar deal recently concluded with the Sultanate of Oman.
CTCI wins TWD29.6bn contract for LNG regasification unit at Kaohsiung
CTCI strengthens its position in Taiwan with a new EPC contract for a regasification unit at the Kaohsiung LNG terminal, with a capacity of 1,600 tonnes per hour.
Exxon expects 20% increase in global natural gas demand by 2050
Exxon Mobil forecasts sustained growth in global natural gas demand by 2050, driven by industrial use and rising energy needs in developing economies.
Capstone secures 5.8 MW order in Mexico with major food manufacturer
Capstone Green Energy received a 5.8-megawatt order for its natural gas microturbines, to be deployed across multiple food production facilities in Mexico through regional distributor DTC Machinery.
Harvest Midstream acquires MPLX gas assets in western US for $1bn
Private firm Harvest Midstream has signed a $1 billion acquisition deal with MPLX for gas processing and transport infrastructure across three western US states.
Sempra Infrastructure and EQT sign 20-year deal for Texan LNG supply
Sempra Infrastructure and EQT Corporation have signed a 20-year liquefied natural gas purchase agreement, consolidating Phase 2 of the Port Arthur LNG project in Texas and strengthening the United States’ position in the global LNG market.
Subsea7 secures offshore contract up to $1.25bn with TP-OTC in the Black Sea
Subsea7 was selected to lead phase 3 of the Sakarya gas field, a strategic contract for Türkiye’s energy supply valued between $750mn and $1.25bn.
Japan challenges China’s installation of 21 gas platforms in the East China Sea
Tokyo protests against Chinese installations deemed unilateral in a disputed maritime zone, despite a bilateral agreement stalled since 2010.
Bp awards Baker Hughes a 90-month contract for Tangguh LNG in Indonesia
Bp has awarded Baker Hughes a long-term service agreement for the Tangguh liquefied natural gas plant, covering spare parts, maintenance and technical support for its turbomachinery equipment.

Log in to read this article

You'll also have access to a selection of our best content.