S'abonner

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:

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.

  • Populaires ​
Masdar and Iberdrola invest €5.2bn in UK offshore wind
Turkey plans to start gas supplies to Syria soon, says energy minister
Rio Tinto: five strategic priorities to close a 40% valuation discount
LNG Canada launch has no immediate effect on gas prices
Uzbekistan seals deal with Hungary for nuclear cooling technology
CNOOC Limited achieves major breakthrough in offshore exploration in the Beibu Gulf
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies in Mozambique: $4.7 bn US loan challenged in court by NGO
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.
U.S. Midstream: Gas pipeline projects shift focus to West and Northeast
Investors are closely watching U.S. midstream companies’ announcements regarding new gas pipeline expansions targeting promising markets in the West and Northeast, beyond traditional regions in Texas and the Southeast.
PPL Corporation and Blackstone Infrastructure launch gas partnership to power data centers in Pennsylvania
PPL Corporation and Blackstone Infrastructure announce a strategic partnership to develop new gas-fired power plants to supply electricity to data centers through long-term contracts in Pennsylvania.
Falcon Oil & Gas sets initial production record at Beetaloo site in Australia
Falcon Oil & Gas Ltd announces a new record initial flow test result at the Shenandoah S2-2H ST1 well and the start of its 2025 drilling campaign in the Beetaloo Basin.
Azule Energy announces major offshore gas discovery in the Angolan Congo Basin
The Azule Energy consortium has identified a significant gas and condensate field during Angola’s first exploration drilling dedicated to gas, marking a milestone for the country's energy sector.
Technip Energies signs major contract for floating natural gas unit in Africa
Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
Slovakia targets European agreement on end of Russian gas and sanctions by Tuesday
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital acquires Middletown Energy to meet growing energy needs
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
Horizon Petroleum prepares its first gas drilling in Poland for August 2025
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
EU imposes secrecy on national strategies for Russian gas phase-out
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies joins PJM Interconnection, the largest power grid in the United States
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
China Reaches Record Energy Demand Without Boosting LNG Purchases
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production to hit historic high in 2025
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz Launches New Gas Well Despite Declining Production
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI Seal $1.35 Billion Contract in Algeria
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy launches strategic RFP for US gas project
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS secures USD 2 billion to finance its flagship Vaca Muerta project
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
Argentina forecasts 180 Mmcd to become regional supplier and major LNG exporter
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d’Ivoire and Eni strengthen their energy partnership with the Baleine project
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING