Azerbaijan’s SOCAR signs exploration deals with ExxonMobil and BP

BAKU, June 2, 2025 – Azerbaijan’s state energy firm SOCAR has signed new oil and gas exploration agreements with ExxonMobil and BP in Baku, Reuters reported on Monday.

The deals come as Azerbaijan aims to offset declining crude output, which has dropped since the peak production of 1 million bopd at the Azeri–Chirag–Gunashli complex in 2010. The country currently holds proven oil reserves of 7 billion barrels and 1.7 tcm (around 60 tcf) of natural gas, according to the US Department of Energy.

Most of these reserves are located offshore in the Caspian Sea, particularly in the Azeri-Chirag-Gunashli (ACG) fields, which are the country’s largest and most productive oil complex.

While BP declined to comment, its production chief Gordon Birrell previously stated that the company planned to pursue new oilfield exploration in the Azeri Caspian region. BP last year signed an MoU with SOCAR on potentially joining the Karabagh oilfield and the Ashrafi-Dan Ulduzu-Aypara exploration area. ExxonMobil has not responded publicly to the announcement.

The agreements were finalised during an energy conference in Baku, underlining Azerbaijan’s strategic focus on increasing gas exports and attracting international investment to its upstream sector. Azerbaijan plans to increase natural gas exports by a total of 8 bcm (around 280 bcf) by 2030, president Ilham Aliyev said at Monday’s conference.

“SOCAR’s long-term vision is to ensure stable oil and gas production through new partnerships and reserves,” SOCAR vice-president Elshad Nasirov said.

State Oil Company of the Republic of Azerbaijan, commonly known as SOCAR, is the country’s national oil and gas company, responsible for the exploration, production, processing and transport of oil and gas in Azerbaijan. It operates major oil and gas assets in the Caspian Sea, including the ACG oilfields and the Shah Deniz gasfield, and is involved in international trading and pipeline projects across Europe and Asia.

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