MOL Group and the State Oil Company of the Republic of Azerbaijan (SOCAR) have signed key terms for an exploration, development, and production sharing agreement covering a new onshore area in the Shamakhi-Gobustan region of Azerbaijan.

The agreement, signed by MOL group chairman and CEO Zsolt Hernádi and SOCAR President Rovshan Najaf during the Baku Energy Forum, marks a significant step forward in the strategic partnership between the two companies. It follows a memorandum of understanding signed in September 2023, which aimed to explore further cooperation opportunities in hydrocarbon exploration in Azerbaijan.

Zsolt Hernádi commented:
“I’m proud to sign this new agreement with SOCAR, reinforcing our commitment to deeper cooperation and future exploration in Azerbaijan. As MOL Group celebrates its fifth anniversary in the country this year, this step demonstrates the strength of our collaboration and shared ambitions. The agreement also reflects the strengthening economic ties between Azerbaijan and Hungary, backed by strong governmental relations.

Our offshore ACG project is already a cornerstone of our international operations, contributing significantly to Central Europe’s energy security and refining flexibility. I’m confident that the Shamakhi-Gobustan exploration project will further enhance our international production portfolio and support the security of supply for the region. It offers the flexibility to either sell the produced oil or transport it directly to MOL Group’s core region.”

Under the terms of the agreement, MOL Group would serve as the project operator with a 65 percent stake, while SOCAR would hold the remaining 35 percent. Finalisation of a fully-termed agreement is subject to further negotiations and regulatory approvals.

This development builds on MOL’s growing presence in Azerbaijan. The company entered the country in 2020 with the acquisition of a 9.57 percent stake in the Azeri-Chirag-Gunashli oil field and an effective 8.9 percent stake in the Baku-Tbilisi-Ceyhan  pipeline. As of 2024, these assets represent 14 percent of MOL’s total production and 25 percent of its total reserves.

Despite holding a minority interest in ACG, MOL actively contributes to the field’s development by applying its eight decades of reservoir management and production optimisation expertise. The BTC pipeline continues to play a vital role in transporting crude to MOL Group’s refineries in Central and Eastern Europe. To date, approximately 15 million barrels of MOL’s crude oil have been delivered from ACG to the group’s refineries, including Slovnaft in Bratislava and INA’s Rijeka facility.