SOCAR (State Oil Company of Azerbaijan Republic) and UK oil major BP have signed a memorandum of understanding (MoU) to explore potential collaboration opportunities in international oil and gas upstream projects. The partnership, focused on bolstering global energy security, underscores the companies' commitment to a reliable and sustainable energy supply.

The MoU will see SOCAR and BP evaluating joint synergies in the exploration and production of hydrocarbons internationally, along with identifying new investment opportunities. As stated in the memorandum, both companies are committed to sharing their expertise and knowledge to ensure that the world has access to dependable and affordable energy supplies.

Regarding the new agreement, Rovshan Najaf, President of SOCAR, highlighted its significance by linking it to Azerbaijan's historical achievements in the energy sector. "This agreement, coinciding with the 30th anniversary of the 'Contract of the Century,' marks a new chapter in our long-standing partnership with BP. Signed under the guidance and initiative of our national leader, Heydar Aliyev, the 'Contract of the Century' established Azerbaijan as a key player in the global energy markets. Following the strategy set by our great leader, we are now exploring new opportunities to ensure future secure and sustainable energy supplies through joint efforts," Najaf said.

The BP–SOCAR partnership has a long history, particularly in exploring and developing Azerbaijan’s vast oil and gas resources in the Caspian Sea. Gary Jones, BP’s regional president for Azerbaijan, Georgia, and Turkey, remarked on the importance of continuing this collaboration: "Today we are laying the foundation for a new era of cooperation with SOCAR. For 30 years, we have worked together to successfully develop Azerbaijan’s oil and gas resources, securing its role as a reliable energy supplier both regionally and globally. Now it’s time to seek new areas of collaboration and explore opportunities to begin new partnerships both regionally and globally. We believe we can achieve more together. We are thrilled to start this new chapter, joining forces with SOCAR to meet the world’s current energy needs."

The collaboration does not stop there. In a second major announcement, SOCAR and BP signed another MoU outlining BP’s interest in joining exploration and production agreements in two key offshore blocks within Azerbaijan’s sector of the Caspian Sea: the "Karabakh" oil field and the Ashrafi-Dan Ulduzu-Aypara (ADUA) field. The Karabakh field, located 120 km east of Baku, has been under SOCAR's full control since 2018. The ADUA block, which includes discovered and prospective fields, lies 90-110 km northeast of Baku.

Najaf expressed his satisfaction with BP’s involvement in these projects, noting the strong ties between the two companies. "We are delighted to sign this memorandum, which will further strengthen the strategic partnership between SOCAR and BP in the energy sector. The 'Contract of the Century,' signed 30 years ago at the initiative of our national leader, laid the foundation for our country's historic achievements in the energy sector. Today, in line with our late leader's energy strategy, we continue to expand our partnership in the Caspian Sea, ensuring sustainable development through the application of innovative technologies," said Najaf.

BP’s Jones also emphasized the significance of BP’s participation in these projects. "We see this as another great opportunity to work together, building on our long and successful 30-year partnership with SOCAR. We believe our involvement in the exploration and development of the Karabakh and ADUA blocks could accelerate the progress of these projects through possible synergies. Our joint efforts will leverage BP’s global expertise, technical and commercial knowledge, advanced technologies, and financial resources to ensure the successful development of these blocks. We are confident that, with SOCAR’s support, this significant business opportunity will come to fruition," Jones added.

In a third announcement, SOCAR and BP, alongside other international partners including MOL, INPEX, Equinor, ExxonMobil, TPAO, ITOCHU, and ONGC Videsh, also signed a new addendum to the production sharing agreement (PSA) for the Azeri-Chirag-Gunashli (ACG) fields in the Caspian Sea. The agreement focuses on the exploration and development of ACG’s significant free gas reserves, which are estimated to be as much as 4 trillion cubic feet. Najaf hailed this as a new strategic milestone for SOCAR: "The signing of this gas agreement on the anniversary of the 'Contract of the Century' marks a new strategic phase for SOCAR. It will not only contribute to the energy security of our partners but also strengthen Azerbaijan’s position as a reliable energy supplier to Europe."

BP’s Gordon Birrell, Executive Vice President for Production and Operations, shared his optimism: "We are thrilled to begin this free gas project because we see great potential in the development of ACG's free gas reserves. This is truly a historic day for ACG. On its 30th anniversary, ACG is not only celebrating its spectacular oil achievements but also embarking on a new path with a gas project. This is an important business opportunity, and with SOCAR's support, we are confident in its success."

Birrell further noted that the development of ACG’s free gas would enhance Azerbaijan’s ability to supply Europe with additional energy resources, further solidifying its role as a key energy supplier.