The State Oil Company of Azerbaijan Republic (SOCAR) has reportedly signed new agreements with Exxon Mobil and bp for oil and gas exploration in the country.
This collaboration aims to sustain Azerbaijan's oil output, which is projected to remain at approximately 582,000 barrels per day (bpd) or the next five years with the help of Western energy investments.
At the Baku Energy Week conference, the two companies formalized their partnership by signing a memorandum of understanding (MOU), reported Reuters, citing three sources.
ExxonMobil is expected to enhance Azerbaijan's onshore production, which currently represents just 5% of its total oil output.
ExxonMobil also holds stakes in the Azeri-Chirag-Gunashli oil development project and the Baku-Tbilisi-Ceyhan pipeline, which is a key route for Caspian crude to reach Turkey and European markets.
SOCAR is expected to announce the divestment of stakes in the Karabakh and Ashrafi-Dan Ulduzu-Aypara offshore oil and gas fields to bp.
BP is expected to take over as the operator of the Karabakh project. The move follows bp's expression of interest last year through an MOU with SOCAR.
The fields were previously part of a contract with Equinor, which withdrew in 2017 to concentrate on its core assets.
In addition to oil, Azerbaijan is also focusing on expanding its natural gas exports.
President Ilham Aliyev disclosed at the conference that the country aims to boost its natural gas exports by eight billion cubic metres (bcm) by 2030, building on the 25bcm exported in 2024.
BP also announced a final investment decision on the Shafag solar plant project, a 240MW venture in the Jabrayil district of Azerbaijan.
The project, estimated to cost $200m (£147.95m), is a collaboration between bp's solar unit, Lightsource BP, SOCAR, and the Azerbaijan Business Development Fund, with completion targeted for mid-2027.