Hungarian oil and gas company MOL Group and Azerbaijan’s state-owned energy company SOCAR have signed a production sharing agreement (PSA) for the exploration and production of hydrocarbons in the Shamakhi-Gobustan area of Azerbaijan.
This move follows a heads of terms agreement signed on 3 June 2025 during Baku Energy Week, which outlined the key terms for joint exploration in the region.
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Under the PSA, MOL will serve as operator with a 65% interest in the project, while SOCAR will hold the remaining 35%.
The two companies plan to commence seismic surveys in the Shamakhi-Gobustan area in early 2026, with drilling activities expected to follow at a later stage.
This development is part of the ongoing cooperation between MOL Group and SOCAR, building on previous collaborations in Azerbaijan’s energy sector.
MOL Group chairman and CEO Zsolt Hernádi said: “The Shamakhi-Gobustan joint exploration project adds a great opportunity to our international upstream portfolio, and as the operator, we are proud to build on MOL Group’s extensive experience in exploration and production.
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By GlobalData“Strong foundations have already been laid through the offshore ACG project in Azerbaijan, which is an important pillar of our international operations, playing a vital role in central Europe’s energy security and providing us flexibility in crude oil sourcing and refining.
“I am very much looking forward to the next chapter of our cooperation in Azerbaijan with our esteemed partner SOCAR, which will further strengthen our region’s energy supply security.”
MOL entered the Azerbaijani market in 2020 after acquiring a 9.57% stake in the Azeri-Chirag-Gunashli (ACG) oilfield.
It also acquired an effective 8.9% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline, which transports crude oil to the Mediterranean port of Ceyhan.
MOL said it has contributed to the development of the ACG field, building on its experience in reservoir management and production optimisation.
ACG accounted for 14% of MOL’s total production and 25% of its total reserves as of 2024.
The BTC pipeline has facilitated the transport of nearly 18 million barrels of MOL’s crude oil from the ACG field to its refineries in central and eastern Europe.
In September, MOL and its partner O&GD discovered a new oilfield near the village of Galgahévíz, close to Budapest in Hungary.
