The area covers the Shamakhi-Gobustan regions of Azerbaijan, the Hungarian oil and gas company said on the Budapest Stock Exchange on Tuesday, according to MTI.
MOL and Socar signed an MoU last September to evaluate further potential cooperation opportunities for hydrocarbon exploration in the Shamakhi-Gobustan region.
“I’m positive that the Shamakhi-Gobustan joint exploration project will not just be a great addition to our international production portfolio but it will be an important puzzle to securing Central Europe’s energy supply”, MOL Group Chairman and CEO Zsolt Hernádi said after signing Tuesday’s agreement.
“We will have the flexibility to decide to sell or to ship the oil produced to MOL Group’s core region to contribute to the security of energy supply”, he added.
According to the companies’ intention, MOL would be the operator and 65% shareholder in the project and SOCAR would hold 35%.
The finalization of a fully termed exploration, development, and production sharing agreement will be subject to further negotiations and regulatory approvals.
MOL Group entered Azerbaijan in 2020 by acquiring a 9.57% stake in the Azeri-Chirag-Gunashli (ACG), one of the world’s largest oil fields, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline that transports the crude to the Mediterranean port of Ceyhan. This represents 14% of MOL’s total production and 25pc of total reserves as of 2024.
So far, 15 million barrels of MOL’s crude oil was transported from the ACG field through the BTC pipeline and cargo ships to MOL Group’s refineries, including Slovnaft’s Bratislava and INA’s Rijeka Refinery.
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