Sign in Subscribe
Petroleum

Azerbaijan Set to Sign Multi-Billion Dollar Oil Exploration Contracts in Washington

Strategic Insights

— 1 min read

Azeri President Haydar Aliyev is poised to seal three major oil exploration deals worth around USD5 billion in potential investment during a high-level visit to Washington. The agreements, which will mark the first significant discoveries in Azerbaijan since the end of last year, involve partnerships with top US oil majors Exxon and Mobil, as well as Texan firm Moncrief. The deals are set to unlock the potential of several oil-rich blocks in the Caspian Sea and onshore areas, with estimated reserves ranging from 50 million to 140 million tonnes of crude.

Key Takeaways:

  • Azeri President Haydar Aliyev is scheduled to sign three new oil exploration contracts worth around USD5 billion in Washington this week.
  • The deals involve partnerships with US oil majors Exxon, Mobil, and Texan firm Moncrief, and will be the first significant discoveries in Azerbaijan since 2022.
  • SOCAR estimates the Azeri sector of the Caspian block to contain reserves of around 140 million tonnes of crude, with Exxon holding a 30% stake and SOCAR owning 50%.
  • Mobil will hold a 30% stake in the Southern sector block, with reserves of approximately 110 million tonnes of oil, and SOCAR owning 50% of the shares.
  • SOCAR hopes to sign a third contract with Moncrief worth around USD1 billion for the rehabilitation of on-shore Padar-Kharami blocks, with estimated reserves of 50-100 million tonnes of oil.
  • France's Total has expressed interest in the block awarded to Exxon, alongside SOCAR.
  • The contracts are expected to be signed during Azeri President Haydar Aliyev's visit to Washington this week.

Statistics:

  • Potential investment in the three contracts: around USD5 billion
  • Estimated reserves in the Azeri sector block: 140 million tonnes of crude
  • Estimated reserves in the Southern sector block: 110 million tonnes of oil
  • Potential investment in the third contract with Moncrief: around USD1 billion
  • Estimated reserves in the on-shore Padar-Kharami blocks: 50-100 million tonnes of oil

Sources:

  • Spokesman for state oil firm SOCAR
  • Rafik Abdullayev, adviser to SOCAR's president
  • SOCAR estimate
  • Exxon
  • Mobil
  • France's Total

Read more