MOL Group and its partners have signed commercial agreements to develop gas reserves in Azerbaijan. As the third-largest shareholder in the Azeri-Chirag-Gunashli (ACG) field, following the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP, MOL is poised to advance exploration and production of newly identified gas reservoirs beneath and above the existing oil-producing areas.
These agreements amend the current production-sharing framework for the ACG field, allowing for enhanced exploration and development of gas resources estimated to hold up to 112 billion cubic meters. Drilling of the first production well has commenced from the West Chirag platform, with initial gas volumes expected in 2025. This well will be vital for gathering data to inform future development strategies.
Additionally, MOL Group’s Chairman and CEO, Zsolt Hernadi, and SOCAR’s CEO, Rovshan Najaf, have signed a Memorandum of Understanding (MoU) to explore opportunities in the Shamakhi-Gobustan region. Under this MoU, MOL Group aims to leverage its technical and commercial expertise to support further hydrocarbon extraction in Azerbaijan.
MOL Group entered the Azerbaijani market in 2020 by acquiring a 9.57% stake in the ACG field, one of the world’s largest oil fields, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, which transports crude oil to Turkey’s Mediterranean port of Ceyhan. This stake accounts for 15% of MOL’s total production and 25% of its total reserves as of 2023.
The assets in Azerbaijan enhance MOL’s operational flexibility, enabling the company to choose between selling its oil share from the ACG field at Ceyhan or utilizing it within its Central and Eastern European operations. This strategy not only supports European energy supply security but also optimizes MOL’s crude oil supply chain for its refineries in the region, including Slovnaft in Bratislava and INA’s Rijeka refinery.
