Energy
SOCAR Signs MOU with ExxonMobil at Baku Energy Week
March 17, 2026
4
Min
Azerbaijan's State Oil Company (SOCAR) and US energy major ExxonMobil signed a Memorandum of Understanding this week at Baku Energy Week, committing to a new phase of bilateral cooperation in oil and gas development. The agreement was formalised by SOCAR President Rovshan Najaf and ExxonMobil Vice President John Ardill, marking a significant deepening of a partnership that traces back to the original "Contract of the Century" in 1994.
Baku Energy Week has become one of the most important energy industry forums in the Caspian region, bringing together international majors, national oil companies, financiers, and policymakers. This year's edition coincides with an exceptionally active period for Azerbaijani energy diplomacy: the US-Azerbaijan Strategic Partnership Charter was signed last month, explicitly covering AI, energy infrastructure, and connectivity. SOCAR's new MOU with ExxonMobil must be read against this backdrop — it is both a commercial agreement and a signal of institutional alignment with Washington.
Under the terms of the agreement, SOCAR and ExxonMobil will identify and develop joint opportunities within Azerbaijan's oil and gas sector, with a focus on technological exchange, innovation, and investment in production infrastructure. ExxonMobil's participation in the ACG (Azeri-Chirag-Gunashli) megafield gives it an existing operational footprint in Azerbaijan, making deeper cooperation a logical next step. According to Caliber.Az, the MOU was signed during the forum with broad industry attendance, reinforcing Azerbaijan's role as a key player in global energy markets.
The timing matters. SOCAR is managing a complex strategic transition: maintaining hydrocarbon output from maturing fields while simultaneously building a 6 GW+ renewable energy portfolio, expanding internationally with stakes in Ivory Coast, Israel, and the UAE, and positioning itself as a green energy exporter to Europe. ExxonMobil brings deep-water technology, enhanced recovery expertise, and capital that can accelerate development of newer fields including Umid-2, Absheron, and Babek, projected to deliver significant volumes by the early 2030s. Report.Az noted that US companies were among the first partners in Azerbaijan's major oil and gas projects, reflecting decades of shared commercial history.
For investors, the SOCAR-ExxonMobil MOU is a concrete indicator of sustained US commercial commitment to Azerbaijan's energy sector, independent of political cycles. As SOCAR moves to become a next-generation integrated energy company, partnerships with world-class operators like ExxonMobil are essential for both capital access and technical credibility. The broader energy investment environment in Azerbaijan — buoyed by the US Strategic Partnership Charter, the Southern Gas Corridor's European supply role, and growing renewables capacity — remains one of the most active in the region.
