Exxon Signs Deal to Expand Presence in Azerbaijan

It was recently revealed that Exxon Mobil Corporation (NYSE:XOM) has signed a deal to explore onshore oil and gas production in Azerbaijan. Let’s shed some light on the development.

Exxon Signs Deal to Expand Presence in Azerbaijan

A row of massive oil rigs in a desert landscape, against a setting sun.

Exxon Mobil Corporation (NYSE:XOM) and Azerbaijan’s state energy firm SOCAR signed an MOU on June 2, 2025, to explore onshore oil and gas production in the former Soviet republic. The American energy giant’s experience in developing unconventional oil could help Azerbaijan increase its onshore output – an underdeveloped segment which currently accounts for only 5% of national production.

Exxon Mobil Corporation (NYSE:XOM) already owns stakes in Azerbaijan’s flagship Azeri-Chirag-Gunashli oilfield, and the Baku-Tbilisi-Ceyhan pipeline, which transports Caspian crude to Turkey and onward to Europe. The latest agreement, signed at the Baku Energy Week conference, is of great importance to Azerbaijan, as it will help reduce the country’s reliance on the mature oil fields in the Caspian Sea and allow it to sustain its oil output at around 582,000 barrels per day over the next five years.

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