AZERBAIJAN — MOL Group, along with its joint venture partners, has signed significant commercial agreements for the development of gas reserves in Azerbaijan.
The Hungarian oil and gas company is now the third-largest shareholder in the Azeri-Chirag-Deepwater Gunashli (ACG) field, following the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP.
The ACG field, one of the world’s largest oil fields, has been found to contain substantial non-associated gas (NAG) reservoirs both above and below the oil-producing layers.
These gas resources are estimated to be significant, with up to approximately 112 billion cubic metres in place.
The newly signed agreements amend the existing ACG production sharing agreement (PSA), allowing the partners to proceed with exploration, appraisal, development, and production from the gas reservoirs.
Drilling of the initial production well has already commenced from the West Chirag Platform, with first gas expected in 2025.
In addition to the gas development agreements, MOL Group has signed a Memorandum of Understanding with SOCAR to explore further cooperation opportunities in hydrocarbon exploration in Azerbaijan.
This includes potential exploration in the Shamakhi-Gobustan region, where MOL Group intends to contribute its expertise and resources.
Zsolt Hernádi, Chairman and CEO of MOL Group, highlighted the significance of this development: “Today is an important milestone for MOL Group as after years of developing and producing oil fields in Azerbaijan, we extend our footprint by entering into gas reservoir development.”
The ACG project plays a crucial role in Central European energy security, providing crude oil sourcing flexibility for MOL’s refineries in Slovakia and Croatia.
MOL Group’s involvement in Azerbaijan began in 2020 with the acquisition of a 9.57 per cent stake in the ACG field and an 8.9 per cent stake in the Baku-Tbilisi-Ceyhan pipeline.
This latest agreement not only strengthens MOL Group’s position in Azerbaijan but also enhances economic cooperation between Azerbaijan and Hungary.
As the energy landscape continues to evolve, this partnership is poised to play a significant role in regional energy security and economic development.
