Azerbaijan approves state guarantees for Shamakhi-Gobustan energy project With Hungary’s MOL group

The Cabinet of Ministers of Azerbaijan has approved government guarantees and obligations under a Production Sharing Agreement (PSA) for the exploration and production of hydrocarbons in the “Shamakhi-Gobustan” block, developed in partnership with Hungary’s MOL Vector Ltd.

The decision was signed by Prime Minister Ali Asadov. It formalises Azerbaijan’s commitments under the “Agreement on Exploration, Development and Production Sharing” between the State Oil Company of Azerbaijan (SOCAR) and MOL Vector Ltd., Caliber.Az reports via local media. 

“To approve the guarantees and obligations of the Government of Azerbaijan under the ‘Agreement on Exploration, Development and Production Sharing’ between the State Oil Company and MOL Vector Ltd covering the territory comprising parts of the Shamakhi, Gobustan, Absheron, Hajigabul and Agsuin districts,” the document states.

As previously reported, SOCAR and Hungary’s MOL Group signed an agreement on December 17, 2025, to jointly explore and develop hydrocarbons in the Shamakhi-Gobustan block.

Under the deal, MOL Group holds a 65% stake and acts as project operator, while SOCAR retains a 35% share. Seismic exploration is expected to begin in early 2026, with drilling activities planned for later phases.

Officials described the agreement as a significant milestone in expanding strategic energy cooperation between Azerbaijan and Hungary. The two companies had earlier signed a framework agreement during Baku Energy Week.

MOL Group first entered the Azerbaijani energy sector in 2020, acquiring a 9.57% stake in the Azeri-Chirag-Guneshli (ACG) field and an 8.9% effective share in the Baku-Tbilisi-Ceyhan pipeline.

By Sabina Mammadli