Azerbaijan's SOCAR boosts gas production, cuts back on frilling in Q2 2025

The State Oil Company of Azerbaijan (SOCAR) has reported its production results for the second quarter of 2025, indicating a rise in gas output and a decline in oil production and drilling activity.

According to SOCAR's info shared with Caliber.Az, gas production at fields operated independently or where the company is the main shareholder, totalled 1.97 billion cubic meters during the second quarter—an increase of 8.5% compared to the same period last year.

Countrywide, Azerbaijan's overall gas production reached 12.692 billion cubic meters in the second quarter, representing a 1.4% increase year-on-year.

SOCAR's report also detailed export and domestic consumption figures: natural gas exports amounted to 6.166 billion cubic meters, down 0.7% from the same quarter in 2024, while domestic gas consumption rose by 6%, totalling 2.4 billion cubic meters.

Oil production, however, declined. SOCAR extracted 1.769 million tons of oil in the second quarter, a 5.7% decrease year-on-year. Total crude oil production across the country stood at 6.8 million tons, down 4.9% from the same period in 2024.

Despite the decline in production, SOCAR slightly increased its oil exports. The company exported around 4.2 million tons of oil to international markets, a marginal rise of 0.1% compared to the second quarter of last year. This figure includes oil produced by SOCAR, as well as the Azerbaijani state’s and SOCAR’s profit share from production by international consortia operating in the country.

Drilling activity also slowed in the second quarter. SOCAR carried out drilling operations totalling 17,898 thousand meters, marking a 17.1% decline compared to the same period last year.

In terms of processing volumes, SOCAR refined over 1.544 million tons of crude oil, just 0.2% less than in the second quarter of 2024. However, gas processing volumes fell more sharply, with 766.399 million cubic meters of gas processed, a drop of 11.1%.

Exports of petroleum products, petrochemical and gas chemical goods produced at SOCAR’s facilities in Azerbaijan amounted to approximately 570 thousand tons in the second quarter, representing a 13.5% decrease year-on-year.

By Tamilla Hasanova