SOCAR, ONGC, and MRPL seal energy cooperation agreement for joint global expansion

The State Oil Company of Azerbaijan (SOCAR) has taken a significant step in strengthening its energy ties with India by signing a memorandum of cooperation with Mangalore Refinery and Petrochemicals Limited (MRPL) and Oil and Natural Gas Corporation Limited (ONGC).

According to ONGC, cited by local media, the agreement, signed on February 12 during Indian Energy Week, outlines plans for collaboration in key energy sectors, Caliber.Az reports.

These include the supply of crude oil and liquefied natural gas (LNG), petroleum product sales, trade opportunities, and knowledge-sharing initiatives to enhance capacity building.

This strategic partnership is expected to bolster ONGC’s involvement in Azerbaijan’s oil and gas sector, particularly in the development of the Azeri-Chirag-Guneshli (ACG) field and the Baku-Tbilisi-Ceyhan (BTC) pipeline project. The agreement will also expand ONGC and MRPL’s footprint in the global energy market while deepening energy security cooperation between India and Azerbaijan.

ONGC Videsh currently holds a 2.92% stake in the ACG project and a 3.1% stake in the BTC pipeline. MRPL, a subsidiary of ONGC established in 1988, operates as a major refinery in Mangalore.

SOCAR, headquartered in Baku since its founding in 1992, plays a vital role in Azerbaijan’s energy landscape. The company is engaged in all aspects of the oil and gas industry, from exploration and production to refining, transportation, and distribution. Beyond Azerbaijan, SOCAR has expanded its reach through strategic partnerships across Europe, the Middle East, and Asia.

A key asset in SOCAR’s portfolio is the Shah Deniz gas field, one of the world's largest, which supplies natural gas to Europe via the Southern Gas Corridor. Additionally, SOCAR is a key player in the BTC pipeline, ensuring a steady flow of Caspian oil to the Mediterranean, thus contributing to Europe's energy security.

In line with global energy transition efforts, SOCAR has increasingly focused on sustainable energy initiatives. The company has invested in renewable projects, including wind and solar energy, and is exploring green hydrogen development to diversify its energy portfolio.

By Tamilla Hasanova