Exxon Mobil and Azeri state energy company SOCAR said on Monday they signed a deal agreeing to explore onshore oil and gas production in Azerbaijan, while BP is…
Exxon Mobil and Azeri state energy company SOCAR said on Monday they signed a deal agreeing to explore onshore oil and gas production in Azerbaijan, while BP is expected to buy into new Azeri offshore fields, according to three sources.
Azerbaijan's production mainly relies on mature oil fields in the Caspian Sea and the country is aiming to maintain its oil output at around 582,000 barrels per day over the next five years with investment from Western energy companies.
At the Baku Energy Week conference, SOCAR and Exxon signed a memorandum of understanding for the exploration, development, and production of unconventional onshore oil reserves in Azerbaijan.
Exxon’s experience in developing unconventional oil could help Azerbaijan boost its onshore output, which currently accounts for just 5% of the country's total oil production, and open a new chapter in its oil industry.
Unconventional oil and gas resources often refer to hydrocarbons trapped in porous rock, requiring specialised extraction technologies such as fracking.
"In the years to come, we'll be able to talk about the potential size of the resource and what the economics might look like," said John Ardill, Exxon vice president of global exploration.
Arzu Javadova, vice president for geology at SOCAR,
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