ExxonMobil, SOCAR sign Middle Kura deal

ExxonMobil and Azerbaijan’s state oil company SOCAR signed a production‑sharing agreement on September 26, 2026 to work together in the Middle Kura Basin. The agreement establishes a joint venture structure to explore, develop and produce unconventional hydrocarbon resources in this onshore area. It represents a formal commitment by both companies to pursue unconventional oil and gas opportunities within Azerbaijan.

Under the terms of the agreement, the joint venture will focus on unconventional hydrocarbons, a category that typically involves more complex extraction techniques than conventional fields. The deal is framed around a production‑sharing model, aligning the interests of the state and the international partner in the development of the basin’s resources.

ExxonMobil is designated to serve as operator of the Middle Kura Basin project, giving it responsibility for day‑to‑day management and technical execution. This operatorship is subject to approval by Azerbaijan’s legislature, meaning the project structure will undergo a domestic review process before full implementation.

Some reports indicate that participating interests under the production‑sharing agreement will be held 50% by SOCAR and 50% by ExxonMobil. This suggests an arrangement in which both parties share project risk and potential returns on an equal basis, though the key operational role is assigned to ExxonMobil.

The documents formalizing the production‑sharing agreement were exchanged on the sidelines of the 2nd Azerbaijan International Investment Forum on September 26, 2026. The exchange ceremony featured SOCAR President Rovshan Najaf and ExxonMobil Global Unconventional Exploration Manager Keith Simpson as signatories.

Holding the signing alongside the investment forum underlines the agreement’s role within Azerbaijan’s broader efforts to attract and structure international investment in its energy sector. The event setting also provided a platform to present the unconventional‑resource initiative to a wider audience of investors and policymakers.

By targeting unconventional hydrocarbon resources in the Middle Kura Basin, the agreement directs new capital and technical focus to a segment of Azerbaijan’s resource base that differs from its more established projects. The production‑sharing framework provides a mechanism for long‑term collaboration between SOCAR and ExxonMobil in this area.

The combination of local state‑owned participation and international operatorship is consistent with common structures in large upstream projects. In this case, it positions ExxonMobil to apply its unconventional development capabilities within Azerbaijan, while SOCAR retains a significant stake and role in the basin’s potential future production.