BAKU, Azerbaijan, September 30. The Azerbaijani Parliament has ratified the agreement signed between the State Oil Company of Azerbaijan (SOCAR), Gran Tierra Energy (Azerbaijan) GmbH, and SOCAR Guba-Caspian LLC, Trend’s correspondent reports from the event.
This matter was submitted for discussion at today's plenary session of the National Assembly.
During the session, it was noted that a Production Sharing Agreement (PSA) regarding exploration, development, and production in the Guba-Caspian area was signed in Baku on February 18, 2026, between SOCAR and Gran Tierra Energy.
The agreement was concluded for the purpose of jointly studying and potentially developing a promising onshore oil and gas area located in Azerbaijan's Guba-Caspian region (covering parts of the Guba, Gusar, Shabran, Siyazan, and Khizi districts).
The primary objective of the agreement is to identify hydrocarbon resources in the area, evaluate prospective structures, and if commercially viable reserves are discovered, organize their development and production. The project will be implemented based on a production sharing model. This model entails organizing geological exploration and production activities within the framework of long-term cooperation between SOCAR and the foreign investor. The initial stage of the geological exploration program under the agreement involves the collection of gravimetric data. Based on the collected data, the geological structure of the area and it will be possible to assess oil and gas prospects more accurately.
The results of the planned geological, gravimetric, seismic, and drilling operations will enable a final assessment regarding the presence and commercial significance of oil and gas reserves in the area. Should commercially viable oil or gas reserves be discovered, the necessary technical and economic grounds will be established to advance the project to the development and production stages.
The submitted bill envisages the adoption and approval of the Agreement, the Government of Azerbaijan’s guarantee, and the 10 addenda to the main text of the Agreement, as well as authorization for their implementation.
Ratification of the Agreement will facilitate a more comprehensive study of Azerbaijan’s onshore oil and gas potential, the application of advanced geological exploration technologies, the attraction of foreign investment, and the development of international cooperation in the country's energy sector.
Following discussions, the draft law "On the adoption, approval, and authorization of the implementation of the Agreement on the exploration, development, and production sharing for the territory covering parts of the Guba, Gusar, Shabran, Siyazan, and Khizi districts of Azerbaijan (Guba-Caspian)", concluded between the State Oil Company of the Republic of Azerbaijan, Gran Tierra Energy (Azerbaijan) GmbH, and SOCAR Quba-Caspian LLC, was put to a vote and adopted in a single reading.
