Azerbaijan, ExxonMobil Ink Pact as Baku Eyes Major Unconventional Oil Find

Azerbaijan is deepening energy ties with the United States after signaling a potential breakthrough in unconventional oil. Economy Minister Mikayil Jabbarov said Baku is “hopeful” about a large unconventional oil discovery being advanced with ExxonMobil, following President Ilham Aliyev’s recent trip to Washington.

At a Cabinet session reviewing the visit, Jabbarov announced a new Memorandum of Cooperation between state oil company SOCAR and ExxonMobil, saying the pact is designed to strengthen upstream collaboration and broader energy-sector links. The memorandum was signed in Washington by Jabbarov and ExxonMobil Vice President John Ardill, witnessed by President Aliyev and U.S. Special Envoy Steve Witkoff, who later held bilateral talks with the Azerbaijani leader.

Jabbarov underscored Azerbaijan’s role in regional and global energy security, noting the country supplies natural gas to ten U.S. allies and now delivers pipeline gas to a total of 14 countries. He added that Azerbaijan has recently begun gas supplies to Syria and said Washington views Baku’s participation in energy projects with U.S. partners—such as Israel and the United Arab Emirates—positively.

Beyond hydrocarbons, the minister highlighted Azerbaijan’s renewables build-out and grid resources as magnets for foreign capital, positioning the country as an emerging hub for data-center infrastructure and artificial intelligence workloads. He framed this as part of a wider strategy to leverage Azerbaijan’s geography as a connector between Central Asia and the South Caucasus for both energy and digital corridors.

While no technical details were released on the unconventional prospect, officials cast the SOCAR–ExxonMobil memorandum as a platform to assess resources, de-risk development, and attract additional investment into Azerbaijan’s upstream portfolio. The government also emphasized that expanding clean energy alongside oil and gas will enhance long-term investment appeal and energy resilience.

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