MOL signs deal to develop gas reserves in Azerbaijan

Hungary’s MOL and its joint venture partners have signed commercial agreements for the development of gas reserves in Azerbaijan, the oil and gas company said late Friday.

MOL is the third-largest shareholder in the Azeri-Chirag-Deepwater Gunashli (ACG) field, after the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP, which operates the JV.

MOL said non-associated gas reservoirs were identified beneath and above the oil-producing reservoirs of the ACG field.

MOL said the commercial agreements amend the existing ACG production-sharing agreement framework, enabling the parties to advance the exploration, appraisal, development, and production from the gas reservoirs of the ACG field. It added that ACG non-associated gas resources are believed to be significant, with up to 4 trillion cubic feet (around 112 billion cubic metres) in place.

Drilling of the initial producing well has already started, with the first gas expected in 2025.

Additionally, MOL Group chairman-CEO Zsolt Hernádi and SOCAR CEO Rovshan Najaf signed a memorandum of understanding in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region.

MOL Group holds a 9.57pc stake in ACG and an 8.9pc stake in the Baku-Tbilisi-Ceyhan pipeline.

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