WASHINGTON, U.S., March 12. The State Oil
Company of Azerbaijan (SOCAR) is actively exploring the country’s
geothermal energy potential in partnership with U.S. companies,
SOCAR Vice President Afghan Isayev told Trend in an exclusive
interview.
Speaking on the sidelines of the U.S.–Azerbaijan Trade and
Business Conference, held to mark the 30th anniversary of the
U.S.-Azerbaijan Chamber of Commerce (USACC) in Washington, Isayev
highlighted SOCAR’s long-standing collaboration with U.S. energy
firms.
“The foundation of this collaboration was laid in 1994 with the
signing of the Contract of the Century, which established
Azerbaijan’s new oil strategy. This landmark agreement was pivotal
in integrating the country’s oil and gas sector into global energy
markets and set the stage for long-term partnerships between SOCAR
and U.S. companies.
Initially, this cooperation focused mainly on upstream
activities, particularly exploration and production. Over time,
however, it has expanded considerably, encompassing multiple
segments of the oil and gas value chain,” Isayev said.
He recalled that when the Contract of the Century was signed,
ExxonMobil was among the first U.S. companies to partner with
SOCAR.
“Working with ExxonMobil has been crucial for adopting
international best practices in oil and gas production and
fostering mutual knowledge exchange. This partnership remains
strong today. In 2024, during my visit to the United States, I
participated in a high-level meeting with ExxonMobil focused on
strategic cooperation in decarbonization.
The discussions centered on expanding collaboration between
SOCAR and ExxonMobil. I also visited a project site to study
ExxonMobil’s carbon capture and storage (CCS) technology firsthand.
During the visit, I received detailed insights into the practical
application of CCS, process management, and its impact on emission
reduction. I would also like to highlight that in 2025, SOCAR and
ExxonMobil signed a memorandum of cooperation,” the SOCAR vice
president said.
Isayev also highlighted SOCAR’s collaboration with U.S.
companies such as SLB and Baker Hughes to apply advanced
technologies across its oil and gas operations.
“At the same time, through partnerships with these companies,
SOCAR is exploring Azerbaijan’s geothermal energy potential to
advance the country’s renewable energy development. Additionally,
SOCAR has partnered with U.S.-based Honeywell to modernize
operations, implement advanced management systems, and drive
digitalization.
SOCAR also works closely with Boston Consulting Group (BCG) on
strategic initiatives supporting decarbonization and long-term
sustainability in oil and gas operations. As part of this
collaboration, we launched the ‘C&S Lighthouse’ project to
advance green transformation efforts. Its implementation has made a
significant contribution toward achieving SOCAR’s decarbonization
targets,” he said.
According to Isayev, the overall partnership between SOCAR and
U.S. companies has played a key role in modernizing Azerbaijan’s
energy sector, promoting the adoption of advanced technologies and
engineering solutions, and driving digitalization and
decarbonization initiatives.
SOCAR’s Decarbonization Targets
SOCAR Vice President Afghan Isayev noted that rising methane
emissions, driven by rapid industry growth, have become a major
global concern.
“To address this challenge, countries, international companies,
institutions, and civil society worldwide are taking serious,
coordinated steps. In response to these global calls, SOCAR is
implementing targeted measures to reduce methane emissions across
all its operations.
The company has made the reduction of greenhouse gas emissions a
key priority in every region where it operates and announced its
medium- and long-term decarbonization targets during COP28,” he
said.
SOCAR’s targets include:
• Achieving zero routine flaring across all operations by
2030;
• Reducing emissions intensity in the upstream segment by 30% by
2030 compared with 2022 levels (for SOCAR’s direct assets);
• Cutting corporate emissions intensity by 30% and total
emissions by 20% by 2035 compared with 2022 levels (for SOCAR’s
direct assets);
• Achieving near-zero methane emissions in the upstream segment
(below 0.2%) by 2035 (for SOCAR’s direct assets);
• Reaching net-zero emissions by 2050.
SOCAR’s Decarbonization Projects
According to Afghan Isayev, SOCAR has launched a comprehensive
decarbonization program across its key operational regions to
reduce greenhouse gas emissions.
“Under this program, corporate procedures, management tools, and
specialized organizational units have been established to drive
decarbonization and explore new business directions. In line with
its decarbonization targets, SOCAR has made the continuous
reduction of emissions a core objective. Decarbonization projects
are being implemented across SOCAR’s upstream, midstream, and
downstream operations.
With a particular focus on methane reduction, SOCAR has carried
out a large-scale Leak Detection and Repair (LDAR) project at the
Oil Rocks. The project identified previously unaccounted emission
sources, quantified the volumes released, and implemented measures
to prevent further emissions. Measurements were conducted using
Optical Gas Imaging (OGI) cameras, high-flow sampling devices, as
well as satellite and drone technologies. The assessments covered
all major facilities, including pipelines, wells, compressors,
turbines, engines, tanks, and separators,” he added.
Afghan Isayev noted that conducting emission inventories using
modern technologies reflects SOCAR’s targeted and responsible
efforts to achieve its decarbonization goals, as well as its
contribution to transparent reporting initiatives in this area.
“As part of this ongoing process, extensive measurement
campaigns are being conducted across SOCAR’s other assets to detect
and prevent methane emissions. In 2025, in partnership with an
international consulting firm, SOCAR launched the AI-based ‘Methane
AI’ platform to more effectively manage methane emissions.
The platform supports compliance with the reporting requirements
of the OGMP 2.0 initiative, as well as other international
programs. Key benefits of the Methane AI platform include:
• centralized advanced monitoring, reporting, and emissions
reduction capabilities;
• rapid mitigation of identified emission sources through the
platform;
• integration of emissions data from satellites, drones, and
other sources into a single system;
• more accurate analysis of emissions data with minimal human
intervention;
• ensuring compliance with OGMP 2.0 and other international
reporting standards.
Using this platform, SOCAR prepared and submitted its first OGMP
2.0-aligned report in 2025 in accordance with international
standards. The platform has significantly contributed to
establishing a unified and reliable digital approach for managing
methane emissions,” the vice president said.
Afghan Isayev added that, given the global climate agenda’s
emphasis on accountability and transparency, the systematic and
accurate management of emissions is of critical importance.
“To this end, SOCAR has established an advanced Measurement,
Reporting, and Verification (MRV) system to enable effective
collection and digital management of emissions data. The system
minimizes human error, reduces workload, ensures precise tracking
of key performance indicators, and allows for more accurate
reporting in line with international standards. The MRV system has
been made fully operational, and in 2025, internal training
sessio8ns were conducted for MRV users to ensure its effective
implementation,” he said.
Afghan Isayev said that one of SOCAR’s key achievements in
improving emissions detection has been the use of innovative
technologies such as satellites and drones.
“The application of these technologies significantly contributes
to the rapid identification of methane emissions, precise source
determination, and timely mitigation. In this regard, under the Oil
and Gas Climate Initiative (OGCI) partnership, SOCAR conducted
satellite-based emissions measurements across its onshore
operations using technologies from GHGSat.
Additionally, in 2024, in cooperation with TotalEnergies, SOCAR
implemented drone-based measurements using the Airborne Ultralight
Spectrometer for Environmental Applications (AUSEA) technology. The
AUSEA system consists of compact dual sensors mounted on drones
capable of detecting methane emissions and pinpointing their
sources. This technology allows measurements in hard-to-access
emission sources and delivers highly accurate results.
Research using these innovative methods continued at
TotalEnergies’ offshore Caspian operations as well as SOCAR’s
production sites. This integrated and advanced approach has enabled
SOCAR to effectively inventory emissions, measure volumes more
precisely, identify key gaps, and implement mitigation measures,”
he added.
Afghan Isayev said SOCAR collaborates closely with a number of
international initiatives to achieve its decarbonization targets
and proactively align with global regulatory requirements on
greenhouse gas emissions.
“These include the Oil & Gas Methane Partnership (OGMP 2.0), the
Oil & Gas Decarbonization Charter (OGDC), the International
Association of Oil & Gas Producers (IOGP), the World Bank’s ‘Zero
Routine Flaring by 2030’ initiative, and the Caspian Methane
Emissions Accelerator. These partnerships not only strengthen
SOCAR’s role in sustainable development, energy transition, and
decarbonization globally, but also facilitate the formation of
joint positions with international oil and gas companies across
various platforms.
The main goal of all these projects is to accelerate
decarbonization in SOCAR’s oil and gas operations, develop
low-carbon projects, reduce emissions, and ultimately achieve the
company’s decarbonization targets,” he emphasized.
SOCAR advances low-carbon business through renewable
energy projects
Afghan Isayev said that one of the key activities supporting
decarbonization in SOCAR’s oil and gas operations is the
development of renewable energy sources.
“To accelerate the implementation of low-carbon initiatives,
SOCAR established its specialized subsidiary, SOCAR Green LLC,
which focuses on developing renewable energy projects, improving
energy efficiency, and implementing green hydrogen initiatives.
Several successful collaborations with international organizations
have already been established, and project implementation in this
area has begun.
Notably, the Bilesuvar Solar Power Plant (SPP), Banke SPP,
Absheron/Qaradağ Wind Power Plant (WPP) developed with Masdar, as
well as the Shafag SPP in partnership with bp are of particular
significance. Additionally, work continues with Chinese companies
on the development of next-generation power capacities,” he
said.
Afghan Isayev noted that construction on the Bilesuvar Solar
Power Plant (SPP) began in October 2025, with commissioning
scheduled for the second quarter of 2027.
“Construction on the Banke SPP is also expected to start
shortly. The Absheron/Garadagh Wind Power Plant (WPP) is currently
in the development phase, with relevant works ongoing. These
projects contribute to Azerbaijan’s goal of increasing the share of
renewable energy in electricity generation to 30% by 2030, while
reducing carbon emissions by nearly 1 million tons, supporting
sustainable development.
For the Shafag SPP, the Final Investment Decision (FID) was made
in the second quarter of 2025, and several key contracts have been
signed. The plant is planned to be commissioned in the second
quarter of 2027,” he added.
Afghan Isayev said that SOCAR’s collaboration with Chinese
companies in the renewable energy sector continues
successfully.
“Projects are being implemented jointly with China Energy
Overseas Investment Co., Ltd and China Datang Overseas. For the
solar power plant project with PowerChina Resources, an
Implementation Agreement has been signed between SOCAR Green LLC,
PowerChina Resources, and the Ministry of Energy of the Republic of
Azerbaijan, along with a Shareholders’ Agreement between SOCAR
Green and PowerChina Resources. Relevant steps are currently
underway.
In addition, memoranda of understanding have been signed with
China Datang and PowerChina Resources, SOCAR Green LLC, and the
Ministry of Energy to develop offshore wind energy projects in
Azerbaijan’s section of the Caspian Sea.
Furthermore, within a collaboration with the State Water
Resources Agency of Azerbaijan, a Letter of Intent has been signed
for a hybrid renewable energy project aimed at decarbonizing water
management facilities. Potential joint investment opportunities
with international partners are also being considered for this
project.
Overall, these ongoing and planned projects contribute
significantly to SOCAR’s low-carbon business portfolio, the
“greening” of its oil and gas operations’ energy supply, and the
achievement of Azerbaijan’s strategic renewable energy targets,”
SOCAR’s vice president said.
