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.