Oil Giants SOCAR and Gazprom Expand Partnership During Putin’s Azerbaijan Visit

The State Oil Company of Azerbaijan (SOCAR), a major player in the global oil and gas industry, is expanding its strategic partnership with Russia’s Gazprom. Gazprom’s Chairman Alexey Miller announced that the agreement includes developments on the “North-South” project and the signing of a comprehensive scientific and technical cooperation program scheduled for September 2024.

The announcement came during Russian Vladimir Putin’s visit to Azerbaijan on August 18. The visit included talks with Azerbaijani President Ilham Aliyev and the signing of several joint documents.

Currently, SOCAR’s official website does not list any information about these agreements with Gazprom. However, Miller emphasized that the partnership is evolving dynamically and covers various aspects of cooperation.

Additionally, it was previously reported that SOCAR will supply diesel fuel worth 529 million hryvnias to Ukraine’s state railways, “Ukrzaliznytsia.” SOCAR’s representation in Ukraine was established in 2008, and the company currently operates 57 gas stations across the country.

In related news, with the current gas transit contract between Ukraine and Gazprom set to expire at the end of 2024, Azerbaijani President Aliyev has confirmed that Azerbaijan is prepared to supply gas to the European Union via Ukraine. This contract, signed in 2019, will not be renewed.

Ukrainian authorities are also considering the possibility of providing gas transit services from Russia to EU countries if requested, particularly Austria and Slovakia, which currently import Russian gas through Ukraine.

Western sanctions imposed in response to Russia’s invasion of Ukraine have been effective in dealing a severe blow to the country’s energy sector. Gazprom, a state-owned energy giant, reported a staggering $6.9 billion loss in 2023 as the sanctions effectively cut off its gas exports to the European market, once a primary revenue source.