ExxonMobil Signs 50% Stake in Azerbaijan's Middle Kura Basin Unconventional Play
XOM sits 45% above its 52-week low of $110.385.
Summary
ExxonMobil and SOCAR signed a production-sharing agreement for unconventional hydrocarbon exploration and development in Azerbaijan's Middle Kura basin, with ExxonMobil holding a 50% stake and serving as operator. The deal is part of a broader $10 billion investment package announced at the Baku forum, which also includes a final investment decision on the Absheron gas field by SOCAR, TotalEnergies, and XRG. For ExxonMobil, this expands its Caspian footprint and adds a new unconventional resource opportunity, though the Middle Kura basin is early-stage and unproven. The Absheron expansion is expected to add about 5 billion cubic meters of gas production within three to four years, reinforcing Azerbaijan's role as a European gas supplier. This follows ExxonMobil's strong Q2 earnings and its existing Caspian presence, but the financial impact of the new PSA is not yet quantified.
At the time of this announcement, XOM was trading at $160.60 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $660.3B. The 52-week trading range was $110.39 to $176.41. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.