New era of Azerbaijan-U.S. energy partnership
Laman Zeynalova
Trend.az
BAKU, Azerbaijan — Energy cooperation between Azerbaijan and the United States has been a key element of bilateral relations for over three decades. American companies played a vital role in the development of Azerbaijan’s modern oil and gas industry after the country regained its independence, and Washington’s political support facilitated the implementation of projects that changed the energy map of Eurasia. Today, this cooperation is entering a qualitatively new phase.
The acquisition of operating oil and gas assets in the U.S. by the Azerbaijani GL Group company marked a historic milestone. For the first time in history, an Azerbaijani group of companies not only acquired oil and gas production assets in the United States but also became their operator. These assets include four fields under development in the Permian Basin near Midland, Texas, comprising more than 200 active production wells.
At first glance, this appears to be a corporate investment deal. However, its significance is much deeper. It reflects a qualitative change in the nature of Azerbaijani-American energy relations and symbolizes a new stage in the partnership between the two countries.
This deal was a mirror image of the events of thirty years earlier.
In the mid-1990s, American companies came to Azerbaijan to participate in the development of Caspian fields and the creation of a modern oil and gas industry in the independent state. Today, the story is moving in the opposite direction: an Azerbaijani company is investing in the U.S. oil and gas industry and assuming responsibility for managing existing production assets in one of the world’s most competitive energy markets.
This transformation clearly demonstrates the path Azerbaijan has taken over three decades—from a country that attracted foreign investment to develop its own resources to a state exporting capital, management expertise, and professional experience.
From “Contract of Century” to new partnership model
The history of energy cooperation between Azerbaijan and the U.S. has always been built on mutual benefit and a long-term strategic vision.
Following the signing of the “Contract of the Century” in 1994, American companies became key participants in the modernization of Azerbaijan’s oil and gas sector. ExxonMobil, Chevron, Baker Hughes, Honeywell, SLB, and many others not only invested but also brought modern technologies, engineering solutions, and international project management standards.
Washington’s political support also played a crucial role in the implementation of key energy projects in the region.
The United States actively supported the construction of the Baku-Tbilisi-Ceyhan oil pipeline, which for the first time ensured the export of Caspian oil to global markets, bypassing traditional routes. Later, the U.S. played a similar role in promoting the Southern Gas Corridor.
The U.S. State Department has repeatedly emphasized that it views the Southern Gas Corridor as one of the most important projects for European energy security.
According to the State Department, the U.S. sees the Southern Gas Corridor as infrastructure of fundamental importance to European energy security.
“The more Azerbaijani gas gets to more parts of Europe, the better as far as we’re concerned. We’ll continue to support these efforts,” the State Department noted.
According to the American side, supply diversification helps reduce Europe’s dependence on monopolistic energy sources, and Azerbaijan today plays a key role in supporting this strategy.
In recent years, the country has significantly expanded its gas export geography. Today, 16 countries receive Azerbaijani natural gas, including Germany and Austria, which joined the list of consumers this year.
Thus, the partnership between Baku and Washington has never been limited solely to commercial interests. It has always been part of the broader energy security architecture of Europe and Eurasia. This is why the acquisition of assets in the U.S. has such great symbolic significance.
For decades, investment flow was predominantly one-way, with American companies investing in the development of Azerbaijan’s oil and gas industry. Now, a new model is emerging. Azerbaijani companies are entering the American market no longer as contractors or minority investors, but as full-fledged production operators.
This transition cannot be explained solely by the successful development of a single company. It demonstrates the maturity of Azerbaijan’s entire oil and gas industry.
Over 30 years, the country has accumulated unique experience in implementing complex international projects, established professional engineering schools, trained highly qualified personnel, and earned a reputation as one of the most reliable energy partners in the world. It is this reputation that today allows This allows Azerbaijani businesses to confidently enter the most developed energy markets.
The choice of region is particularly significant.
Why namely Permian basin?
The Permian basin is considered not only the largest oil-producing region in the U.S., but also one of the main centers of the global oil and gas industry. Its importance is difficult to overstate.
In 2025, approximately 6.6 million barrels of oil per day were produced here, accounting for almost half of all United States oil production and more than eight percent of global oil production. Natural gas production reached 27.6 billion cubic feet per day, equivalent to approximately a quarter of American marketable gas production and almost seven percent of global production.
Working in such a region means meeting the highest international standards. The operator is required to effectively manage hundreds of production wells, implement modern enhanced oil recovery technologies, adhere to strict environmental standards, ensure industrial safety, and demonstrate high economic efficiency.
In fact, GL Group has gained the opportunity to operate in a kind of major league of the global oil and gas industry. This is why this deal goes far beyond corporate success. It is becoming an indicator of trust in the Azerbaijani oil and gas business on the part of one of the world’s most developed energy markets.
It’s also important that the deal came not independently, but amid rapidly strengthening bilateral cooperation. Recent months have perhaps become the most dynamic period in Azerbaijani-American relations in many years.
In February, the Charter of Strategic Partnership was signed, which has the potential to elevate relations to a qualitatively new level. In his congratulatory message to U.S. President Donald Trump, the head of state emphasized that the Charter will give new impetus to cooperation not only in traditional areas—energy, transport connectivity, and security—but also in digital transformation, artificial intelligence, and other high-tech areas.
Namely this political impetus soon received concrete economic expression. The First Azerbaijani-American Economic Dialogue took place as part of the Baku Energy Week, which many experts are already calling one of the most significant events in recent years on the bilateral economic agenda. During the American delegation’s visit, commercial agreements worth over $8 billion were signed, including a strategic agreement between SOCAR and the American Lummus Technology company, as well as a memorandum between the Azerbaijani Ministry of Economy and Oracle. However, the nature of the agreements reached was even more significant. Along with traditional energy projects, the parties signed agreements in the areas of digital infrastructure, industrial automation, cloud technologies, and artificial intelligence. This demonstrates that energy cooperation between the two countries is gradually acquiring a completely new dimension.
SOCAR and American companies: partnership proven over decades
The State Oil Company of Azerbaijan (SOCAR) has remained one of the main drivers of Azerbaijani-American energy cooperation over the past three decades. While in the 1990s, cooperation focused primarily on the development of Caspian fields, today it encompasses virtually the entire value chain—from exploration and production to digitalization, decarbonization, and the implementation of advanced technologies.
As SOCAR Vice President Afgan Isayev noted in an exclusive interview with Trend, the foundations for this cooperation were laid with the signing of the “Contract of the Century,” which defined the new oil strategy for independent Azerbaijan.
“This historic agreement became key to integrating the country’s oil and gas sector into global energy markets and created a platform for SOCAR’s long-term partnership with American companies,” he emphasized.
According to Isayev, ExxonMobil was one of the first American companies to partner with SOCAR, and cooperation with it enabled the introduction of best international practices in oil and gas field development in Azerbaijan.
Over the years, the nature of this cooperation has changed significantly. While initially focused primarily on hydrocarbon production, today it encompasses virtually all key areas of modern energy development.
SOCAR, together with ExxonMobil, is developing projects in decarbonization and carbon capture and storage (CCS) technologies. Together with Baker Hughes and SLB, the company is implementing modern exploration and production technologies while simultaneously exploring the potential of geothermal energy. The partnership with Honeywell is aimed at digitalizing production processes, implementing intelligent control systems and enterprise automation, and joint projects Projects with Boston Consulting Group contribute to the implementation of the decarbonization and sustainable development strategy.
“SOCAR’s partnership with American companies has played a key role in modernizing Azerbaijan’s energy sector, facilitating the introduction of advanced technologies and engineering solutions, and advancing digitalization and decarbonization initiatives,” Isayev noted.
In fact, this is no longer just a collaboration between oil companies, but a long-term technological partnership encompassing virtually all areas of global energy development.
Next logical step – access to American upstream
The statements by SOCAR management regarding their interest in implementing projects directly in the United States are particularly telling.
Speaking at the U.S.-Azerbaijan Trade and Business Conference in Washington, SOCAR President Rovshan Najaf announced that the company is in talks to acquire production assets in the U.S.
“SOCAR is very interested in assessing and getting the share and participation interest in upstream projects in the U.S. And we are in the process of active discussion with several partners of potential acquisitions in the U.S,” he said.
According to the company’s head, the American market is of particular interest due to its high level of technology and accumulated experience in developing unconventional hydrocarbon reserves.
“We would like to bring modern, innovative solutions, tools. And U.S. companies are the natural partners in this direction. We are open for any innovative solutions, new technologies that will serve our purpose to do what we are doing in a more efficient manner and spend less money, but getting the same or even more results,” Najaf emphasized.
Another statement by the SOCAR president is equally significant. Azerbaijan is starting to develop unconventional oil and gas resources, and American companies are considered key technology partners.
“U.S. companies are the natural partners to develop this project. Because they have access to technology, knowledge and expertise. We already have started this in cooperation with ExxonMobil,” Najaf noted.
Against this backdrop, GL Group’s acquisition of operating production assets in the US appears not a random incident, but a logical continuation of the Azerbaijani oil and gas sector’s overall commitment to expanding its presence in the American market.
Washington: Azerbaijan remains one of the U.S.’s key energy partners
Notably, a similar commitment is evident in statements from the American side.
Assistant Secretary of State for Economic, Energy, and Business Affairs Caleb Orr has repeatedly emphasized Washington’s intention to expand its participation in Azerbaijan’s energy projects.
According to him, the energy sector is already receiving specific American investments, which the United States intends to increase.
Orr placed particular emphasis on cooperation with ExxonMobil and Chevron.
He recalled that ExxonMobil signed a memorandum with SOCAR on new exploration work, and Chevron has begun new research in Azerbaijan.
“We support the implementation of these specific projects as they move forward,” he noted.
However, perhaps the most telling was another statement from the American diplomat.
“Azerbaijan is now a key energy producer for the world, and the U.S. benefits significantly from this relationship. We expect this cooperation to expand significantly in the upcoming years,” Orr stressed.
In fact, this is about Azerbaijan as a key element of the modern global energy architecture.
Further confirmation of this commitment was Orr’s statement about the U.S.’ desire to play a more significant role in the development of Azerbaijan’s pipeline and other energy infrastructure. According to him, Washington views Azerbaijan as a central element of the Middle Corridor and expects to further strengthen its role in ensuring European energy security.
This position is fully consistent with the statements of the U.S. State Department, which consistently supports the expansion of the Southern Gas Corridor and increased supplies of Azerbaijani gas to European consumers.
The State Department emphasized that the development of such routes allows for the diversification of Europe’s energy supplies and reduces dependence on a limited number of suppliers.
Thus, energy cooperation between Baku and Washington has long ceased to be limited to bilateral economic interests. Today, it’s seen as a key factor in strengthening energy security in the entire Euro-Atlantic region.
Energy as foundation for next-generation cooperation
However, the significance of the Azerbaijani-American partnership can no longer be assessed solely through the prism of oil and gas production.
As the U.S. International Trade Administration (ITA) notes, Bilateral cooperation is entering a qualitatively new phase, in which traditional energy remains the foundation of relations, but is no longer their sole content.
In an exclusive comment to Trend, the ITA emphasized that the United States views Azerbaijan as a strategic partner in several areas—from critical minerals and artificial intelligence to digital infrastructure, cybersecurity, and the development of the Middle Corridor.
At the same time, energy remains the platform upon which further expansion of cooperation is built.
The U.S. administration notes that many years of successful cooperation in the oil and gas sector have created a high level of trust between government agencies, energy companies, and private businesses in the two countries. It’s this accumulated trust that now allows for the transition to the implementation of next-generation projects that combine energy, digital technologies, and industrial modernization.
Notably, the U.S. Trade and Development Agency (USTDA) expresses a similar assessment. According to the agency’s regional manager, Sarah Leming, Azerbaijan is viewed as a promising partner for projects in LNG, civil nuclear energy, power grid modernization, digital infrastructure, and artificial intelligence.
Particular attention is given to projects that simultaneously meet the strategic interests of both countries and create opportunities for the application of American technologies and attracting investments.
In other words, cooperation has long ceased to be limited to oil and gas exports. Today, it encompasses virtually the entire modern energy ecosystem—from traditional hydrocarbon production to digitalization, artificial intelligence, decarbonization technologies, and intelligent energy infrastructure management.
New model of relations: investments become mutual
For over 30 years, American companies have been the main source of capital flow into Azerbaijan. Thanks to US.. participation, Azerbaijan has gained access to advanced production technologies, modern engineering solutions, international corporate governance standards, and the world’s largest energy markets. However, today, bilateral relations are taking on a new dimension. Azerbaijan is no longer solely a host country but is increasingly asserting itself as an investor.
A fundamentally new architecture of cooperation is being formed, based on mutual investment, technology exchange, joint development of competencies, and the equal participation of businesses from both countries in the implementation of energy projects. This is the model characteristic of mature strategic partnerships.
It’s significant that such a transformation has become possible only now. Over the past decades, Azerbaijan has consistently built a reputation as one of the most reliable partners in the global energy market. The country has consistently fulfilled its export obligations, implemented large-scale infrastructure projects on time, and maintained its status as a predictable supplier even during periods of high turbulence in global energy markets.
It is thanks to this consistent policy that Azerbaijan is now perceived by its international partners not only as an energy supplier but also as a country capable of investing in complex international projects, managing high-tech assets, and ensuring their efficient operation.
