BAKU (WO) — The State Oil Company of the Azerbaijani Republic (SOCAR) and Gran Tierra Energy Inc. have signed a production sharing agreement (PSA) covering exploration and development of a prospective onshore block in Azerbaijan’s Guba-Caspian region.
Under the terms of the agreement, Gran Tierra will serve as operator with a 65% participating interest in the block. The PSA covers exploration, development and production activities and will take effect after ratification by the Azerbaijani parliament.
According to SOCAR, the initial exploration program will focus on geophysical and drilling work to assess the block’s hydrocarbon potential.
“The exploration program includes the collection of gravimetric data, conducting 3D seismic surveys, and drilling exploration wells aimed at identifying the hydrocarbon potential of the contract area,” SOCAR said.
The PSA follows a memorandum of understanding signed in June 2025, under which the companies agreed to conduct joint technical and economic studies related to exploration and potential development in the Guba-Caspian region.
Gran Tierra will also evaluate existing geological and technical datasets, along with logistical and infrastructure considerations tied to the project.
Gran Tierra, headquartered in Calgary, is engaged in oil and natural gas exploration and production in Canada and across Latin America, including Colombia and Ecuador. The Azerbaijan agreement marks an expansion of its upstream footprint into the Caspian region.
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