(Bloomberg) — ExxonMobil has agreed to pump oil and natural gas from Azerbaijan’s shale fields as the Texas energy giant takes its fracing expertise overseas.
ExxonMobil has entered a joint venture with Azerbaijan’s state oil company SOCAR that will allow it to explore and develop “unconventional hydrocarbon resources” in the Middle Kura basin, the companies said in a statement. ExxonMobil will operate the project, pending approval by the country’s legislature.
U.S. shale has been the largest source of new global oil supplies for the past 15 years, transforming the country into the biggest producer of crude and exporter of liquefied natural gas. ExxonMobil and others are keen to take the lessons learned in the Permian basin and other U.S. shale fields to countries with similar geologic endowments.
The legal and regulatory structures governing such drilling and oil production often are more complicated than in the U.S., requiring extensive negotiations before operations commence. ExxonMobil and SOCAR have been in talks for more than a year on the commercial and other aspects of the deal, which has been encouragedby the Trump administration.
“We will combine SOCAR’s knowledge of Azerbaijan with ExxonMobil’s global experience and technology to better understand the basin’s potential and pursue opportunities for safe and efficient development,” said Bart Cahir, an ExxonMobil senior vice president.
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