The Cabinet of Ministers of the Republic of Azerbaijan has officially approved the government guarantees and obligations regarding the "Agreement on exploration, development, and production sharing for the area covering parts of the Guba, Gusar, Shabran, Siyazan, and Khizi districts" between the State Oil Company of the Republic of Azerbaijan (SOCAR) and Gran Tierra Energy (Azerbaijan) GmbH.
According to the Operative Information Center-OMM, Prime Minister Ali Asadov has signed a decree formalizing this decision. The agreement, which outlines the framework for investment and operational cooperation in these northern regions, was originally signed on February 18 of this year.
This development is part of Azerbaijan's broader strategy to attract foreign investment into its energy sector and maximize the potential of untapped hydrocarbon resources. Production Sharing Agreements (PSAs) have historically served as a cornerstone of Azerbaijan's energy policy, providing a stable legal and fiscal framework for international energy companies to operate within the country while ensuring the state retains significant control and revenue from its natural resources.
