The State Oil Company of the Republic of Azerbaijan SOCAR, a shareholder of the gas pipeline, announced that it is expanding its international presence with an acquisition in the Eastern Mediterranean energy arena.

On January 31, 2025, SOCAR signed an agreement with Union Energy to acquire a 10% effective stake in the Tamar gas field – one of the region's most important energy assets – located offshore Israel.

This acquisition marks an important step in SOCAR's long-standing ambition to diversify its global energy portfolio.

“This agreement is a key component of our strategic push to expand our production footprint beyond Azerbaijan,” explained energy expert Zafar Valiyev. “The oil and gas fields in the Eastern Mediterranean, especially since 2010, have become highly profitable regions, attracting significant international interest and investment.”

Discovered after 2009, the Tamar gas field now stands as a significant asset in the region, with proven gas reserves of around 300 billion cubic meters and recoverable reserves estimated at 238 billion cubic meters. Currently producing approximately 28 million cubic meters per day, which translates into an annual production exceeding 10 billion cubic meters, Tamar plays a central role in the regional energy market. A significant portion of its production is reserved for Israel’s domestic consumption, while the remainder is exported under long-term contracts to neighboring countries such as Egypt and Jordan.

The acquisition of Tamar is a significant milestone for SOCAR, marking its first foray into gas fields outside its domestic market. The move comes amid rising natural gas prices in Europe, where 1000 cubic meters now trade for around USD 5550 - a trend that is expected to continue. “Investments in the gas sector will bring significant revenues, and SOCAR’s entry into the Eastern Mediterranean market could significantly boost its revenue levels,” Valiyev added.

Since 2005, SOCAR has continuously expanded its international operations, investing in markets beyond Georgia, Romania, Ukraine, Turkey, Austria and Switzerland.

SOCAR's latest move underscores its commitment to playing an increasingly influential role in the global energy market, paving the way for further strategic investments in key international assets, according to the official announcement.

Referring to the Embassy of Azerbaijan in Albania, SOCAR also plans to open an office in Tirana soon to further explore the possibilities of mutually beneficial areas of bilateral cooperation and investment opportunities. Since last year, SOCAR has been in talks with its Albanian counterparts to complete the legal background of the Korça city gasification project. After the completion of the legal phase of the project, the parties can proceed with its implementation, the press release concludes.

In the gas exploitation plans, one of the government's projects is the one for gasification that will start from the city of Korça. This project is included in the 10-year investment plan of the state-owned company Albgaz and foresees the installation of the necessary infrastructure in the city for the exploitation of gas by families and businesses.

In another phase, this is expected to be extended to other cities such as Pogradec, Fier, or Elbasan. Socar is one of the shareholders of the TAP gas pipeline, with 20% of the shares, along with BP 20%, Snam 20%, Fluxys 20% and Enagás 20%.