State Oil Company of Azerbaijan Republic (SOCAR) is broadening its international presence with a landmark 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 strategically significant energy assets-located offshore of Israel.
This acquisition marks a pivotal step in SOCAR’s long-standing ambition to diversify its global energy portfolio.
“This deal is a key component of our strategic push to extend our production footprint beyond Azerbaijan,” explained Energy expert Zafar Valiyev. “The Eastern Mediterranean oil and gas fields, particularly since 2010, have evolved into highly lucrative regions, drawing substantial international interest and investment.”
Discovered after 2009, the Tamar gas field now stands as a critical asset in the region, with proven gas reserves of roughly 300 billion cubic meters and recoverable reserves estimated at 238 billion cubic meters. Currently producing approximately 28 million cubic meters per day-translating to an annual output exceeding 10 billion cubic meters-Tamar plays a central role in the regional energy market. A significant portion of its output is reserved for Israel’s domestic consumption, while the remainder is exported under long-term contracts to neighboring countries such as Egypt and Jordan. This strategic export framework not only underpins Israel’s role as a key regional energy supplier but also strengthens its geopolitical ties with neighboring states.
Valiyev, a Baku-based energy analyst, emphasized that the Eastern Mediterranean’s oil and gas fields have attracted global attention for over a decade. “Beyond Tamar, fields like Leviathan in Israel, as well as the Zour, Nargiz, and Aphrodite fields in Egypt and Cyprus respectively, are instrumental in ensuring regional energy security and stability. Their significance extends well beyond national borders, influencing both the political and economic landscapes of the broader region,” he noted.
The Tamar acquisition is a historic milestone for SOCAR, marking its first foray into gas fields outside its home market. This move comes amid rising natural gas prices in Europe, where 1,000 cubic meters are now trading at around $5,550-a trend expected to continue. “Investments in the gas sector are set to yield substantial returns, and SOCAR’s entry into the Eastern Mediterranean market could significantly bolster its revenue streams,” Valiyev added.
Since 2005, SOCAR has steadily expanded its international operations, investing in markets across Georgia, Romania, Ukraine, Türkiye, Austria, and Switzerland. Its ventures outside Azerbaijan have primarily spanned the retail and wholesale sectors of oil products, complemented by strategic production facilities in Türkiye, such as the Star Oil Refinery and, formerly, Petkim. These investments have been critical in supporting not only Türkiye’s energy security but also its growing demand for chemical products.
SOCAR’s latest move underscores its commitment to playing an increasingly influential role in the global energy market, setting the stage for further strategic investments in key international assets.
