SOCAR tightens its grip on Caspian Sea oil & gas project with Itochu stake buyout

August 4, 2026, by Melisa Cavcic

The State Oil Company of the Republic of Azerbaijan (SOCAR) has strengthened its hold on a giant oilfield in the Caspian Sea by acquiring Itochu Corporation’s participating interest, increasing its ownership in the oil and gas project off the coast of Azerbaijan as the Japanese trading and investment conglomerate exits the project.

SOCAR has acquired Itochu’s participating interest in the BP-operated Azeri-Chirag-Gunashli (ACG) project, with the relevant transaction documents regarding the purchase of participating interest signed and the acquisition carried out in compliance with the requirements of the legislation, the firm’s internal regulatory rules, as well as existing contractual obligations.

Rovshan Najaf, SOCAR’s President, commented: “The ACG project has been making a significant contribution to the energy security of Azerbaijan and the wider region for many years. At the same time, the commencement of the first non-associated gas production from the ACG block this year opens up new opportunities for the project’s future development and for further strengthening Azerbaijan’s gas production potential.

“We would like to express our sincere appreciation to Itochu for its valuable contribution to the project and its strong partnership over the years. We are confident that, through the joint efforts of all partners, adherence to the highest operational standards and a relationship built on mutual trust, the project will continue to deliver long-term success.”

Since the Japanese company held a 3.65% participating interest in the ACG oil fields before this transaction, SOCAR’s participating interest in the project has increased from 31.65% to 35.3%. This strategic acquisition further strengthens the Azerbaijani player’s footprint and lays a solid foundation for future growth across regional energy markets.

The non-associated gas production operations on the field began a few weeks ago. The ACG co-venturers are BP, SOCAR, MOL, Inpex, ExxonMobil, TPAO, and ONGC Videsh.

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Tetsuya Yamada, Senior Operating Officer, Chief Operating Officer – Energy & Power Solutions Division at Itochu Corporation, said: “Since becoming the first Japanese company to invest in Azerbaijan in 1996, Itochu has built a strong partnership with SOCAR over the past three decades through the ACG project and other energy-related investments.

“ACG has been an exceptionally successful project, and our decision to divest this long-standing asset to SOCAR reflects both Itochu’s evolving strategic priorities and our commitment to further deepening our partnership with SOCAR.

“Accordingly, this divestment does not represent an exit from Azerbaijan, but rather marks a new chapter in our partnership. Azerbaijan will remain an important market for Itochu’s investment and trading activities. We look forward to further strengthening our collaboration with SOCAR and jointly pursuing new business opportunities, both in Azerbaijan and in international markets.”