Kazakhstan's KazMunayGas and Azerbaijan's SOCAR have reached an agreement to boost the transit of Kazakh oil via the Aktau-Baku-Ceyhan route in 2025. This decision was made during a meeting in Baku between KazMunayGas Chairman Askhat Hasenov and SOCAR President Rovshan Najaf, where they evaluated the progress of the 2022 oil transportation agreement.

Source: The Times of Central Asia

By the end of 2024, the amount of Kazakh oil transported through Azerbaijan totaled 1.4 million tons. With the new plan in place, this volume is expected to rise to 1.7 million tons in 2025. This expansion will enhance the transit capabilities of both Kazakhstan and Azerbaijan while improving Kazakhstan's access to global energy markets.

Focus on Decarbonization and Energy Collaboration

During their discussions, the two companies also explored their strategic partnership in decarbonization, which was formalized at the 29th UN Climate Change Conference (COP-29) in Azerbaijan. The agreement emphasizes:

• The implementation of low-carbon technologies in the oil and gas industry.
• The reduction of harmful emissions from energy production.

Furthermore, they addressed collaborative exploration initiatives, oil and gas production, investment opportunities, and the digitalization of industrial processes.

SOCAR is a key partner of KazMunayGas. Together, we will continue to contribute to global energy security and the stability of hydrocarbon supplies. This partnership will create new transit opportunities through the Caspian region

Kazakhstan and Azerbaijan's Broader Cooperation

In addition to oil transit, Kazakhstan and Azerbaijan have recently signed an agreement to build an underwater fiber-optic communication line across the Caspian Sea. This deal was concluded during Kazakh Prime Minister Olzhas Bektenov's recent visit to Baku.

This initiative, along with the increased oil transit, underscores the strengthening economic and strategic partnership between these two Caspian nations.