SOCAR Charts Ambitious Path Towards Energy Transition and Decarbonization

Baku, Azerbaijan (Reuters) - The State Oil Company of Azerbaijan (SOCAR) has unveiled its strategic vision to transition into a national energy company, committed to delivering affordable, safe, and stable energy solutions. This proclamation was made by SOCAR Vice President Afghan Isayev during the forum "The Tax system in a new period of development: strategic goals for a sustainable economy" held in Baku.

Isayev outlined SOCAR's transformational journey, positioning the company as a pivotal player in the energy transition. At the nascent stage of this transformative process, SOCAR operates as a national oil company, strategically focused on establishing a robust value chain within the oil and gas sector.

However, Isayev underscored SOCAR's ambitious targets, projecting the company's evolution into a leading national energy entity by 2035. This vision encompasses a diversified portfolio encompassing hydrocarbon and low-carbon ventures, with an emissions profile benchmarked against global energy leaders.

Moreover, Isayev articulated SOCAR's long-term aspiration to attain the status of a national energy company by 2050, dedicated to enhancing global energy security and resilience in the face of climate change. Central to this vision is SOCAR's decarbonization agenda, which aims to achieve net-zero emissions by 2050.

Isayev elaborated on the comprehensive decarbonization program, underpinned by meticulous emission analysis, portfolio assessment, and delineation of emission reduction targets. Embarking on this program in the current year, SOCAR is committed to implementing measures across all operational segments and production assets, spanning its geographic footprint.

The strategic imperative driving SOCAR's transformation reflects a broader global trend observed across the oil and gas industry. The shift towards becoming energy companies is propelled by imperatives to diversify operations and embrace renewable energy segments. Notably, SOCAR's collaboration with Masdar (UAE) on wind and solar power projects in Azerbaijan, with a cumulative capacity of 4 GW, exemplifies this strategic pivot.

Furthermore, SOCAR's initiatives extend to innovative projects such as laying electric cables to offshore platforms to curtail natural gas consumption and exploring hydrogen transportation in partnership with the Trans Adriatic Pipeline Consortium (TAP) for the European market.

In alignment with Azerbaijan's national energy objectives, SOCAR aims to augment the share of renewable energy sources to 30% by 2030. The country boasts substantial renewable energy potential, including 27 GW of wind and solar energy on land, 10 GW in the Karabakh and Eastern Zangezur regions, and a staggering 157 GW of wind energy in the Caspian Sea sector.