Ankara and Baku are taking further steps to boost oil and gas production in Azerbaijan with the signing of a major agreement, the Turkish Energy and Natural Resources Minister announced on Monday.
"The Shafag-Asiman Production Sharing Agreement will form another partnership between Turkish Petroleum, SOCAR (State Oil Company of Azerbaijan), and bp," said Alparslan Bayraktar, addressing Baku Energy Week in Azarbaijan's capital.
"The partnership between Türkiye and Azerbaijan stands as a model of strategic energy cooperation built on deep-rooted ties of history, culture, and shared vision," Bayraktar added.
During Baku Energy Week, Turkish Petroleum, SOCAR, and bp are set to sign a deal to develop the natural gas field in the Caspian Sea.
"Turkish Petroleum is entering the Shafag-Asiman field as a partner. We have acquired a 30% stake. We will start production in this field together with our usual partners SOCAR and bp," Bayraktar told reporters following his speech.
Pointing out that Turkish Petroleum's visibility in Azerbaijan has increased, Bayraktar said: "We are also discussing other fields in the Caspian Sea. Our efforts in this area will continue to grow."
Ankara and Baku have significantly strengthened their energy partnership, advancing key projects to bolster regional energy security and expand cooperation on renewables.
-Türkiye's energy policy is shaped around three main objectives
During his speech, Bayraktar noted that geopolitical tensions, aging infrastructure, cyber threats, and market volatility are reshaping the energy landscape. He added that energy security today goes beyond supply, requiring flexibility, resilience and, importantly, affordability.
"And how do we get them all when infrastructure needs are rapidly expanding and maintaining system stability is more critical than ever?" he asked. "We need to diversify our resources and build strong grids that have large storage capacities and high interconnectivity with neighboring markets."
Pointing out that Türkiye's energy policy is shaped around three main objectives—supply security, reducing import dependency, and ensuring affordability—Bayraktar said: "To achieve all these, we are focusing on renewables, energy efficiency, nuclear energy, developing oil and gas, and developing critical mineral resources."
Bayraktar said renewables now account for more than 60% of Türkiye's electricity generation. "At COP29 in Baku last year, we announced our target to quadruple our existing solar and wind capacity to reach 120 gigawatts by 2035," he said. "As a good start, we added 7 gigawatts of renewables to our mix last year."
Türkiye is scaling infrastructure to match the growing needs of its economy, including high-voltage direct current (HVDC) lines and battery storage, and launching the country's first nuclear plant in Akkuyu, which is expected to become operational next year, he explained.
On the oil and gas side, Bayraktar said that Turkish Petroleum is expanding into new markets and regions.
"We continue to invest in our domestic hydrocarbon production. Today, in the Sakarya Gas Field, we produce 9.5 million cubic meters of gas daily, which will be doubled by 2026, and reach 40 mcm by 2028," he added.
Türkiye is also aware of the role that critical minerals will play, he noted. "Türkiye is actively investing in mining projects both domestically and internationally, including rare earth mineral projects."
Bayraktar was also received by Azerbaijani President Ilham Aliyev and they discussed ongoing energy cooperation and potential new joint projects.
By Handan Kazanci
Anadolu Agency