SOCAR: Baku's soft power

In the modern world, energy remains one of the key levers of influence on international relations. State and private oil and gas companies, especially in resource-rich countries, increasingly go beyond purely economic activities, becoming part of diplomacy.

The participation of oil and gas companies in strategic projects, international agreements, and energy diplomacy transforms them into conductors of national interests on the global arena. In Azerbaijan, the state oil company SOCAR fulfills this role.

Shaping Europe's Energy Map

In recent years, SOCAR has consistently strengthened its position as Azerbaijan's "soft power" instrument, writes the newspaper "Caspian". The company participates in virtually all key agreements concluded by Baku with foreign states. Thanks to a broad portfolio of international projects - from exploration and production to processing and transportation of energy resources - SOCAR has become an important link between Azerbaijan and its foreign economic partners. The company's presence in foreign markets not only strengthens the country's economic position but also shapes Azerbaijan's image as a reliable supplier and strategic partner.

SOCAR's most extensive foreign presence is observed in Turkey, where the company has become the largest foreign investor. Key projects include the STAR oil refinery in Izmir, gas distribution infrastructure, and participation in the construction of the Trans-Anatolian Pipeline (TANAP), which ensures the supply of Caspian gas to Europe. These initiatives strengthen Azerbaijan's position as an energy partner of the EU and contribute to stability in the region's energy sector.

In Europe, SOCAR is developing a retail network and exploring new energy formats. In Switzerland, the company acquired the Esso Schweiz gas station network and is investing in hydrogen infrastructure development. In Austria, it controls the A1 gas station network, and in Romania, Georgia, and Ukraine, it is actively operating in the petroleum products market. Agreements have also been concluded for gas supplies to Slovakia and North Macedonia.

Activity in Asian and African Markets

In the Middle East, SOCAR this year received a license for gas exploration in Israel's exclusive economic zone, becoming the operator of one of the promising blocks. Additionally, the company acquired a 10% stake in the operating Tamar gas field, which provided access to infrastructure and partnership with international companies such as Chevron and NewMed. For some time, the company has been actively involved in Syria's energy sector, essentially engaged in rebuilding destroyed infrastructure.

In Central Asia, SOCAR is expanding its geological exploration activities - particularly on the Ustyurt Plateau in Uzbekistan. Cooperation in oil refining and transportation continues in Kazakhstan and Iran. Logistical and project connections are maintained in Serbia and Russia.

Special attention is paid to South and Southeast Asia. In Pakistan, SOCAR is implementing a long-term LNG supply agreement, participating in the modernization of the national oil refinery and the construction of the Machike-Thallian-Tarujabba oil pipeline. The creation of a joint trading company in Singapore to provide Pakistan with energy resources is being discussed. In Vietnam, the company has supplied more than 30 million barrels of oil to the Dung Quat refinery and concluded agreements with Petrovietnam in exploration, technical support, and personnel training.

In Africa, SOCAR is focused on petroleum product trading and participation in the modernization of energy facilities. An agreement has been signed with the state oil company of the Republic of Congo (SNPC) for the modernization of the CORAF refinery. SOCAR actively supplies oil and petroleum products to Kenya, Algeria, Nigeria, Burkina Faso, Côte d'Ivoire, Benin, and other countries in the region, and is also participating in negotiations on green energy projects with partners, including Eni.

Expanding International Presence

In recent years, SOCAR has actively included renewable energy projects in its strategy. Agreements have been signed for the construction of offshore wind farms in the Caspian Sea in partnership with Chinese and Middle Eastern companies. Within the country, solar and wind energy projects with a capacity of up to 1 GW are being developed in partnership with Masdar. In Switzerland, SOCAR is developing infrastructure for electric vehicles. Cooperation is also underway with international banks, including Japan's JBIC, to finance sustainable environmental projects.

At the same time, despite the notable expansion of its geographical footprint and active participation in transnational projects, further strengthening of SOCAR's position abroad requires not only investment activity but also a well-thought-out strategy that takes into account the global challenges of energy transformation, political risks, and institutional constraints.

Nevertheless, SOCAR is confidently expanding its international presence, combining an export model with involvement