Azerbaijan’s state-owned oil company SOCAR has acquired Japanese trading and investment conglomerate Itochu Corporation’s entire 3.65% interest in the BP-operated Azeri-Chirag-Gunashli oil and gas development in the Azerbaijani sector of the Caspian Sea, according to SOCAR.
The deal, completed on 3 August, increased SOCAR’s holding to 35.3% from 31.65%. The transaction documents were signed and the acquisition completed under applicable legislation, internal rules and the regulatory obligations governing the project. The price was not disclosed.
Itochu sold all shares in its wholly owned subsidiary CIECO Azer, which held the stake and rounded it to 3.6% in its first-quarter presentation. Itochu booked ¥34bn ($216m) in extraordinary gains from the disposal. The amount represents an accounting gain rather than SOCAR’s purchase price.
“The ACG project has been making a significant contribution to the energy security of Azerbaijan and the wider region for many years,” SOCAR president Rovshan Najaf said. Najaf added that the start of non-associated gas production from ACG in 2026 created further development opportunities and could strengthen Azerbaijan’s gas production capacity.
Itochu senior operating officer and Energy & Power Solutions Division chief operating officer Tetsuya Yamada said the sale reflected changing strategic priorities but did not mark an exit from Azerbaijan.
Itochu became the first Japanese company to invest in Azerbaijan in 1996 and has worked with SOCAR through ACG and other energy investments for about three decades. BP operates ACG and holds 30.37%. The other partners are MOL with 9.57%, INPEX with 9.31%, ExxonMobil with 6.79%, TPAO with 5.73% and ONGC Videsh with 2.93%.
SOCAR is an Azerbaijani state-owned integrated energy company active in hydrocarbon production, processing, transportation and marketing.
Itochu, founded in 1858, operates across energy, minerals, machinery, chemicals, food and finance through about 90 bases in 60 countries.