Türkiye’s state-owned oil and gas company, TPAO, is acquiring a 30% stake in Azerbaijan’s Shafag-Asiman natural gas field, further strengthening Ankara’s energy partnership with Baku. Energy and Natural Resources Minister Alparslan Bayraktar announced the deal Monday during the Baku Energy Week conference, describing the move as a new chapter in strategic cooperation between the two countries.

The production-sharing agreement is set to be signed Tuesday between TPAO, Azerbaijan’s state energy firm SOCAR and British energy major BP. The offshore block, located about 78 miles southeast of Baku in the Caspian Sea, sits at a depth of 650 to 800 meters. The first exploration well was drilled in 2020.

Bayraktar emphasized the historical and cultural foundations of Türkiye-Azerbaijan energy ties. “This is a strategic energy alliance based on shared values and mutual vision,” he said. “With this deal, we aim to expand joint production in Azerbaijan.”

In a message to the conference, President Recep Tayyip Erdogan reaffirmed Türkiye’s commitment to deepening energy cooperation with Azerbaijan. He praised landmark joint infrastructure such as the Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines and TANAP, calling them vital to regional and European energy security.

“Our collaboration continues to make significant contributions to the energy stability of both our region and Europe,” Erdogan said. He also highlighted the recent commissioning of the Igdir-Nakhchivan pipeline as a key milestone in bilateral energy cooperation.

Bayraktar said discussions are underway to broaden collaboration in the Caspian region and beyond. “We’re evaluating additional projects, including renewable energy development in Nakhchivan and its transfer through Türkiye to Europe,” he noted.

He also referenced a recent regional pact among Türkiye, Azerbaijan, Georgia and Bulgaria for green electricity transmission, describing it as a “historic step” toward regional integration.

Erdogan pointed to Azerbaijan’s strategic role in the global energy market, especially as the region grapples with geopolitical risks and infrastructure challenges. He noted future plans to transport Turkmen gas via Azerbaijan and Türkiye to expand supply routes and boost energy diversification.

Bayraktar outlined Türkiye’s broader energy strategy focused on supply security, import reduction and affordability. He said the country now generates over 60% of its electricity from renewable sources. At COP29, Türkiye pledged to quadruple its wind and solar capacity to 120 gigawatts, beginning with 7 gigawatts added in 2024.

Additional investments include new electric transmission lines, battery storage, and the upcoming activation of the Akkuyu nuclear plant. Bayraktar also cited growing domestic gas production and increased exploration for critical minerals both at home and abroad.