Azerbaijan's State Oil Company to supply oil to Italian subsidiary of Sonatrach on long-term basis

BAKU. May 27 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) has received official permission from the Algerian authorities to supply oil to Sonatrach Raffineria Italiana (a 100% subsidiary of Algeria's Sonatrach in Italy), Algerian media reported.

"SOCAR will supply Azerbaijani Azeri Light oil and other grades of oil to Sonatrach Raffineria Italiana on a long-term basis, thereby strengthening commercial energy exchange between the two parties," a statement said.

According to the media, the corresponding agreement is included in the memorandum on cooperation between Algeria and Azerbaijan in the oil and gas sector, which was recently ratified by Algerian President Abdelmadjid Tebboune.

"The ratification of the memorandum gave the green light for organizing Azerbaijani oil supplies and the practical implementation of other agreements reflected in the document. Overall, the memorandum signed on November 29, 2022, reflects the intention of both countries to deepen economic and industrial ties through a long-term partnership based on mutual interests and coordination in the energy sector," the statement said.

The memorandum also provides for cooperation with Azerbaijan in the exploration and production of hydrocarbons onshore and offshore, the development of oil and gas projects, petrochemicals, marketing, and the transportation and distribution of petroleum products, including naphtha and liquefied natural gas.

In addition, the document covers green energy projects, including the development of hydrogen energy and transport infrastructure, as well as cooperation in research, industry management, energy infrastructure and personnel training.

The memorandum is concluded for a period of five years with the possibility of automatic renewal if neither party declares withdrawal from the agreement.