Gran Tierra Secures 65% Stake in Azerbaijan’s Guba-Khazaryani Region

Event summary

  • Gran Tierra signed an exploration, development, and production sharing agreement (EDPSA) for Azerbaijan’s Guba-Khazaryani region with SOCAR.
  • The deal grants Gran Tierra a 65% working interest and operatorship over ~0.4 million gross acres, more than double its current Ecuador acreage.
  • The EDPSA includes a five-year exploration phase (two wells and 250 km² of 3D seismic in each phase) and a 25-year development period.
  • Gran Tierra plans to start an airborne gravity study in 2026, with seismic and drilling activities beginning in 2027.

The big picture

Gran Tierra’s entry into Azerbaijan aligns with its strategy of capital-efficient growth in stable, hydrocarbon-rich regions. The deal positions the company to tap into Azerbaijan’s export-ready infrastructure and Europe’s energy security needs, though success hinges on navigating regulatory hurdles and delivering on exploration commitments. The scale of the Contract Area—surrounding a structure with over 100 million barrels of oil and 200 billion cubic feet of gas—underscores the strategic significance of this expansion.

What we're watching

Regulatory Approval
Whether the EDPSA receives legislative approval in Azerbaijan, a critical step for the deal’s effectiveness.
Exploration Success
The pace at which Gran Tierra can translate seismic data and drilling into commercial discoveries in the region.
Market Access
How Gran Tierra integrates the Azerbaijani assets into its existing portfolio to leverage European energy demand.