The State Oil Company of Azerbaijan (SOCAR) has announced its intention to become a high-level national energy company with a diversified portfolio of hydrocarbon and low-carbon businesses by 2035. By 2050, the company aims to contribute to global energy security and climate sustainability.
According to Report, Afgan Isayev, Vice President of SOCAR, shared the company's plans during the session "SOCAR's Progress in Decarbonization: Challenges and Achievements" at COP29. He outlined three key areas for achieving these goals: decarbonization of the core business, organizational transformation, and development of low-carbon businesses.
He said SOCAR has already made progress in reducing emissions and has started implementing four projects backed by legally binding agreements. The company has identified nine emission reduction levers and developed a Marginal Abatement Cost Curve (MACC), focusing on areas such as methane emission reduction and energy efficiency in refining and production.
Isayev emphasized the importance of technological progress in tackling decarbonization challenges, citing the significant advancements in wind and solar energy. SOCAR is concentrating on accessible and effective solutions, such as reducing methane leaks and improving energy efficiency.
As part of its transformation program, SOCAR created a new segment called "Energy Transition, Environment, and Decarbonization" in the fourth quarter of last year. The company has revised its internal processes to adapt to these challenges and has introduced Key Performance Indicators (KPIs) to motivate employees.
Isayev also highlighted the significance of collaboration in the energy transition, expressing gratitude for the opportunity to join the Oil and Gas Decarbonization Charter (OGDC) during COP28. The charter brings together 44% of the oil and gas industry, facilitating the sharing of technologies, experiences, and best practices.
He also noted that SOCAR has also joined the "Methane Partnership 2.0" initiative, which establishes a universal language for methane reporting. The company is working with BP to focus on methane guidelines and promote a global emission reduction program, sharing its experiences with other countries and smaller oil and gas companies.
In collaboration with Bain & Company, SOCAR has obtained its first-ever ESG (Environmental, Social, and Governance) rating.