Azerbaijan Parliament Ratifies Gran Tierra Energy Exploration Deal

Azerbaijan's parliament, the Milli Majlis, has officially ratified an exploration, development, and production sharing agreement with Gran Tierra Energy for the onshore Guba-Khazaryani region. This legislative approval allows the company to continue its international expansion, formalizing a partnership signed with the State Oil Company of the Republic of Azerbaijan (SOCAR) on February 18, 2026.

"We would like to thank our partner, the State Oil Company of the Republic of Azerbaijan, the Government of the Republic of Azerbaijan and all of its agencies involved in the ratification process, and the Milli Majlis for their hard work and commitment in passing this bill during the first plenary session of the autumn term," said Gary Guidry, President and Chief Executive Officer of Gran Tierra.

Technical Surveys and Regional Scope

Before securing the legislative approval, Gran Tierra Energy collected geophysical data to assess the project. The company has completed an airborne digital full tensor gradiometry (FTG) survey across the Guba-Khazaryani area.

This survey covered 5,775-line kilometers and spanned approximately 4,815 square kilometers. FTG technology is used in hydrocarbon exploration to measure variations in the Earth's gravitational field, which helps geologists map subsurface structures and identify potential reservoir traps before committing to drilling operations.

Financial Context and Market Position

The ratification marks a step in Gran Tierra's strategy to diversify its asset base beyond its traditional operations. As of October 9, 2026, shares of Gran Tierra Energy (GTE) were trading at $10.58.

What Is at Stake for Regional Development

For Gran Tierra, the agreement provides a framework to explore and potentially develop energy assets in a region known for its historical oil production. Production sharing agreements (PSAs) are common in the energy sector, as they allow international companies to recoup exploration and development costs from a portion of the produced oil or gas before sharing the remaining profits with the host nation. The passage of this bill ensures that the legal and operational terms governing these potential future revenues are binding under Azerbaijani law.