SOCAR Corporate Strategy 2035
The SOCAR Corporate Strategy 2035 was approved by the Supervisory Board of SOCAR in 2021.
The strategy builds on 5 fundamental elements.
Energy security - Ensuring the energy security of Azerbaijan and contributing to the regional and international energy security through sustainable oil and gas production, oil refining and petrochemical production and infrastructure.
Digitalization - Increasing the operational effectiveness through digitalization of value chain segments within the single digital transformation.
Sustainability of business - Continually reviewing and optimizing SOCAR’s portfolio to achieve development in the selected areas of existing businesses through innovations and venture capital investments.
Effectiveness and optimization - Implementing the optimization measures throughout the entire value chain and strengthening the operational effectiveness by applying the latest technologies and innovative solutions.
Energy transition – Contributing to global sustainability through the development of a low-carbon, circular economy and environmentally friendly operations.
Based on the fundamental elements of the strategy, SOCAR defined the following strategic visions and goals in key operation areas, such as upstream, midstream, downstream, gas distribution, services, retail fuel sale and trading:
Upstream - acceleration of hydrocarbon resources monetization in oil and gas fields and application of effective operating models
Midstream - increasing the effectiveness of oil and gas transportation operations
Downstream - strengthening the integration of refining and chemical industries, operational excellence and development
International business operations (trading, gas distribution and new fuel stations) - increasing the profitability, optimization and development
Oil and gas services - optimization and development
In addition to the strategic goals to be attained in the main areas of operations, SOCAR defined the following areas and approaches as the key directions, which will contribute to SOCAR’s long-term sustainable development and are known as new horizons:
Digitalization – defined as one of 5 fundamental elements. With this approach the increase of efficiency and flexibility through the effective application of digitalization in SOCAR’s local, regional and international operations has been defined as one of the key strategic directions.
Energy transition – against the background of climate change and other global challenges, SOCAR will revisit its participation in low-carbon business operations (e.g. green energy, biofuel, biopolymer and hydrogen) by using its rich experience in the oil and gas industry as part of its future development and growth endeavours.
Innovations and venture capital investments – SOCAR will strengthen the innovation environment within the company to promote the application of innovative approaches in oil and gas operations, and will form an appropriate system for employees to participate in this process with their innovative skills. In order to strengthen the stability of the business, SOCAR will establish its activities in the area of venture capital investments and will consider effective investment opportunities in the local, regional and international markets in the areas that correspond to the business profile. At the same time, SOCAR will support the formation of the start-up ecosystem in the country as part of its activities towards this vision.
Moreover, SOCAR will take measures to be more proactive in optimizing its business portfolio, focusing on future market trends, the financial and economic activity of its portfolio companies, and other factors, and during this process, the effective use of human resources and social employment obligations will continue to remain SOCAR’s unshakable principles.
In order to support the successful implementation of the strategy, SOCAR will implement functional excellence measures in such areas as human resources, finance, risk, health and safety, corporate social responsibility, etc.