PSA operator for Guba-Caspian oil and gas region Gran Tierra Energy opens branch in Azerbaijan

BAKU. Oct 12 (Interfax) - Canada's Gran Tierra Energy, which is the operator under the production sharing agreement (PSA) for a block in the Guba-Caspian oil and gas region of Azerbaijan, has registered a branch in Baku, according to materials from the country's State Tax Service.

The branch Gran Tierra Energy (Azerbaijan) GmbH has passed state registration.

The legal representative of the branch is a citizen of Colombia, Hector Enrique Villalobos Herrera.

Meanwhile, Gran Tierra Energy reported that its shareholders approved the sale of its oil and gas business in Colombia and Ecuador to France's Maurel & Prom on October 9 for a total of about $1.33 billion, taking into account the debt obligations assumed by the buyer. Completion of the deal is expected around December 31, 2026.

The company expects to receive approximately $315 million in net cash proceeds from the deal. According to statements by Gran Tierra Energy's management, the company expects to fully repay its debt after the deal is closed, which will allow it to finance projects in Canada and Azerbaijan.

The company reiterated that after the completion of the deal, Gran Tierra Energy intends to focus its activities in Canada and Azerbaijan.

The PSA for the promising block in the Guba-Caspian oil and gas region of Azerbaijan was signed by Gran Tierra Energy and the State Oil Company of the Azerbaijani Republic (SOCAR) on February 18, 2026.

According to the terms of the agreement, Gran Tierra is the operator of the project with a participating interest of 65%.

The contract area covers a structure about 65 km long. The PSA provides for a five-year exploration and appraisal period, as well as a 25-year development period for commercially viable fields with the possibility of extending it for another five years.

The exploration period consists of two stages: an initial three-year one and a subsequent two-year one. The first stage provides for gravimetric surveys, the drilling of two exploration wells and the acquisition of 3D seismic data over an area of 250 square kilometers.

After completing the first stage, the company will be able to move to the second, which provides for the drilling of two more exploration wells and the acquisition of 3D seismic data over an additional area of 250 sq. km.

Gran Tierra Energy previously said that it planned to begin airborne gravimetric surveys as part of the project in 2026, and seismic and drilling operations in 2027.

Gran Tierra Energy Inc. is an independent international energy company. The company's shares trade on the New York Stock Exchange (NYSE American), the Toronto Stock Exchange, and the London Stock Exchange under the ticker GTE.