Upon completion of the transaction, ADNOC will own a 30% participating interest in the Absheron field, with SOCAR and TotalEnergies holding 35% stakes, respectively
UAE’s state-owned oil company Abu Dhabi National Oil Company (ADNOC) has agreed to buy a 30% stake in the Absheron gas and condensate field in the Caspian Sea offshore Azerbaijan.
ADNOC to acquire 30% in Absheron gas field. (Credit: ADNOC Group)
Azerbaijan’s state-owned oil and gas company SOCAR and French petroleum company TotalEnergies own 50% each in the Absheron field.
Under the terms of the agreement, ADNOC will purchase a 15% stake each from SOCAR and TotalEnergies, leaving them with a 35% stake each.
ADNOC said that its investment in the Caspian region will support its growth in the international gas market and strengthens the energy partnership between the UAE and Azerbaijan.
ADNOC low carbon solutions and international growth executive director Musabbeh Al Kaabi said: “With global gas demand expected to steadily increase over the coming decades, ADNOC will continue to responsibly meet the world’s energy needs by developing and producing natural gas from world-class assets such as Absheron.
“We believe this strategic partnership with SOCAR and TotalEnergies, unlocks the potential of the Caspian region for decades to come and complements a broader energy collaboration between the UAE and Azerbaijan that will accelerate the growth of the global renewable energy sector, as both countries take bold steps to transition towards a lower-carbon future.”
Upon completion of the transaction, ADNOC will own a 30% participating interest in the Absheron field, with SOCAR and TotalEnergies holding 35% stakes, respectively.
ADNOC said that the strategic partnership with SOCAR will enhance the partnership with TotalEnergies and provides a route into international gas markets in Europe and Central Asia.
The transaction further extends and solidifies the strategic bilateral energy partnership between the UAE and Azerbaijan, said the Abu Dhabi company.
Furthermore, ADNOC and SOCAR have signed a Memorandum of Understanding (MoU) to collaborate across renewable energy, low-carbon solutions and upstream projects in the UAE, Azerbaijan and abroad.
SOCAR President Rovshan Najaf added: “Azerbaijan’s favourable investment climate offers conducive conditions for foreign investors in the energy sector. This particular deal underscores our commitment to strengthening the relations with our partners and reaffirms Azerbaijan’s position as a reliable partner in the energy sector.”
TotalEnergies exploration and production president Nicolas Terraz said: “TotalEnergies is pleased to welcome ADNOC, one of its strategic partners, into the Absheron gas field, where production of the first phase started in early July, and which offers a significant further development potential to meet the growing gas demand.”