Absheron Gas Field : ADNOC, SOCAR, and TotalEnergies announce strategic transaction

The Abu Dhabi National Oil Company (ADNOC) is set to acquire a 30% equity stake in the producing Absheron gas and condensate field located in the Caspian Sea. This significant move for a stake in the Absheron Gas Field forms part of ADNOC’s efforts to tap into the international gas market and solidifies the energy relationship between the United Arab Emirates (UAE) and Azerbaijan.

Details of the Acquisition

Upon regulatory approval and transaction completion, ADNOC will hold a 30% interest in the Absheron Gas Field. The State Oil Company of Azerbaijan (SOCAR) and TotalEnergies will own 35% stakes respectively. This venture, which increases ADNOC’s existing partnership with TotalEnergies, allows ADNOC to establish a substantial footprint in a region renowned for its abundant natural resources and high growth potential. The deal will open pathways into attractive growth markets for gas in Europe and Central Asia.

Strengthening the Bilateral Energy Partnership

This landmark transaction amplifies the strategic energy partnership between the UAE and Azerbaijan. As the world pivots towards a low-carbon energy system, this investment positions ADNOC as a key player in the supply of lower-carbon energy. The transaction aligns with ADNOC’s collaboration with Masdar to develop 10GW of renewable energy capacity through solar, onshore and offshore wind, and green hydrogen in partnership with SOCAR.

Leaders Comment on the Strategic Partnership

Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth at ADNOC, commented on the transaction. He expressed that with the anticipation of an increase in global gas demand in the coming decades, ADNOC aims to fulfill this need by developing and producing natural gas from world-class assets like Absheron. He believes this strategic alliance with SOCAR and TotalEnergies will unlock the potential of the Caspian region for years to come and contribute to a broader energy collaboration between the UAE and Azerbaijan.

SOCAR President Rovshan Najaf also expressed excitement about the partnership, underscoring Azerbaijan’s commitment to strengthening relations with its partners and asserting the country’s position as a reliable partner in the energy sector. Nicolas Terraz, President, Exploration & Production at TotalEnergies, welcomed ADNOC into the Absheron gas field and discussed its significant development potential to meet growing gas demand.

Expansion Plans and MoU Signing

The strategic investment in the Absheron Gas Field underpins ADNOC’s growth strategy and leverages its strong record in successfully developing large gas projects to meet the increasing global demand for lower-carbon energy. The first gas from the Absheron field was delivered successfully in early July 2023.

In light of their expanding partnership, ADNOC and SOCAR signed a Memorandum of Understanding (MoU), planning to explore potential areas of collaboration across renewable energy, low carbon solutions, and upstream projects in the UAE, Azerbaijan, and internationally.