ADNOC, TotalEnergies, SOCAR partner on natural gas field offshore Azerbaijan
(WO) – Abu Dhabi National Oil Company (ADNOC), the State Oil Company of Azerbaijan (SOCAR) and TotalEnergies announced a strategic transaction that will see ADNOC acquire a 30% equity stake in the Absheron natural gas and condensate field in the Caspian Sea. ADNOC’s investment into the Caspian region aims to create a substantial growth position as it enters the international gas market and reinforces the energy partnership between the United Arab Emirates (UAE) and Azerbaijan.
ADNOC will own a 30% participating interest in Absheron, with SOCAR and TotalEnergies holding 35% stakes respectively. Entering into a strategic partnership with SOCAR also elevates ADNOC’s long-standing partnership with TotalEnergies, who until now had held a 50% share alongside SOCAR in Absheron. The partnership will enable ADNOC to build a major footprint in a region with prolific natural resources and significant growth potential, facilitating a route into attractive international growth markets for gas in Europe and Central Asia.
The landmark transaction further extends and solidifies the strategic bilateral energy partnership between the UAE and Azerbaijan. As the world transitions to a low-carbon energy system, natural gas will play a crucial role as a key transition fuel, with this investment further cementing ADNOC’s leading position as a reliable supplier of lower-carbon energy. The transaction also complements ADNOC’s investment through Masdar to develop 10 GW of renewable energy capacity from solar, onshore and offshore wind, and green hydrogen in collaboration with SOCAR, supporting both nations’ shared energy transition agenda.
“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,” said Nicolas Terraz, President, Exploration & Production at TotalEnergies.
The strategic investment in this world-class natural gas basin and asset base underpins ADNOC’s growth strategy and will leverage its strong track-record of successfully and responsibly developing large natural gas projects, to meet growing global demand for lower-carbon energy. First gas from Absheron was successfully delivered in early July, 2023.
As part of their expanding partnership, ADNOC and SOCAR also signed a Memorandum of Understanding (MoU), that will see both companies evaluate potential areas of collaboration across renewable energy, low carbon solutions and upstream projects in the UAE, Azerbaijan and internationally.