Abu Dhabi National Oil Company (ADNOC) has acquired a 30 percent equity stake in the Absheron gas and condensate field in the Caspian Sea.
This follows a strategic transaction with the State Oil Company of Azerbaijan (SOCAR) and French company TotalEnergies, who each held a 50 percent stake in the project.
Following ADNOC’s investment, SOCAR and TotalEnergies holdings will come down to 35 percent each. Financial details of the transaction are not being disclosed and completion of the transaction is subject to customary regulatory approvals.
ADNOC’s entry into the Caspian region not only reinforces the energy partnership between the UAE and Azerbaijan, it also enables the company to build a major footprint in a region with prolific natural resources and significant growth potential. It will facilitate a route into attractive international growth markets for gas in Europe and Central Asia.
As the world transitions to a low-carbon energy system, natural gas will play a crucial role as a transition fuel. The transaction 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.
ADNOC’s global gas commitment
Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC, commented: “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 unlocks the potential of the Caspian region for decades to come and complements a broader energy collaboration between the UAE and Azerbaijan.”
SOCAR President Rovshan Najaf said: “Azerbaijan’s favourable investment climate offers conducive conditions for foreign investors in the energy sector. This deal underscores our commitment to strengthening the relations with our partners. We are excited to embark on this journey with ADNOC and TotalEnergies, building upon our shared vision and complementary strengths.”
Production of the first phase started in early July in Absheron gasfield.
ADNOC and SOCAR also signed a Memorandum of Understanding 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.
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