Abu Dhabi National Oil Company (ADNOC), Azerbaijan National Oil Company (SOCAR) and TotalEnergies today announced a strategic transaction that will see ADNOC expand its 30% gas and Absheron condensate assets in the Caspian Sea.
ADNOC expands its assets in the Caspian Sea region to meet gas demand
ADNOC’s investment in the Caspian Sea region is aimed at strengthening its growth position in the international gas market and consolidating the energy partnership between the United Arab Emirates (UAE) and Azerbaijan. Financial details of the transaction were not disclosed. On completion of the transaction, which is subject to the usual regulatory approvals, ADNOC will hold a 30% stake in Absheron, while SOCAR and TotalEnergies will each hold a 35% stake. This strategic partnership with SOCAR also strengthens the long-standing collaboration between ADNOC and TotalEnergies, which previously held a 50% stake alongside SOCAR in Absheron.
This partnership will enable ADNOC to develop a significant presence in a region endowed with abundant natural resources and significant growth potential, facilitating access to attractive international gas markets in Europe and Central Asia. This historic transaction extends and further consolidates the bilateral strategic energy partnership between the United Arab Emirates and Azerbaijan. As the world transitions to a low-carbon energy system, natural gas will play a vital role as a transition fuel, and this investment strengthens ADNOC’s position as a reliable supplier of low-carbon energy.
The transaction also completes ADNOC’s investment via Masdar to develop 10 GW of renewable energy capacity. Through solar energy, onshore and offshore wind power, and green hydrogen, in collaboration with SOCAR. This supports the shared energy transition agenda of both nations.
SOCAR and TotalEnergies consolidate their partnership with ADNOC in the Absheron project
Commenting on the transaction, Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC, said, “With global gas demand predicted to grow steadily 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 Sea region for decades to come and completes 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 to a low-carbon future.”
SOCAR Chairman Rovshan Najaf added: “Azerbaijan’s favorable investment climate offers the right conditions for foreign investors in the energy sector. This particular transaction underlines our commitment to strengthening our relationships with our partners, and confirms Azerbaijan’s position as a reliable partner in the energy sector. We are delighted to embark on this journey with ADNOC and TotalEnergies, building on our shared vision and complementary strengths.”
“TotalEnergies is delighted to welcome ADNOC, one of its strategic partners, to the Absheron gas field, where production from the first phase began in early July, offering significant development potential to meet growing gas demand,” said Nicolas Terraz, President, Exploration & Production at TotalEnergies.
First success for ADNOC with Absheron gas delivery in July 2023
ADNOC’s strategic investment in the world-class gas basin strengthens its international position and growth. It meets the growing demand for low-carbon energy. ADNOC, thanks to its responsible track record in gas projects, is positioned to play a role in the energy transition.
In July 2023, the first Absheron gas was successfully delivered. ADNOC and SOCAR have also signed a memorandum of understanding to evaluate potential areas of collaboration in renewable energies. Low-carbon solutions and upstream projects in the United Arab Emirates, Azerbaijan and internationally.
