Abu Dhabi National Oil Company (ADNOC) has secured a 30 percent equity stake in the Absheron gas and condensate field in the Caspian Sea following a deal with State Oil Company or Azerbaijan (SOCAR) and TotalEnergies. Financial details of the agreement remain undisclosed.
Upon completion of the transaction, which is subject to customary regulatory approvals, ADNOC said in a media statement that it will own a 30 percent participating interest in Absheron, with SOCAR and TotalEnergies holding 35 percent stakes, respectively.
In the media statement, ADNOC said the deal will enable it to build a major footprint in a region with prolific natural resources and significant growth potential and noted that it 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 position as a reliable supplier of lower-carbon energy, according to the company.
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, ADNOC stated.
In June last year, Masdar signed implementation agreements with Azerbaijan’s Ministry of Energy to develop a renewable energy program on a bilateral basis, with a total capacity of 10 GW across multiple technologies.
Masdar also said earlier this year that it signed joint development agreements with SOCAR for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects, with a total combined capacity of four gigawatts (GW).
“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,” said Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth at ADNOC.
“Azerbaijan’s favorable 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. We are excited to embark on this journey with ADNOC along with TotalEnergies, building upon our shared vision and complementary strengths,” SOCAR President Rovshan Najaf added.
According to ADNOC, the strategic investment in this world-class natural gas basin and asset base underpins its growth strategy and will leverage its track-record of developing large gas projects to meet growing global demand for lower-carbon energy. First gas from Absheron was delivered in early July, 2023.
As part of their expanding partnership, 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, ADNOC highlighted.
To contact the author, email andreson.n.paul@gmail.com
