Strategic partnership with SOCAR and long-standing partner TotalEnergies to create a substantial gas position enabling strong future growth potential in the Caspian region. Image Credit: Shutterstock

Dubai: Abu Dhabi National Oil Company (ADNOC) said on Friday it would acquire a 30 per cent equity stake in the Absheron gas and condensate field in the Caspian Sea.

The financial details of the transaction have not been disclosed yet.

Upon completion, pending customary regulatory approvals, ADNOC will hold a 30 per cent participating interest in Absheron, while SOCAR and TotalEnergies will retain 35 per cent stakes each. The strategic partnership with SOCAR also enhances ADNOC's longstanding collaboration with TotalEnergies, who previously held a 50 per cent share alongside SOCAR in Absheron.

Read more

This venture opens up opportunities for ADNOC to expand significantly in a region with abundant natural resources and substantial growth potential, providing access to promising international gas markets in Europe and Central Asia.

“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,” said Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC. “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.”

As part of the expanding partnership, ADNOC and SOCAR signed a Memorandum of Understanding (MoU) to evaluate potential areas of collaboration in renewable energy, low-carbon solutions, and upstream projects in the UAE, Azerbaijan, and internationally.

“Azerbaijan’s favourable investment climate offers conducive conditions for foreign investors in the energy sector,” said SOCAR President Rovshan Najaf. “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”

“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.