Officials during the signing ceremony | Courtesy: ADNOC
Abu Dhabi National Oil Company (ADNOC), the State Oil Company of Azerbaijan (SOCAR), and TotalEnergies have announced a strategic transaction that will see ADNOC acquire a 30 percent equity stake in the Absheron gas and condensate field in the Caspian Sea.
ADNOC’s investment into the Caspian region intends to create a substantial growth position as it enters the international gas market and reinforces the strategic bilateral energy partnership between the UAE and Azerbaijan.
Upon completion of the transaction, ADNOC will own a 30 percent participating interest in Absheron, with SOCAR and TotalEnergies holding 35 percent stakes respectively.
According to the statement, 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.
Rovshan Najaf President – SOCAR
“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.”
Commenting on the transaction, Mr. Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC said that, “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.”
“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,” commented Mr. Nicolas Terraz, President of Exploration and Production at TotalEnergies.
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.
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