Strategic partnership with SOCAR and TotalEnergies to create a substantial gas position in the Caspian region
Abu Dhabi National Oil Company (ADNOC) recently announced a strategic transaction that will see ADNOC acquire a 30% equity stake in the Absheron gas and condensate field in the Caspian Sea.
Upon completion of the transaction, which is subject to customary regulatory approvals, ADNOC will own a 30% participating interest in Absheron, with SOCAR and TotalEnergies holding 35% stakes respectively. Entering a strategic partnership with SOCAR also elevates ADNOC’s long-standing partnership with TotalEnergies, who until now had held a 50% share alongside SOCAR in Absheron.
The partnership will enable ADNOC to build a major footprint in a region with prolific natural resources and significant growth potential, facilitating a route into attractive international growth markets for gas in Europe and Central Asia.
The landmark transaction further extends and 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 leading position as a reliable supplier of lower-carbon energy.
Unlocking potential
“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,” commented Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth, ADNOC.
“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,” remarked Rovshan Najaf, President, SOCAR.
“TotalEnergies welcomes 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,” stated Nicolas Terraz, President, Exploration & Production at TotalEnergies.
