Azerbaijan’s State Oil Company (SOCAR) signed an agreement with TotalEnergies and Abu Dhabi National Oil Company (ADNOC) regarding the Absheron gas-condensate field. Upon completion of this transaction, ADNOC will acquire a 30 per cent interest while both SOCAR and TotalEnergies hold a 35 per cent interest each.
The Minister of Economy Mikayil Jabbarov underscored the significance of the agreement, expressing confidence that the document will be a critical step in the future development of the Absheron project. He also highlighted that the energy sector of Azerbaijan has significantly bolstered the economic development of our country and the region. Apart from the natural resources, the Minister pointed out that the favourable investment environment plays a special role in attracting foreign investments to Azerbaijan.
This major acquisition is ADNOC’s first investment in an upstream asset outside of the United Arab Emirates (UAE) and yet another manifestation of the favourable investment conditions created for foreign investors in Azerbaijan. The deal will further strengthen the strategic relationship between the UAE and Azerbaijan and contribute to the latter’s position as a reliable gas supplier.
The Absheron gas-condensate field, located approximately 100 kilometres southeast of Baku in the Azerbaijani sector of the Caspian Sea, is operated by JOCAP (Joint Operating Company of Absheron Petroleum). The first gas from Absheron was achieved in early July 2023.
Besides the acquisition, SOCAR and ADNOC also signed a Memorandum of Understanding, according to which, the Parties will explore potential areas of collaboration with respect to oil and gas investment opportunities in the third countries and cooperate in the field of renewable energy and low-carbon solutions.