TotalEnergies and SOCAR take on ADNOC as partner in gas field off Azerbaijan

France’s energy giant TotalEnergies and its partner State Oil Company of the Republic of Azerbaijan (SOCAR) have inked a deal, which will enable each to sell a 15 per cent participating interest to the UAE’s ADNOC in a gas and condensate field in the Caspian Sea offshore Azerbaijan.

Thanks to this deal, TotalEnergies and SOCAR will each sell a 15 per cent participating interest in the Absheron gas field to ADNOC, subject to approval by the relevant authorities. Upon completion, TotalEnergies will own a 35 per cent interest in this gas field, alongside SOCAR (35 per cent) and ADNOC (30 per cent).

The Absheron gas and condensate field, which was recently brought on stream, is located around 100 km southeast of Baku in the Caspian Sea and operated by JOCAP (Joint Operating Company of Absheron Petroleum). The first phase of this field development connects a subsea production well to a new gas processing platform, which is linked to SOCAR’s existing facilities in Oil Rocks.

Nicolas Terraz, President, Exploration & Production at TotalEnergies, commented: “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.”

While confirming the deal to acquire a 30 per cent stake in the Absheron gas and condensate field, ADNOC explains that its investment into the Caspian region aims to create a substantial growth position as it enters the international gas market, and reinforces the energy partnership between the United Arab Emirates and Azerbaijan. However, the financial details of the transaction were not disclosed.

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

According to ADNOC, this 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 is expected to play a crucial role as a key transition fuel, thus, the UAE’s giant believes that this investment further cements its position as a reliable supplier of lower carbon energy.

In addition, it 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, SOCAR President, stated: “Azerbaijan’s favourable 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.”