New investor enters Absheron gas-condensate field

A signing ceremony was held between the State Oil Company of Azerbaijan Republic (SOCAR), TotalEnergies, and Abu Dhabi National Oil Company (ADNOC), Report informs, citing SOCAR.

The event was attended by the Minister of Economy of the Republic of Azerbaijan and the Chairman of SOCAR`s Supervisory Board Mikayil Jabbarov, SOCAR President Rovshan Najaf, President of TotalEnergies Exploration and Production, Nicolas Terraz, and Executive Director of ADNOC for Low Carbon Solutions and International Growth Musabbeh Al Kaabi.

Delivering welcoming remarks, 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.

Subsequently, an agreement was signed for the sale of 30% participating interest in the Absheron gas-condensate field by SOCAR, TotalEnergies and ADNOC.

Upon completion of this transaction, ADNOC will acquire a 30% interest while both SOCAR and TotalEnergies hold a 35% interest each.

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 B.V.). The first gas from Absheron was achieved early July 2023.

Besides the acquisition, SOCAR and ADNOC also signed a Memorandum of Understanding. The signed document envisages the participation of SOCAR in upstream projects in Abu Dhabi and the respective support by ADNOC. The Parties also will explore potential areas of collaboration with respect to oil and gas investment opportunities in the third countries, as agreed by both Parties and cooperate in the field of renewable energy and low-carbon solutions.