ADNOC to acquire 30% equity stake in Absheron gas field

Abu Dhabi National Oil Company (ADNOC) to acquire a 30 per cent equity stake in the Absheron gas and condensate field in the Caspian Sea.

It follows a strategic transaction between ADNOC, State Oil Company of Azerbaijan (SOCAR) and TotalEnergies.

Subject to regulatory approvals, the transaction will see ADNOC own a 30 per cent participating interest in Absheron, with SOCAR and TotalEnergies holding 35 per cent stakes, respectively.

ADNOC’s 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 UAE and Azerbaijan.

It will also 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.

Financial details of the transaction have not been disclosed.

"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," said Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC.

As part of their expanding partnership, ADNOC and SOCAR also signed a Memorandum of Understanding that will see both companies evaluate potential areas of collaboration across renewable energy, low-carbon solutions and upstream projects in the UAE, Azerbaijan and globally.