ADNOC expands presence in Caspian Sea with Absheron Investment 

Under the legal guidance of ADNOC’s chief legal counsel, Salem Mohammed Al Darei (pictured), Abu Dhabi National Oil Company (ADNOC) has taken a significant step towards expanding its presence in the international gas market by acquiring a 30% equity stake in the Absheron gas and condensate field in the Caspian Sea. In a strategic transaction, ADNOC, the State Oil Company of Azerbaijan (SOCAR), and TotalEnergies have strengthened their energy partnership and set their sights on new growth opportunities. 

With this investment, ADNOC solidifies its position as a key player in the global energy landscape, further cementing its long-standing partnership with TotalEnergies and forging a new alliance with SOCAR. Under the agreement, ADNOC will hold a 30% participating interest in the Absheron gas field, while SOCAR and TotalEnergies will each maintain a 35% stake. 

The deal will not only create a substantial growth position for ADNOC in the Caspian region but also provide a gateway to lucrative international gas markets in Europe and Central Asia. The financial details of the transaction have not been disclosed. 

The partnership underscores the UAE’s commitment to the energy transition agenda, recognizing the crucial role of natural gas as a key transition fuel. As the world moves towards a low-carbon energy system, ADNOC’s investment in Absheron aligns with its goal to become a reliable supplier of lower-carbon energy. Additionally, the transaction complements ADNOC’s ongoing investment in renewable energy, with plans to develop 10 GW of capacity from solar, onshore and offshore wind, and green hydrogen in collaboration with SOCAR. 

ADNOC and SOCAR have also signed a Memorandum of Understanding (MoU) to explore potential collaborations in renewable energy, low-carbon solutions, and upstream projects both in the UAE and Azerbaijan, as well as on an international scale. This forward-looking partnership seeks to leverage each company’s expertise to drive sustainable energy solutions and further propel the energy transition agenda. 

The transaction is subject to customary regulatory approvals, and upon completion, ADNOC’s entry into the Absheron project is expected to strengthen energy ties between the UAE and Azerbaijan, fueling future growth and advancements in the global energy landscape.