RIYADH: Abu Dhabi National Oil Co. has bought a 30 percent stake in Azerbaijan’s Absheron gas and condensate field in a further extension of bilateral energy partnership between the UAE and the Asian country.
The State Oil Company of Azerbaijan, known as SOCAR, and TotalEnergies both have 35 percent shares in the field.
The investment is part of ADNOC’s growth strategy to meet growing global demand for lower-carbon energy, and the first gas from Absheron was successfully delivered in early July 2023, according to press release from the firm.
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 internationally.
Musabbeh Al-Kaabi, executive director of low carbon solutions and international growth at ADNOC, said: “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.”
SOCAR President Rovshan Najaf praised Azerbaijan’s “favorable investment climate” for attracting foreign investors in the energy sector.
He added: “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. We are excited to embark on this journey with ADNOC along with TotalEnergies, building upon our shared vision and complementary strengths.”
In March, ADNOC offered with BP to jointly acquire 50 percent of Israeli offshore natural gas producer NewMed Energy for about $2 billion, marking their entry into Israel’s growing energy sector.
The firm has sharpened its focus on the gas market as competition for liquefied natural gas has ramped up following Russia’s invasion of Ukraine in February 2022, with Europe in particular needing large amounts to help replace gas piped from Russia.
ADNOC listed its gas business in March after raising $2.5 billion from an initial public offering, which was the world’s biggest in the first quarter.
