ADNOC Concludes First Global Gas Deal with Azerbaijan
Abu Dhabi National Oil Company Adnoc has agreed to buy a 30% stake in the Absheron gas field in the Caspian Sea, the state company said in a statement. Azerbaijan’s state oil company Socar and its French partner TotalEnergies SA will sell Abu Dhabi’s national oil company Adnoc a 15% stake in the Absheron gas condensate field project in the Caspian Sea. The parties did not disclose financial terms.
The largest oil producer in the United Arab Emirates is buying a stake in a natural gas field in Azerbaijan, marking the company’s first major international purchase of hydrocarbon exploration and production assets. Public and private oil producers are increasingly developing gas assets in an effort to meet growing global demand for energy and consumer goods with fuels that burn cleaner than crude oil. The gas is used in power plants and in chemical processes to produce plastics and other materials.
The reserves of the Absheron field are estimated at 300 billion m3 of gas, but it is possible that they are much more.
This Adnoc deal with Azerbaijan is the first step on the way to production abroad. Adnoc also made an offer with BP Plc to buy an Israeli gas project and bought stakes in European chemical and energy companies from another Abu Dhabi state-owned firm, Mubadala Investments Co.
The first phase of production at the Absheron gas condensate field began in early July. Total and Socar held an equal 50% stake in the project prior to the current deal, which is still subject to regulatory approval. Now the share of Total and Socar will be 35% each.
The UAE is already working on solar energy projects in Azerbaijan with state-owned renewable energy producer Masdar.
