New Investor Enters Absheron Gas-Condensate Field
(MENAFN- AzerNews) A signing ceremony was held between the State Oil Company of
Azerbaijan Republic (SOCAR), TotalEnergies, and Abu Dhabi National
Oil Company (ADNOC), Azernews reports, 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 favorable
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 favorable 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
kilometers 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
in 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.
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