Dubai — Abu Dhabi National Oil Company (ADNOC) said on Friday it would acquire a 30% equity stake in the Absheron gas and condensate field in the Caspian Sea off the coast of Baku, Azerbaijan.
The agreement would see Azeri state oil company SOCAR and TotalEnergies, which had each previously held a 50% stake in the field, both retaining a 35% share.
TotalEnergies announced first gas from Absheron in July. The French energy group confirmed on Friday it and SOCAR had each sold a 15% interest in the field to ADNOC, though it declined to specify the price.
ADNOC’s investment in Azerbaijan comes as part of a strategic plan to grow its international gas business.
The Abu Dhabi state oil giant in March offered with BP to jointly acquire 50% of Israeli offshore natural gas producer NewMed Energy for about $2 billion, marking their entry into Israel’s growing energy sector.
ADNOC has sharpened its focus on the gas market as competition for LNG 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.
“With global gas demand expected to steadily increase over the coming decades, ADNOC will continue to responsibly meet the world’s energy needs,” Musabbeh Al Kaabi, executive director of low carbon solutions and international growth at ADNOC, said in a statement.
ADNOC listed its gas business in March after raising $2.5 billion from an initial public offering (IPO), which was the world’s biggest in the first quarter.
Reporting by Maha El Dahan in Dubai, Ron Bousso in London, and America Hernandez in Paris; Editing by Jason Neely, Robert Birsel and Jan Harvey – Reuters
Follow us on twitter
