Emirati ADNOC acquires 30% stake in Absheron gas condensate field development project – SOCAR
The Abu Dhabi National Oil Company (ADNOC) has become a shareholder in the project to develop the Absheron gas condensate field in the Caspian Sea, having bought 15% of the shares from SOCAR (State Oil Company of Azerbaijan) and France’s TotalEnergies.
“The ceremony of signing an agreement on the acquisition by ADNOC of a 30% stake in the project from SOCAR and TotalEnergies took place in Baku on Friday. After the completion of the transaction, the shares of SOCAR and TotalEnergies in the Absheron project will each be 35%,” the SOCAR said in a statement. .
To date, SOCAR and TotalEnergies have equal shares in the Absheron project – 50% each.
SOCAR notes that this agreement will further strengthen the strategic relations between Azerbaijan and the UAE and will make a valuable contribution to the position of official Baku as a reliable supplier of natural gas.
“ADNOC’s first investment in a mining project outside the UAE in Azerbaijan is another confirmation of the favorable investment climate created for foreign investors in our country,” SOCAR said in a statement.
In addition, SOCAR and ADNOC also signed a Memorandum of Understanding.
“The document provides for participation of the State Oil Company of Azerbaijan in upstream projects in Abu Dhabi and appropriate support from ADNOC in this matter,” the information says.
According to SOCAR, the parties to the Memorandum, at the same time, will explore areas for potential cooperation in the fields of renewable sources and low-carbon solutions, as well as in the field of investment opportunities in the oil and gas sector of third countries, agreed by each of the two companies.
As previously reported, on July 10, 2023, TotalEnergies and SOCAR announced the start of production as part of the first phase of the development of the Absheron gas condensate field in the Caspian Sea.
The Absheron field is being developed by the Joint Operating Company of Absheron Petroleum B.V. (JOCAP) established by SOCAR Absheron and TOTAL E&P Absheron. The contract was signed for a period of 30 years. The contract area is 747 sq. km.
The Absheron block is located 100 km from Baku at a depth of 500 meters. In 2019, SOCAR and TOTAL completed drilling of the production and appraisal well “ABD-001” with a depth of 7411 meters at the “Absheron” field. According to the initial estimate, the reserves of the field amount to 300 billion cubic meters of gas and 100 million tons of condensate, and its development will be carried out in stages.
At the first stage, the volume of production will be 1.5 billion cubic meters per year. At its peak, the project can produce about 5 billion cubic meters of gas per year. The field will also produce about 10,000 barrels of condensate daily.
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