Abu Dhabi Nationwide Oil Firm (ADNOC) has secured a 30 % fairness stake within the Absheron gasoline and condensate subject within the Caspian Sea following a cope with State Oil Firm or Azerbaijan (SOCAR) and TotalEnergies. Monetary particulars of the settlement stay undisclosed.
Upon completion of the transaction, which is topic to customary regulatory approvals, ADNOC mentioned in a media assertion that it’s going to personal a 30 % collaborating curiosity in Absheron, with SOCAR and TotalEnergies holding 35 % stakes, respectively.
Within the media assertion, ADNOC mentioned the deal will allow it to construct a serious footprint in a area with prolific pure sources and important development potential and famous that it solidifies the strategic bilateral power partnership between the UAE and Azerbaijan.
Because the world transitions to a low-carbon power system, pure gasoline will play a vital position as a key transition gas, with this funding additional cementing ADNOC’s place as a dependable provider of lower-carbon power, in response to the corporate.
The transaction additionally enhances ADNOC’s funding by Masdar to develop 10 GW of renewable power capability from photo voltaic, onshore and offshore wind, and inexperienced hydrogen in collaboration with SOCAR, supporting each nations’ shared power transition agenda, ADNOC said.
In June final yr, Masdar signed implementation agreements with Azerbaijan’s Ministry of Power to develop a renewable power program on a bilateral foundation, with a complete capability of 10 GW throughout a number of applied sciences.
Masdar additionally mentioned earlier this yr that it signed joint improvement agreements with SOCAR for onshore wind and photo voltaic tasks, and built-in offshore wind and inexperienced hydrogen tasks, with a complete mixed capability of 4 gigawatts (GW).
“With world gasoline demand anticipated to steadily improve over the approaching many years, ADNOC will proceed to responsibly meet the world’s power wants by creating and producing pure gasoline from world-class belongings resembling Absheron. We imagine this strategic partnership with SOCAR and TotalEnergies, unlocks the potential of the Caspian area for many years to come back, and enhances a broader power collaboration between the UAE and Azerbaijan that can speed up the expansion of the worldwide renewable power sector, as each international locations take daring steps to transition in the direction of a lower-carbon future,” mentioned Musabbeh Al Kaabi, Govt Director, Low Carbon Options and Worldwide Development at ADNOC.
“Azerbaijan’s favorable funding local weather presents conducive circumstances for international traders within the power sector. This specific deal underscores our dedication to strengthening the relations with our companions and reaffirms Azerbaijan’s place as a dependable associate within the power sector. We’re excited to embark on this journey with ADNOC together with TotalEnergies, constructing upon our shared imaginative and prescient and complementary strengths,” SOCAR President Rovshan Najaf added.
Based on ADNOC, the strategic funding on this world-class pure gasoline basin and asset base underpins its development technique and can leverage its track-record of creating giant gasoline tasks to fulfill rising world demand for lower-carbon power. First gasoline from Absheron was delivered in early July, 2023.
As a part of their increasing partnership, ADNOC and SOCAR additionally signed a Memorandum of Understanding that can see each corporations consider potential areas of collaboration throughout renewable power, low carbon options and upstream tasks within the UAE, Azerbaijan and internationally, ADNOC highlighted.
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