Adnoc's XRG Advances Strategic Absheron Gas Field Development in Azerbaijan

XRG, Adnoc's international energy investment unit, is expanding its gas portfolio with plans for the next phase of strategic field development in Azerbaijan. Announced during the Azerbaijan International Investment Forum in Baku on Saturday, the final investment decision for the Absheron offshore gas and condensate field was finalized alongside Azerbaijan's state oil company Socar and France's TotalEnergies.

XRG holds a 30 per cent stake in the venture, following an acquisition first announced in 2023. Socar and TotalEnergies each maintain a 35 per cent holding. While the specific investment value was not disclosed, production in the Caspian Sea field is projected to begin in 2029.

The project is expected to yield up to 600 million cubic feet (17 million cubic metres) of gas and 47,000 barrels of condensate daily. Recoverable gas resources at Absheron are estimated at up to five trillion cubic feet. Mohamed Al Aryani, president of XRG's international gas unit, noted that Azerbaijan continues to strengthen its position as a critical bridge connecting Caspian resources to international markets.

Launched in 2024 as an international lower-carbon energy and chemicals investment company with an enterprise value exceeding $80 billion, XRG has steadily grown its global asset portfolio. Recent moves include entering Venezuela's energy sector through an offshore natural gas project with BP and UCC Holding, partnering with Italy's Eni and Argentina’s YPF, and increasing its stake in the Rio Grande LNG project in the US.

Azerbaijan holds the world's 20th-biggest gas reserves at nearly 1.7 trillion cubic metres, with energy products comprising nearly 90 per cent of its total exports. Analysts emphasize that the country's strategic geographical position between the Caspian Sea, Central Asia, the Middle East, and Europe positions it as a vital full-service energy trading hub.