UAE Oil Giant Adnoc Makes First Major Global Gas Deal with Azeri Buy

UAE Oil Giant Adnoc Makes First Major Global Gas Deal with Azeri Buy

The biggest oil producer in the United Arab Emirates is buying a stake in a natural gas field in Azerbaijan, marking the company’s first major international purchase of upstream hydrocarbon assets.

Abu Dhabi National Oil Co. agreed to buy a 30% equity stake in the Absheron gas field in the Caspian Sea, the government-owned firm said in a statement. Azerbaijan’s state oil company Socar and its French partner TotalEnergies SA will each sell a 15% share of the project to Adnoc in the deal. The parties didn’t disclose financial terms.

Government and private oil producers have been increasingly developing gas assets as they look to meet growing global demand for enery and consumer products with a fuel that burns more cleanly than crude. Gas, which still emits carbon gas that contributes to global warming, can be burnt in power plants and also used in the chemical processes that create plastics and other materials that go into mobile phones, computers and auto parts.

“Adnoc’s investment into the Caspian region aims to create a substantial growth position as it enters the international gas market,” the statement said. “The partnership will enable Adnoc to build a major footprint in a region with prolific natural resources and significant growth potential, facilitating a route into attractive international growth markets for gas in Europe and Central Asia.”

Absheron is estimated to hold 300 billion cubic meters of gas, but the reserves are probably much bigger, according to Azerbaijain’s President Ilham Aliyev.


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