Adnoc’s International Upstream Drive Gets Liftoff

11 Aug 2023 Issue: 66 / 32 By: Jamie Ingram

Azerbaijan has presented Adnoc with the opportunity to get its overseas upstream strategy up and running. The UAE stands to increase its political influence in strategic regions on Europe’s doorstep through Adnoc’s international ventures.

Adnoc’s international upstream expansion plans have gained traction with the firm announcing on 4 August that it is to farm into Azerbaijan’s Absheron gas field alongside TotalEnergies and Azeri state firm Socar. With the planned joint Adnoc/BP purchase of a 50% stake in Israel’s NewMed Energy progressing slowly (MEES, 9 June), the Absheron deal will mark Adnoc’s first overseas upstream entry when it closes (MEES, 4 August).

The field is operated by Joint Operating Company of Absheron Petroleum (Jocap), which following the conclusion of the deal will be owned by TotalEnergies (35%), Socar (35%) and Adnoc (30%). The first phase started production in early July, and Socar says capacity is 1.46bcm/y of natural gas and 12,000 b/d of condensate. A second phase to significantly ramp up capacity up to 5bcm/y is under consideration. (CONTINUED - 1006 WORDS)