SOCAR, TotalEnergies, ADNOC arm sign long-term gas deal

Azerbaijan's state oil company SOCAR has signed a long-term gas supply agreement with TotalEnergies, ADNOC's investment arm XRG and Turkish state pipeline operator BOTAŞ, locking in future exports from the Absheron offshore field in the Caspian Sea starting in 2029.

The deal, announced at Baku Energy Week, covers gas supplies from the next development stage of the Absheron field. A final investment decision on that stage is expected later this year.

"SOCAR has signed an agreement with XRG, with TotalEnergies and BOTAŞ on the supply of Azerbaijani gas to Turkey, which is a major development," SOCAR press secretary Emin Sevdimaliyev said.

"It will bolster the cooperation between different companies, Azerbaijan, Turkey, our foreign partners. And it also contributes to the importance of the Southern Gas Corridor."

The Southern Gas Corridor, which carries Caspian gas to Turkey and onward to Europe, has taken on greater significance since Russia's full-scale invasion of Ukraine in 2022 prompted European governments to accelerate efforts to cut dependence on Russian pipeline gas.

Azerbaijan has steadily increased its gas exports to Europe since then, with Brussels viewing Caspian supplies as part of broader diversification efforts.

Azerbaijan is already one of Turkey's main gas suppliers. The deal is expected to deepen that relationship as Ankara seeks to diversify its import sources.

For ADNOC, the deal marks another international expansion through XRG, its investment platform, showing Abu Dhabi's growing interest in securing positions across global gas infrastructure.

The Absheron field is located approximately 100 kilometres southeast of Baku and is estimated to contain around 350 billion cubic metres of natural gas and 100 million tonnes of condensate at a depth of 500 metres.