Azerbaijan’s nationwide oil firm SOCAR has signed a long-term gasoline provide settlement with TotalEnergies, ADNOC’s funding arm XRG, and Turkish state pipeline operator BOTAŞ, securing future exports from the Absheron offshore area within the Caspian Sea beginning in 2029.
The contract, introduced at Baku Power Week, covers gasoline provides from the following stage of improvement of the Absheron area. A last funding choice at this stage is anticipated to be made later this yr.
“SOCAR has signed agreements with XRG, Complete Power and BOTAŞ for the availability of Azerbaijani gasoline to Turkey. It is a main improvement,” stated SOCAR spokesperson Emin Sevdimaliev.
“This can strengthen cooperation between varied firms, Azerbaijan, Turkey and international companions. It’s going to additionally contribute to the significance of the Southern Fuel Hall.”
The Southern Fuel Hall, which carries Caspian gasoline to Turkey after which Europe, has change into extra necessary since Russia’s full-scale invasion of Ukraine in 2022 and European governments accelerated efforts to cut back dependence on Russian pipeline gasoline.
Since then, Azerbaijan has steadily elevated gasoline exports to Europe, with Brussels viewing Caspian Sea provides as a part of broader diversification efforts.
Azerbaijan is already one in all Türkiye’s primary gasoline suppliers. The settlement is anticipated to deepen ties as Ankara seeks to diversify its import sources.
For ADNOC, the deal marks new worldwide growth by means of its funding platform, XRG, and indicators Abu Dhabi’s rising curiosity in securing a place the world over’s gasoline infrastructure.
The Absheron oil area is positioned roughly 100 kilometers southeast of Baku and is estimated to comprise roughly 350 billion cubic meters of pure gasoline and 100 million tons of condensed water at a depth of 500 meters.
