ADNOC's XRG and Partners Commit to Absheron Gas Expansion
XRG, ADNOC's international investment arm, and its partners have committed to expanding Azerbaijan's offshore Absheron gas field, with production from the next phase expected in 2029. XRG says the investment is part of its effort to build overseas businesses using UAE energy expertise.
Omar Al Nuaimi
Production plans and field development
The partners announced their decision on September 26. At Absheron, about 100 kilometers southeast of Baku, the expansion is expected to make up to 5 trillion cubic feet of gas recoverable and increase daily gas output from 150 million to 600 million cubic feet.
TotalEnergies operates the gas and condensate field with a 35% interest, while Azerbaijan's state energy company SOCAR owns 35% and XRG owns 30%. TotalEnergies and XRG's Bassem Tadros confirmed the ownership structure, with Tadros doing so in an interview published October 27, 2026.
TotalEnergies estimates Absheron's recoverable gas reserves at approximately 140 billion cubic meters. Its Full Field Development plan calls for total field output to reach 6 billion cubic meters of gas annually, along with 47,000 barrels of condensate per day.
The development will use four subsea wells connected by an undersea pipeline to a new, fully electrified processing plant onshore, according to TotalEnergies. The company puts the project's Scope 1 and 2 greenhouse gas emissions intensity at below 4 kilograms of CO2 equivalent per barrel of oil equivalent.
Absheron was discovered in 2011, and its initial development phase received approval in 2018, TotalEnergies says. Production began in 2023, with that phase supplying Azerbaijan's domestic customers.
Gas sales secured before the expansion decision
Before committing to the expansion, the partners secured a long-term buyer through an agreement with Türkiye's BOTAŞ. SOCAR, TotalEnergies, XRG and BOTAŞ signed the gas sales and purchase agreement on June 1, 2026, during Baku Energy Week, Reuters reported.
In that report, Reuters cited a SOCAR official who said production was expected to start in 2029 and exceed 4 billion cubic meters annually. About half of that output was expected to go to the Turkish market under the agreement.
The expansion's gas is intended for buyers in Azerbaijan and Türkiye, using pipelines linked to broader European markets. Tadros, XRG's Director of Asset Management, told Trend News Agency in the October 27 interview that the BOTAŞ deal provides an outlet for future Absheron supply to Türkiye and potentially as many as 16 export markets.
XRG also owns an interest in the Southern Gas Corridor. The roughly 3,500-kilometer pipeline network transports Azerbaijani gas across Georgia and Türkiye toward Europe. Tadros said it currently supplies regional and European markets with more than 25 billion cubic meters of gas a year.
XRG's overseas investment strategy
The Absheron stake was agreed in August 2023 and subsequently transferred to XRG. ADNOC established XRG in November 2024, organizing its overseas investments into three businesses: International Gas, Global Chemicals and Energy Solutions.
XRG describes its role in international projects as extending beyond the provision of capital. Drawing on ADNOC's experience, it works with partners on development plans, costs and customer needs. The company says Emirati professionals participating in those projects bring knowledge gained from global partners back to the UAE.
"We want to turn UAE expertise into businesses that create lasting value for the country, while building skills and partnerships for the future," said Ali Al Hammadi, Asset Management Manager for International Gas at XRG.
The company also seeks closer relationships with countries and businesses outside the Emirates. Al Hammadi said overseas investment does not replace domestic activity: "Investing abroad complements the work continuing at home."
