XRG backs Azerbaijan gas field expansion

XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (Adnoc), has backed a major expansion of the Absheron gas and condensate field off the coast of Azerbaijan.

The investment for the next phase of the project was confirmed by XRG, which is expected to unlock up to 5 trillion cubic feet of recoverable gas resources, the UAE state-run Wam news agency reported.

A 30 percent stake in the concession was acquired by XRG in August 2023, giving the state-backed company a route to global gas markets in Europe and Central Asia.

French energy group TotalEnergies and Azerbaijan state oil company Socar each hold 35 percent in the Caspian Sea field.

Further reading:

• Adnoc investment arm XRG enters Venezuela gas sector
• XRG expands globally with stake in Argentine gas blocks
• Adnoc unit to buy Shell’s fuel stations in South Africa

Production is expected to start in 2029, with output hoped to reach 600 million cubic feet of gas per day plus 47,000 barrels of condensate.

The Adnoc unit is a partner in the Southern Gas Corridor, the 3,500km pipeline network that connects Azerbaijan with Turkey and more than 15 European countries, providing access to Caspian gas supplies.

XRG also holds a 38 percent participating interest in Turkmenistan’s offshore block I concession in the Caspian Sea.

In September 2025 Adnoc transferred its equity stakes in four Abu Dhabi-listed subsidiaries to XRG.