Adnoc awards concession interest to Azerbaijan’s Socar

Adnoc

Abu Dhabi National Oil Company (Adnoc) has signed an agreement to award a 3 percent interest in the Sarb and Umm Lulu offshore concession to State Oil Company of the Republic of Azerbaijan (Socar).

The agreement follows previous collaborations between the two companies, including Adnoc’s acquisition of a 30 percent equity stake in the Absheron gas and condensate field in the Caspian Sea.

In addition, the companies have a collaboration pact for the development of low-carbon energy technologies, including hydrogen and geothermal.

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The award supports Adnoc’s strategy of leveraging strategic partnerships and advanced technologies to maximise the value of Abu Dhabi’s energy resources, said the oil company’s upstream executive director, Abdulmunim Saif Al Kindy.

“This is our first international upstream investment,” said Socar president Rovshan Najaf.

“We are committed to advance our energy partnership with Adnoc even further and continue cooperating in many more projects of mutual interest.”

The value was the deal was not given. 

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Bloomberg reported last month that Adnoc will likely reach its 5 million barrel per day (bpd) oil production capacity expansion by the end of next year or early 2026.

The state-backed oil producer’s board approved in November 2022 a five-year business plan and capital expenditure of AED550 billion ($150 billion) for 2023-2027 to enable the accelerated growth strategy.  

The UAE’s renewable energy company Masdar in January signed joint development agreements with Socar for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects.

The projects will have a total combined capacity of 4 gigawatts.