Skip to main content

UAE’s ADNOC buys stake in Azerbaijan gas field

The move follows a wind and solar energy deal between an Emirati firm and Azerbaijan.
A picture shows the headquarters of UAE's state oil company ADNOC in Dubai on July 27, 2022.

The United Arab Emirates’ state-owned oil energy company announced on Friday a major investment in Azerbaijan, further demonstrating the UAE’s commitment to gas amid its push toward renewable energy.

The Abu Dhabi National Oil Company (ADNOC) signed a deal with Azerbaijan’s state energy company, SOCAR, and France’s TotalEnergies to acquire a 30% stake in the Absheron gas field, in the Caspian Sea. After the transaction, SOCAR and TotalEnergies will each own a 35% stake in the field, ADNOC said in a press release.

"ADNOC’s investment into the Caspian region aims to create a substantial growth position as it enters the international gas market, and reinforces the energy partnership between the United Arab Emirates (UAE) and Azerbaijan,” said the company.

ADNOC executive Musabbeh Al Kaabi added that the move is in response to the rising global demand for gas, according to the release.

ADNOC did not disclose the financial terms of the acquisition.

Why it matters: The deal represents ADNOC’s growing interest in investment outside the UAE. In March, ADNOC and British Petroleum (BP) made an offer to buy a stake in Israel’s NewMed Energy. ADNOC also bought a stake in the Austrian oil and gas firm OMV from the UAE’s sovereign wealth fund, Mubadala, in December. The Azerbaijan deal is ADNOC’s first investment in production outside the UAE, according to Bloomberg.

The agreement also demonstrates the UAE’s commitment to gas although the Gulf state continues to pursue diversification, renewable energy and the like. In January, ADNOC said it had allocated $15 billion to various forms of green technology, including carbon capture. ADNOC has also worked previously with TotalEnergies to this end, with the two entities signing a cooperation deal on carbon capture last year.

In November, the UAE will host the United Nations Climate Change conference, COP28.

Azerbaijan is already tied to the UAE's renewable energy push. In June of last year, the Emirate's government-owned renewable energy company Masdar signed a deal to develop wind and solar energy projects in Azerbaijan.

Know more: Gulf states are increasingly using renewable energy in oil and gas production processes, and the UAE is particularly interested in developing solar and hydrogen energy, as Gulf scholar Karen Young wrote in a memo for Al-Monitor PRO last month.

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Already a Member? Sign in


The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.


What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial
What's included:
Our Expertise

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

We also offer team plans. Please send an email to and we'll onboard your team.

Already a Member? Sign in