SOCAR, BOTAS, TotalEnergies, ADNOC sign new 15-year agreement for gas supplies from Absheron field
BAKU. June 1 (Interfax) - The State Oil Company of the Azerbaijan Republic (SOCAR), Turkey's BOTAS, France's TotalEnergies, and Abu Dhabi National Oil Company (ADNOC) have signed a new 15-year agreement for natural gas supplies from the Absheron field in the Azerbaijani sector of the Caspian Sea, Turkey's Energy Ministry posted on social media.
"A new 15-year agreement for natural gas supplies was signed between our national company BOTAS, SOCAR, TotalEnergies, and ADNOC on the sidelines of the Baku Energy Forum with the participation of Azerbaijani President Ilham Aliyev," the ministry said.
A total of 33 billion cubic meters of natural gas will be supplied to Turkey beginning in 2029 in connection with new production investments at the Absheron field under the agreement.
"This strategic step, which aligns with Turkey's vision of becoming a central country in the energy sector, will make a significant contribution to the energy security of our country, our region and Europe," the ministry said.
Turkish Energy Minister Alparslan Bayraktar has said Azerbaijan and Turkey signed a 15-year agreement on January 2, 2026 on supplies of 33 bcm of gas from the Absheron field in Azerbaijan's sector of the Caspian Sea, at a rate of 2.25 bcm per year starting in 2029 and continuing into the 2040s. The gas will be supplied through the Baku-Tbilisi-Erzurum pipeline.
The Absheron block is located 100 km from Baku at a depth of 500 meters. Joint Operating Company of Absheron Petroleum B.V. or JOCAP is developing the field. SOCAR and TotalEnergies initially had equal stakes in the project of 50% each. However, in August 2023, Abu Dhabi National Oil Company (ADNOC) acquired a 30% stake, buying 15% from each of SOCAR and TotalEnergies.
The term of the contract is 30 years and the contract area is 747 square km. According to initial estimates, reserves are 350 bcm of gas and 100 million tonnes of condensate.
TotalEnergies and SOCAR announced the start of the first phase of the Absheron field's development on July 10, 2023. Peak production of 1.5 bcm per year was achieved in 2024. Gas from the first stage is intended for Azerbaijan's domestic market.
The project will produce at least 4.5 billion cubic meters of gas per year after two stages of its development.
First gas production during the second stage of the Apsheron field development is planned for late 2028 - early 2029.
Stages 1 and 2 of the Shah Deniz field supply Turkey with gas produced in Azerbaijan at present.
