Baku, Azerbaijan: XRG, the international energy investment company backed by ADNOC, has approved the final investment decision (FID) for the next phase of development of the Absheron offshore gas and condensate field in Azerbaijan, where it holds a 30% stake.
Located in the Caspian Sea, the next phase is expected to unlock up to 5 trillion cubic feet of recoverable gas resources, with production targeted to begin in 2029.
Gas and condensate production targeted for 2029
According to XRG, production from the project is expected to reach up to 600 million cubic feet of gas per day, alongside up to 47,000 barrels of condensate per day.
The development follows the start of production from the first phase of the Absheron field in 2023 and represents a further step in the development of Azerbaijan’s offshore gas resources.
XRG has not disclosed the value of the investment associated with the final investment decision.
Partnership with SOCAR and TotalEnergies
XRG holds a 30% stake in the Absheron field, while SOCAR and TotalEnergies each hold a 35% interest.
The investment forms part of XRG’s broader expansion in the international gas sector, with the company building a portfolio across gas resources, infrastructure and export routes.
XRG’s portfolio in Azerbaijan also includes its interest in the Southern Gas Corridor, a pipeline network extending approximately 3,500 kilometres and connecting Azerbaijan with Turkey and Southern Europe.
XRG expands its Caspian energy portfolio
XRG’s regional investments extend beyond Azerbaijan. The company also holds a 38% participating interest in Block I, an offshore concession in Turkmenistan.
The company has said these investments form part of its strategy to build a diversified international gas portfolio and connect resources with infrastructure and access to global markets.
The Absheron investment decision adds to XRG’s international energy portfolio and expands its presence in the Caspian region.