ADNOC's XRG Set to Acquire Stake in Azerbaijan's Southern Gas Corridor

Azerbaijan’s Ministry of Economy and XRG, an international energy investment platform of the UAE-based ADNOC, signed the Heads of Terms.

The document, signed on the sidelines of the ADIPEC Exhibition and Conference in the UAE, concerns the potential acquisition of shares in Southern Gas Corridor CJSC, based on non-binding principal terms, The Caspian Post reports, citing the ministry.

The document was signed in accordance with the "Memorandum of Understanding on Investment in the Southern Gas Corridor between the Ministry of Economy of the Republic of Azerbaijan and XRG OJSC" exchanged within the framework of the meeting of President Ilham Aliyev with President Sheikh Mohamed bin Zayed Al Nahyan, who was visiting Baku in September of this year.

The agreement was signed by Mikayil Jabbarov, Minister of Economy and Chairman of SOCAR's Supervisory Board, and Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates, Executive Chairman and CEO of XRG.

This agreement has the potential to expand the cooperation between SOCAR and XRG, from gas production to reliable energy resource delivery to markets that seek to diversify energy supply in Europe. Additionally, it will contribute to strengthening the strategic partnership relations between Azerbaijan and the United Arab Emirates, enhancing the economic ties, expanding collaboration on energy projects, and further supporting the economic development of Azerbaijan, as well as its role as a reliable partner.

The signed document is the third agreement reached between SOCAR and XRG/ADNOC. The parties previously reached an agreement on the transfer of a stake in the SARB and Umm Lulu fields to SOCAR, as well as the sale of a stake in the Absheron gas and condensate field to ADNOC.

Southern Gas Corridor CJSC, which began operating in 2014, has a stake in gas production assets and a pipeline network with a total length of 3,500 kilometers. This infrastructure, with an annual transport capacity of up to 26 billion cubic meters, allows for the transportation of natural gas from the Caspian basin to Southern Europe via Türkiye.