XRG, the international investment arm of ADNOC, is advancing the expansion of Azerbaijan’s Absheron gas and condensate field as its first international gas project, according to a report from the Emirates News Agency. The company holds a 30 percent stake in the development alongside SOCAR and TotalEnergies, with current output from the initial phase reaching approximately 1.5 billion cubic meters of gas annually. A final investment decision on the full-scale project is anticipated in the coming months, targeting first additional gas in August 2029. Azerbaijan’s Ministry of Energy data shows that the field produced 1.6 billion cubic meters in 2025, marking a 6.7 percent increase from the prior year.
The expanded development is projected to deliver more than 4 billion cubic meters of gas per year once operational, a significant increase that will support both domestic needs and exports, according to statements from project partners. XRG recently completed its acquisition of an equity stake in the Southern Gas Corridor, which transports up to 26 billion cubic meters of natural gas annually across a 3,500-kilometer network linking the Caspian to Europe. This infrastructure integration forms a key element of XRG’s strategy to connect upstream resources with established export routes. The Southern Gas Corridor includes shares in the Shah Deniz field as well as multiple pipelines spanning Azerbaijan, Georgia, Turkey and southern Europe.
Tolga Demir, XRG’s Azerbaijan country manager, said during the Baku Energy Week that the Absheron field currently produces about 4 million cubic meters of gas and 12,000 barrels of condensate daily from one well. He noted that the full-scale phase envisions three or four wells in total as part of the joint operating company’s plans. Demir added that XRG is completing its 12.5 percent stake in the Southern Gas Corridor, describing the corridor as a vital link that moves more than 25 billion cubic meters of gas each year. The remarks were made as part of discussions on gas markets and geopolitics.
The Absheron project lies around 100 kilometers from Baku in waters approximately 500 meters deep, with reserves estimated at 350 billion cubic meters of gas, according to field operator data compiled by industry analysts. Initial production from the first phase began in 2023 and has been dedicated primarily to Azerbaijan’s domestic market. The second phase, now moving toward investment commitment, will enable additional exports and reinforce the country’s role as a supplier to regional partners including Turkey, which has signed agreements for volumes from the field starting in 2029.
Mohamed Al Aryani, president of international gas at XRG, described the combined upstream and infrastructure position as a resilient platform connecting advantaged supply with growing demand, in an announcement tied to the Southern Gas Corridor transaction. XRG also maintains a 38 percent interest in Turkmenistan’s offshore Block I concession, which produces around 400 million cubic feet of gas per day. These Caspian assets complement XRG’s participation in other global LNG and gas projects, including developments in the United States, Egypt and Mozambique. The partnership with SOCAR extends across the gas value chain, building on earlier collaboration in both Azerbaijan and Abu Dhabi concessions.
Azerbaijan produced a total of 51.5 billion cubic meters of natural gas in 2025, up 2.4 percent from the previous year, with the Absheron field contributing to overall growth, according to the Ministry of Energy. The expansion aligns with broader efforts to diversify energy supplies amid European demand for non-Russian sources. XRG’s involvement underscores the deepening energy ties between the UAE and Azerbaijan, which have expanded through multiple agreements since XRG first entered the Absheron project in 2023.
