At the ADIPEC energy exhibition in the United Arab Emirates, Azerbaijan and the UAE signed a new cooperation agreement in the energy sector.
The document outlines the intent of XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), to acquire a stake in the Southern Gas Corridor CJSC.
According to Azerbaijan’s Ministry of Economy, the agreement builds on a Memorandum of Understanding exchanged in September during President Ilham Aliyev’s meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Baku.
The document was signed by Mikayil Jabbarov, Minister of Economy and Chairman of the Supervisory Board of SOCAR, and Dr. Sultan Ahmed Al Jaber, Executive Chairman and CEO of XRG.
The new agreement aims to expand cooperation between SOCAR and XRG, from gas production to the reliable delivery of energy resources to European markets seeking diversified supply routes. It also strengthens the strategic partnership between Azerbaijan and the UAE, particularly in energy, investment, and economic development.
This is the third major agreement between SOCAR and ADNOC/XRG. Earlier, the parties reached deals on SOCAR’s participation in the SARB and Umm Lulu oil fields and ADNOC’s acquisition of a stake in the Absheron gas-condensate field.
Founded in 2014, the Southern Gas Corridor CJSC holds assets in gas extraction and transportation with a 3,500-kilometer pipeline network capable of carrying up to 26 billion cubic meters of natural gas annually from the Caspian Basin to Southern Europe via Turkey.
