Adnoc awards 3% stake in Sarb and Umm Lulu concession to Azerbaijan’s Socar

Abu Dhabi energy company holds a 57% stake in the oil fields following the deal

Adnoc is boosting collaboration with Azerbaijan's Socar. Photo: Adnoc
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The UAE's Adnoc has awarded a 3 per cent stake in the Sarb and Umm Lulu offshore concession to Azerbaijan’s energy company Socar, amid growing energy ties between the two countries.

Following the deal, Adnoc holds a 57 per cent stake in Sarb and Umm Lulu oil fields, while Austria’s OMV and French energy major TotalEnergies have a stake of 20 per cent each, Adnoc said.

The total value of the deal was not disclosed. The Sarb and Umm Lulu concession in Abu Dhabi includes two major offshore fields.

“This award supports Adnoc’s strategy to leverage strategic partnerships and advanced technologies to maximise value from Abu Dhabi’s energy resources to ensure a secure, reliable and responsible supply of energy,” Abdulmunim Al Kindy, Adnoc's upstream executive director, said.

The announcement comes amid deepening energy co-operation between the UAE and Azerbaijan.

Last year, Adnoc bought a 30 per cent stake in Azerbaijan's Absheron gas and condensate field in the Caspian Sea, as part of its strategic growth plans and entry into the international gas market.

It is also involved in the development of renewable projects in Azerbaijan through clean energy company Masdar.

Last year, Masdar signed agreements with Socar to develop renewable energy projects with a total capacity of 4 gigawatts in the Central Asian Republic. In October, Masdar inaugurated the 230-megawatt Garadagh Solar Park in Azerbaijan.

Rovshan Najaf, president of Socar, said the new concession deal is the company's first international upstream investment and it is committed to advancing its relationship with Adnoc "even further and continue co-operating in many more projects of mutual interest".

Adnoc is also focusing on expanding in other markets globally. Earlier this month, it bought a 10 per cent stake in Portuguese energy company Galp’s Area 4 concession of the Rovuma Basin in Mozambique, marking its first investment in the African country.

The acquisition will entitle Adnoc to a share of the liquefied natural gas production from the concession, which has a combined production capacity of more than 25 million tonnes per annum, the Abu Dhabi-based energy company said.

Adnoc also acquired a 11.7 per cent stake in phase one of NextDecade’s Rio Grande LNG project in Texas, marking its first investment in the US.

The energy company, responsible for almost all of the UAE’s oil production, is looking to position itself as a major player in the LNG market, as demand for the supercooled fuel is projected to grow over the next few decades.

Updated: May 31, 2024, 10:02 AM