Four energy companies have formalised a supply arrangement for gas from the Absheron field in Azerbaijan. The agreement was signed during Baku Energy Week by SOCAR, TotalEnergies, ADNOC International and Turkey’s state gas importer BOTAS.
Signing the accord were SOCAR President Rovshan Najaf; Abdulvahit Fidan, Chairman and General Manager of BOTAS; Martino Panizzi, senior vice president for exploration and production Europe at TotalEnergies; and Mohammed Al Aryani, President International Gas at XRG. The signatures completed a natural gas sales and purchase agreement that covers production from the Absheron development.
Project timeline and production targets are outlined in the agreement. A final investment decision for the second phase of the Absheron project is anticipated this year. Annual gas deliveries are scheduled to commence in 2029, with production expected to climb above 4 billion cubic metres per year once the phase is in operation.
Under the terms reported by a SOCAR official, about half of the planned output will be allocated to the Turkish market. The allocation underscores the role of the agreement in directing a significant portion of Absheron’s gas to regional demand centres.
The Absheron field is described as one of Azerbaijan’s largest gas-condensate discoveries. The planned second development phase is intended to increase the country’s export capacity and to play a part in supporting regional energy security, according to the statements accompanying the signing.
Officials involved in the transaction framed the agreement as a contractual step aligned with the project’s schedule and its broader contribution to export capability. Beyond the signing, the next major milestone identified is the final investment decision for the second phase, with subsequent steps tied to the project timeline that leads to first annual production in 2029.
Context and implications
While the agreement sets out sales and supply arrangements, the pace and success of the project remain dependent on execution of the planned second phase and the timing of the final investment decision expected this year. The commitment to supply roughly half the output to Turkey highlights immediate market destinations but also the concentration of contracted off-take in a single regional market.