XRG Approves Absheron Expansion, Targeting First Gas From New Phase in 2029

XRG has sanctioned the next stage of development at the Absheron offshore gas and condensate field in the Caspian Sea, a step expected to unlock as much as 5 trillion cubic feet of recoverable gas.

Output from the field is targeted at 600 million cubic feet of gas a day alongside 47,000 barrels of condensate a day, beginning in 2029. Absheron sits roughly 100 kilometers southeast of Baku. XRG, the international energy investment company owned by Abu Dhabi's ADNOC, holds a 30% interest. Azerbaijan's SOCAR and France's TotalEnergies each hold 35%, with TotalEnergies serving as operator.

A base built since 2023

Absheron has been producing since 2023 under its first phase, which carries capacity of 1.5 billion cubic meters of gas a year and 12,000 barrels of condensate a day. Completing the full field is expected to bring total production to around 6 billion cubic meters of gas annually and the same 47,000 barrels a day of condensate. Start-up on that schedule is targeted for 2029.

The gas is destined for Azerbaijan's domestic market and for export to Türkiye, moving through infrastructure that already connects the country to European gas markets.

Together with SOCAR and TotalEnergies, we are investing in world-class resources and infrastructure that support energy security, create economic value and drive long-term growth. This decision also reflects the strong and enduring relationship between the UAE and Azerbaijan, and our shared ambition to unlock the full potential of the Caspian region for decades to come.

Mohamed Al Aryani, president of international gas at XRG, gave that assessment of the approval.

Wider Caspian holdings

The approval adds to a position XRG has been assembling across the Caspian. In February 2026 the company agreed to acquire an equity stake in Southern Gas Corridor CJSC, whose assets include a pipeline network of roughly 3,500 kilometers running from Azerbaijan through Georgia and Türkiye into Southern Europe. The system carries up to 26 billion cubic meters of gas a year. XRG has said the corridor opens routes to buyers in Azerbaijan, Georgia, Türkiye and Europe.

XRG also holds a 38% participating interest in the offshore Block I concession in Turkmenistan, where its partners are PETRONAS and Turkmenistan's Hazarnebit.

Taken together, the company describes those Azerbaijan investments and its other Caspian interests as pieces of an integrated gas platform that links upstream resources to established infrastructure and international markets.

XRG's entry into Absheron was first announced in August 2023, when ADNOC agreed to buy a 30% participating interest from TotalEnergies. Alongside the field expansion, the company has pointed to a scholarship program it funds for Azerbaijani students, aimed at education and skills development, as part of what it describes as a long-term commitment to the country.