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Abu Dhabi’s ADNOC to Acquire 30% Stake in Absheron Gas Field

The sun rises over the headquarters of the Abu Dhabi National Oil Co. headquarters that dominates the skyline in Abu Dhabi, United Arab Emirates, on Nov. 7, 2016. (AP)
The sun rises over the headquarters of the Abu Dhabi National Oil Co. headquarters that dominates the skyline in Abu Dhabi, United Arab Emirates, on Nov. 7, 2016. (AP)
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Abu Dhabi’s ADNOC to Acquire 30% Stake in Absheron Gas Field

The sun rises over the headquarters of the Abu Dhabi National Oil Co. headquarters that dominates the skyline in Abu Dhabi, United Arab Emirates, on Nov. 7, 2016. (AP)
The sun rises over the headquarters of the Abu Dhabi National Oil Co. headquarters that dominates the skyline in Abu Dhabi, United Arab Emirates, on Nov. 7, 2016. (AP)

Abu Dhabi National Oil Company (ADNOC) said on Friday it would acquire a 30% equity stake in the Absheron gas and condensate field in the Caspian Sea off the coast of Baku.

The agreement would see Azeri state oil company SOCAR and TotalEnergies each holding a 35% stake in the field.

TotalEnergies had announced first gas from Absheron in July. Prior to Friday's agreement, it held a 50% stake alongside SOCAR.

ADNOC's investment in Azerbaijan comes as part of a strategic plan to grow its international gas business.

The Abu Dhabi state oil giant in March offered, with BP, to jointly acquire 50% of Israeli offshore natural gas producer NewMed Energy for about $2 billion, marking their entry into Israel's growing energy sector.

ADNOC sharpened its focus on the gas market as competition for LNG has ramped up since the Russian invasion of Ukraine in February 2022, with Europe in particular needing large amounts to help replace gas piped from Russia.

"With global gas demand expected to steadily increase over the coming decades, ADNOC will continue to responsibly meet the world's energy needs by developing and producing natural gas from world-class assets such as Absheron," Musabbeh Al Kaabi, executive director of low carbon solutions and international growth at ADNOC, was quoted as saying in a statement.

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Oil Prices Fall as Demand Concerns Overshadow Libyan Export Halt

FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)
FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)
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Oil Prices Fall as Demand Concerns Overshadow Libyan Export Halt

FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)
FILE - The drilling rig of the Kingfisher oil field, operated by China National Offshore Oil Corporation (CNOOC), is seen on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda, File)

Brent oil prices fell on Tuesday as sluggish economic growth in China, the world's biggest crude importer, increased worries about demand that overshadowed the impact of the halt of production and exports from Libya.
Brent crude futures were down 17 cents, or 0.2%, to $77.35 a barrel by 0620 GMT, Reuters reported.
West Texas Intermediate crude futures, which did not settle on Monday because of the US Labor Day holiday, were up 50 cents, or 0.7%, at $74.05 a barrel.
"Oil remains under pressure given lingering Chinese demand concerns. Weaker-than-expected PMI data over the weekend would have done little to ease these worries," said Warren Patterson of ING, adding that demand jitters are offsetting the Libyan supply disruptions.
China's purchasing managers' index (PMI) hit a six-month low in August. On Monday, the country reported new export orders in July fell for first time in eight months, and new home prices grew in August at their weakest pace this year.
In Libya, oil exports at major ports were halted on Monday and production curtailed across the country, six engineers told Reuters, continuing a standoff between rival political factions over control of the central bank and oil revenue.
The country's National Oil Corp (NOC) declared force majeure on its El Feel oil field from Sept. 2. Total production had plunged to little more than 591,000 barrels per day (bpd) as of Aug. 28 from nearly 959,000 bpd on Aug. 26, NOC said. Production was at about 1.28 million bpd on July 20, the company said.
Still, some supply is set to return to the market as eight members of the Organization of the Petroleum Exporting Countries (OPEC) and affiliates, known as OPEC+, are scheduled to boost output by 180,000 bpd in October. The plan is likely to go ahead regardless of demand worries, according to industry sources.
OPEC planners may decide that the expected upcoming cuts in US interest rates and the Libyan outage provides space for the addition of more oil, RBC Capital analyst Helima Croft said in a note.
"In our view, a prolonged Libyan outage could support Brent prices" around $85 a barrel, even with additional supply coming onto the market in the fourth quarter, she said.