The United Arab Emirates' largest oil producer is making the company's first major international hydrocarbon asset purchase by purchasing a stake in a gas field in Azerbaijan.
Abu Dhabi National Oil Co. In a statement, it was stated that an agreement was reached to purchase a 30 percent stake in the Absheron gas field in the Caspian Sea. Azerbaijan's state oil company Socar and its French partner TotalEnergies SA will each sell 15 percent of the project's shares to Adnoc under the agreement. The financial terms of the contract were not disclosed.
Government and private oil producers are increasingly building their gas assets as they seek to meet the growing global demand for energy and consumer products with a cleaner-burning fuel than crude oil.
The gas, which releases carbon gas, which still contributes to global warming, can be burned in power plants as well as used in chemical processes that create plastics and other materials that go into cell phones, computers and auto parts.