XRG Advances Caspian Energy Partnership with Absheron Expansion Investment
The UAE energy company has greenlit the next phase of its Azerbaijani offshore gas project, reinforcing bilateral ties and supporting regional energy security through substantial capital deployment.
XRG has announced its Final Investment Decision for the next phase of the Absheron offshore gas and condensate field development in the Caspian Sea, where the company maintains a 30% equity stake. The milestone underscores XRG’s strategic commitment to Azerbaijan whilst strengthening the longstanding partnership between the UAE and the nation.
The Absheron expansion represents a significant undertaking, expected to unlock approximately 5 trillion cubic feet of recoverable gas resources. The project is scheduled to commence production in 2029, with anticipated output reaching 600 million cubic feet of gas daily alongside 47,000 barrels of condensate per day. This phase builds upon the successful first iteration, which began operations in 2023, positioning Absheron amongst the Caspian Sea’s most substantial gas discoveries.
Mohamed Al Aryani, President of International Gas at XRG, emphasised the decision’s importance for both the company and Azerbaijan’s role in global energy markets. He highlighted how the investment reflects the robust relationship between the UAE and Azerbaijan, alongside shared aspirations to fully develop Caspian resources for sustained long-term benefit.
The project complements XRG’s existing involvement in the Southern Gas Corridor, a strategically critical 3,500-kilometre pipeline network linking Azerbaijani resources with Turkey, Southern Europe and more than 15 European nations. This infrastructure serves as a vital route to market access for current and future Caspian gas supplies, reinforcing the region’s contribution to international energy security.
XRG’s regional portfolio extends beyond Absheron, encompassing a 38% participating interest in Turkmenistan’s offshore Block I concession. Together, these investments demonstrate the company’s commitment to establishing a resilient, infrastructure-integrated gas platform across the Caspian region.
Beyond commercial operations, XRG supports Azerbaijan through educational initiatives, including a scholarship programme designed to broaden opportunities for Azerbaijani students and strengthen people-to-people connections between the UAE and Azerbaijan. This comprehensive approach reflects the company’s long-term dedication to the nation’s development and bilateral prosperity.
Source: WAM