ADNOC subsidiary mulling new investment opportunities with SOCAR in Azerbaijan, internationally
BAKU. June 4 (Interfax) - XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), is studying prospects for expanding cooperation with the State Oil Company of Azerbaijan Republic (SOCAR), both in the country and internationally.
"We are, so to speak, analyzing the prospects for joint work both in Azerbaijan and in other regions. Our relationship with SOCAR is very strong. Therefore, if we identify significant opportunities outside the country, it is highly likely that we will pursue joint investments as proven partners. Regarding domestic projects, a number of deals are currently undergoing evaluation," the Report news agency reported a source at the company as saying.
"Our short-term priority is to expand our presence in Azerbaijan and increase investment in the country's economy. Transactions are moving forward, and we expect them to be successful," the source said.
The source also said that XRG expects to complete the acquisition of a 12.5% stake in Southern Gas Corridor CJSC (SGC) from the Azerbaijani Ministry of Economy by September 2026.
XRG signed a purchase-sale agreement with the ministry in February for a non-controlling interest in SGC. On November 5, 2025, XRG and the ministry signed a nonbinding agreement on the main terms of the acquisition of a stake in SGC. XRG confirmed at the time that it would acquire a stake in SGC and thus expand its presence in the Caspian.
XRG's assets in the Caspian now include a 30% stake in a project with SOCAR to develop the Absheron gas condensate field, and a 38% stake in in the Block 1 offshore gas concession in Turkmenistan. SOCAR, meanwhile, acquired 3% of the SARB and Umm Lulu concession from ADNOC in 2024.
SGC was founded in 2014 by the government as represented by the Economy Ministry with a 51% stake and SOCAR with 49%. At present, SOCAR owns 51% of the company and the ministry holds 49%.
SGC holds stakes in gas production assets and a network of pipelines stretching 3,500 km that can transport natural gas from the Caspian basin to Southern Europe through Turkey. The company's assets include an equity stakes in the Shah Deniz gas condensate field, the South Caucasus Pipeline, the Trans-Anatolian gas pipeline (TANAP), Trans Adriatic Pipeline (TAP) and Azerbaijan Gas Supply Company Limited.
Azerbaijan began transporting gas along the Southern Gas Corridor on December 31, 2020. In light of growing demand for Azerbaijani gas, there are plans to expand the corridor by increasing the capacity of the TANAP and TAP to at least double gas supplies to Europe from 8 billion cubic meters to 16 bcm per year by 2027.
