BAKU, Azerbaijan, October 27. Gas from Azerbaijan's Absheron field could potentially reach 16 export markets, Bassem Tadros, Director, Asset Management, XRG, said in an exclusive interview with Trend on October 27.
XRG is the international investment arm of Abu Dhabi National Oil Company (ADNOC), the UAE’s state-owned oil and gas company, which holds a share in the Absheron field.
"Absheron combines a substantial gas resource with partners committed to its long-term development. SOCAR, Azerbaijan’s state energy company, and TotalEnergies each hold 35%; TotalEnergies is the operator, and XRG holds 30%. This brings together Azerbaijan’s deep local expertise, international development capability and long-term capital. The first phase has supplied Azerbaijan’s domestic market since 2023," he said.
Tadros recalled that the final investment decision for the full field development, announced on 26 September 2026, marks the next chapter, with start-up expected in 2029 and daily gas production set to increase fourfold, from 150 million to 600 million cubic feet.
"For us, the strategic opportunity is to support that expansion alongside our partners and connect resource investment with infrastructure and future sales," he added.
How XRG has created value since the original Absheron investment
The director noted that the clearest progress is the move from interest in a producing field to an agreed significant expansion, with a future customer secured for exports and domestic supply to SOCAR.
"A long-term sales agreement with BOTAŞ establishes an outlet for future Absheron supply to Türkiye and potentially up to 16 export markets, while the partners’ final investment decision commits us to the next development stage. Our approach to value creation considers development, transport and sales together: customer commitments help inform investment planning, and infrastructure connects the resource to those customers. These are tangible commercial foundations. The task now is to turn them into reliable delivery through disciplined capital allocation and execution with our partners," he explained.
XRG in Azerbaijan: strategic priorities and partnership value
"We bring long-term capital, industrial experience and commercial expertise, deployed through active ownership rather than a purely financial holding. In practice, that means working with our partners on development priorities, capital discipline and the commercial arrangements needed to reach customers. SOCAR’s knowledge of Azerbaijan and TotalEnergies’ operating expertise are central to that work; our contribution is complementary," he said.
Tadros believes that there is also scope for two-way learning between Azerbaijani and UAE energy professionals.
"Our approach starts with shared objectives and clear responsibilities, so each partner’s strengths contribute to the development’s long-term success," he said.
The director pointed out that Azerbaijan is an experienced energy producer and a strategic link between the Caspian, Türkiye and Europe.
"Its world-class resources established infrastructure and energy expertise make it a priority for our international gas business. Our investment builds on the strong, enduring relationship between Azerbaijan and the UAE. That provides a foundation of trust for long-term collaboration, bringing together complementary energy expertise and a shared commitment to connect resources with customer needs. That is the story we invite visitors to explore with XRG at ADIPEC: how XRG is investing with partners in energy systems that connect resources, infrastructure and markets around the world," he said.
Southern Gas Corridor - important part of the story
Tadros noted that XRG wants to build on the Southern Gas Corridor, evolving it into an integrated system that connects multiple upstream resources.
"The Southern Gas Corridor is an established network extending around 3,500 kilometres through Georgia and Türkiye towards Europe, developed by Azerbaijan and a wider group of countries and companies. Our investment there complements our Absheron interest: the field partnership develops the resource, while the corridor’s own stakeholder network supports market connectivity. Assessing the resource and its route to market together helps us understand where capital is needed and where commercial risks sit. For Azerbaijan, that connectivity supports its established position as an energy partner; for investors and customers, it makes access to markets part of the investment decision.
Our strategy is therefore to build on the Southern Gas Corridor, evolving it into an integrated system that connects multiple upstream resources with strategic infrastructure and end markets. Today, the corridor delivers more than 25 bcm of gas annually to regional and European markets," he explained.
Tadros noted that Azerbaijan’s contribution begins with developing resources to meet domestic needs and sustain its role as a reliable regional supplier.
"Absheron’s next phase is intended to serve Azerbaijan and Türkiye, with the wider network providing links to European markets. Europe benefits from a broader range of supply options and from the long-term relationships that underpin dependable energy trade. That outcome requires coordinated investment by producers, infrastructure partners and buyers, not resource ownership in isolation. Our role is to support that cooperation through commercially grounded investment," the director added.
What differentiates XRG’s investment approach?
"We combine the financial discipline of private capital, the industrial expertise of an energy company and a long-term investment horizon. Partnership is how we put those capabilities to work. Rather than assessing a field in isolation, we work with our partners to consider development plans, infrastructure access and customer demand together. Through active ownership, we contribute to decisions on how projects are developed, costs are managed and future supply reaches customers," he said.
Tadros noted that XRG's aim is to invest in connected energy systems, not simply accumulate standalone assets.
"But integration is not an end in itself: each investment must make commercial sense and strengthen the wider portfolio, creating long-term value for our partners and investors. This reflects an integrated, partnership-led approach, rather than a series of standalone investments," he explained.
Tadros pointed out that the Caspian experience reinforces the importance of capable local and international partners, a credible development plan, infrastructure and a clear view of customer needs.
"Other markets have different resources, regulations and commercial structures, so the right combination will differ. We would apply the same questions: what does the host country want to achieve, what can each partner contribute, and how does the investment connect with demand? That is how we seek to build scalable platforms without losing discipline at the individual investment level," he said.
What does success look like by 2029?
Tadros believes that success means delivering the next phase of Absheron safely and reliably, while sustaining the partnership needed over the field’s life.
"The next phase of development, targeted to start production in 2029, is expected to quadruple daily gas production from 150 million to 600 million cubic feet, alongside nearly 50,000 barrels of condensate per day. The development will serve customers in Azerbaijan and Türkiye, with access to wider European markets through existing pipeline infrastructure. For us, success means additional supply for Azerbaijan, future deliveries to Türkiye and Europe, and enduring value for our partners, customers and shareholders," he said.
The noted that just as importantly, success means deepening the practical collaboration between Azerbaijani, UAE and international expertise that underpins this investment.
"Ultimately, we would judge success both by delivering on against our commercial commitments and by the strength of those relationships, within the broader, enduring partnership between Azerbaijan and the UAE," he concluded.