Azerbaijan signs investment agreements worth over US$10bil

Azerbaijan inked investment agreements totaling over US$10 billion at an international forum held in Baku, according to a presidential aide. The country also unveiled a series of energy-related deals during the event. State oil company Socar, French firm TotalEnergies, and Abu Dhabi's XRG recently made a final investment decision to develop the Absheron gas and condensate field, one of the largest offshore reserves in the Caspian Sea.

President Ilham Aliyev announced that the second phase of the Absheron project would boost Azerbaijan's gas output by approximately 5 billion cubic meters within a span of three to four years. Aliyev emphasized that oil and gas will continue to be the backbone of the Azerbaijani economy, generating wealth that will be reinvested into the nation.

While non-oil sectors now constitute more than 70% of the country's gross domestic product, oil and gas still account for over 90% of the nation's exports. Azerbaijan primarily exports gas to Europe and Turkey, with roughly half of its 25 billion cubic meters of gas exports last year headed towards EU countries. The expansion of the Absheron field comes as global energy supply disruptions have heightened concerns over supply security, though further growth in Azerbaijani gas exports to Europe would necessitate additional pipeline capacity.

Socar and US energy giant ExxonMobil finalized a production-sharing agreement to explore, develop, and produce unconventional hydrocarbon resources in Azerbaijan's Middle Kura basin, with each firm holding a 50% stake and ExxonMobil acting as the operator. Aliyev also revealed that transit cargo volumes through Azerbaijan are anticipated to reach 16 million metric tonnes this year, with a goal of surpassing 25 million tonnes or more by 2030.

The government is currently negotiating with unnamed international firms to develop data centers and artificial intelligence capabilities in the country.