XRG approves FID for Absheron expansion

Key highlights
  • XRG holds a 30% equity interest and approved the Final Investment Decision for Absheron’s next development phase.
  • The expansion is expected to unlock up to 5 trillion cubic feet of recoverable gas.
  • Production is scheduled to start in 2029, rising to 600 million cubic feet per day and 47,000 barrels per day of condensate.
  • Project links to the 3,500 km Southern Gas Corridor and involves partners SOCAR and TotalEnergies; XRG also holds 38% in Turkmenistan’s offshore Block I.

Final Investment Decision

XRG has announced the Final Investment Decision for the next phase of the Absheron offshore gas and condensate field development, where it holds a 30% equity interest.

Resource and production outlook

The Absheron expansion is expected to unlock up to 5 trillion cubic feet of recoverable gas. Production is expected to start in 2029, with output rising to about 600 million cubic feet of gas per day and 47,000 barrels of condensate per day. The project follows the field’s first production phase, which began in 2023.

Market access and partnerships

The development complements XRG’s investment in the Southern Gas Corridor, the 3,500-kilometre pipeline network connecting Azerbaijan with Türkiye, Southern Europe and more than 15 European countries, providing route-to-market access for Caspian gas. XRG cited partnerships with SOCAR and TotalEnergies as part of the investment framework.

Regional portfolio and commitments

Beyond Absheron, XRG holds a 38% participating interest in Turkmenistan’s offshore Block I. The company says these assets form an integrated, infrastructure-linked gas platform and has also introduced a scholarship program to support education and skills development in Azerbaijan.

Source: XRG

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