- Companies to explore low-carbon solutions for potential deployment in the UAE, Azerbaijan and other global markets to advance net zero ambitions
   - Agreement builds on strategic bilateral energy cooperation between the UAE and Azerbaijan across renewable energy and natural gas

ADNOC and the State Oil Company of Azerbaijan Republic (SOCAR) announced, the signing of a strategic collaboration agreement (SCA) that sets out their intention to collaborate on the potential development of low carbon energy technologies. The SCA follows both ADNOC and SOCAR becoming founding signatories of the Oil and Gas Decarbonization Charter, signed at COP28, that sets shared targets to eliminate routine flaring and zero out methane emissions by 2030 and achieve net zero by 2050.

As part of the SCA, ADNOC and SOCAR will explore opportunities to work together to advance blue hydrogen, carbon management and geothermal technologies that can accelerate the decarbonization of energy systems in the UAE, Azerbaijan and other key markets and support their net zero ambitions.

Musabbeh Al Kaabi, ADNOC Executive Director, Low Carbon Solutions and International Growth, said: “This latest collaboration with SOCAR underscores the importance of our industry working together to advance low-carbon solutions and accelerate decarbonization. Through this agreement ADNOC and SOCAR will leverage our combined knowledge, experience and expertise to advance promising hydrogen, carbon management and geothermal technologies that could make a tangible difference as the world takes bold steps to decarbonize energy value chains.”

The SCA builds on the strategic bilateral energy cooperation between the UAE and Azerbaijan, including the 30% stake held by ADNOC in the Absheron gas and condensate field in the Azerbaijan sector of the Caspian Sea. It also builds on ADNOC’s shareholding in Abu Dhabi Future Energy Company (Masdar). Recently, Masdar inaugurated the 230MW Garadagh Solar Park in Azerbaijan, which is the region’s largest operational solar park.

Afgan Isayev, SOCAR Vice President for Energy Transition, Environment and Decarbonization, said: “This partnership highlights our unwavering commitment to advancing the energy transition and reinforces the strong bilateral ties between SOCAR and ADNOC. By formalizing our commitment through the signing of the Oil & Gas Decarbonization Charter at COP28, we affirm our proactive stance towards eliminating flaring, mitigating methane emissions and achieving net-zero emissions by 2050. This collaboration signifies our collective pursuit of a greener future, leveraging our combined expertise for sustainable energy practices. This partnership highlights our unwavering commitment to advancing the energy transition and reinforces the strong bilateral ties between SOCAR and ADNOC.”

ADNOC has initially allocated $15 billion (AED55 billion) to advance and accelerate lower-carbon solutions, new energies and decarbonization technologies as it reduces its carbon intensity by 25% by 2030 and works towards net zero by 2045. ADNOC is also targeting carbon dioxide (CO2) capture capacity of 10 million tonnes per annum (mtpa) by 2030. Yesterday, ADNOC announced the successful start-up of geothermal district cooling in Masdar City, in the first project in the Gulf region to harness geothermal energy.

About ADNOC

ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification.

About SOCAR

SOCAR is one of the leading international energy companies. In order to ensure the economic interests of the Azerbaijani people, SOCAR is a major operator and participant in a number of transnational projects across the country and abroad. The company is active in all the oil and gas industry value chains. Exploration of oil and gas fields, production, processing and transportation of oil, gas and gas condensate constitute the main part of the operations of SOCAR. SOCAR also exports natural gas, oil and petrochemical products to the country's market, as well as international markets. The company's goal is to become a vertical integrated international energy company with advanced experience in the field of effective operation, social and environmental responsibility. As an important EU energy supplier, SOCAR plays a special role in the sustainable economic development of Europe.