How does Absheron Phase 2 differ from the current production?

While the current phase is an early production scheme focused on immediate output, Phase 2 is a full-field development that involves drilling more wells and installing more robust subsea infrastructure to reach the field's maximum capacity.

Will this gas reach European consumers?

Yes, the primary goal of the expansion is to feed the Southern Gas Corridor, which transports gas through Georgia and Turkey into Greece, Albania, and Italy, providing a critical alternative to Russian energy.

What role does ADNOC play in this project?

The Abu Dhabi National Oil Company (ADNOC) recently purchased a 30% stake in the Absheron field, bringing significant capital and forming a strategic partnership with TotalEnergies and SOCAR to accelerate the field's development.

OilPrice · March 16, 2026 (Mar 16) · 1 min read

TotalEnergies Finalizes Plan for Azeri Absheron Field's Second Phase

TotalEnergies SE

Isometric technical illustration of offshore oil and gas operations with drillship and support vessel — Illustration: TotalEnergies SE

Analysis

AI-assisted analysis · reviewed by Yuri Kan

TotalEnergies has officially scheduled the second phase of the Absheron gas field expansion for a 2029 launch, signaling a long-term commitment to the Caspian's export potential. This full-field development phase aims to significantly scale up production volumes beyond the current early production levels. The move reinforces Azerbaijan's role as a primary alternative gas supplier for the European market through the end of the decade.

Key Facts

First gas from Absheron Phase 2 is scheduled for September 2029.
The project is officially named the Absheron Full Field Development (FFD).
TotalEnergies disclosed the timeline within a newly released environmental impact assessment.
The field produces a combination of natural gas and high-value condensate.
The project is a joint venture between TotalEnergies and Azerbaijan's state company SOCAR.
Absheron is located in the Caspian Sea, approximately 100 kilometers southeast of Baku.

Background & Context

The Absheron field was discovered in 2011 and is considered one of Azerbaijan's largest gas finds after Shah Deniz. Initial production, known as the Early Production Scheme (EPS), began in July 2023 to meet immediate domestic and regional demand. This expansion is part of a broader European Union strategy to double gas imports from Azerbaijan to 20 billion cubic meters per year by 2027 to replace Russian supplies.

Market Impact

The commitment to Phase 2 ensures that the Southern Gas Corridor will have a steady increase in throughput capacity into the 2030s. For TotalEnergies, this project represents a low-cost, high-margin gas asset that fits their strategy of prioritizing 'advantaged' hydrocarbons. The increased supply from the Caspian may create stiffer competition for Eastern Mediterranean gas producers seeking to enter the European market. Furthermore, the 2029 timeline suggests that infrastructure bottlenecks in the existing pipeline networks must be addressed within the next five years.

What to Watch

Market observers should look for the Final Investment Decision (FID) following the approval of the environmental impact assessment. Construction contracts for subsea infrastructure and platform modifications are expected to be tendered in the 2025-2026 window. Additionally, watch for potential equity shifts as Abu Dhabi's ADNOC recently acquired a 30% stake in the field, which could influence future funding and marketing strategies.

Why This Matters for Cyprus

The expansion of Azeri gas exports directly competes with Cyprus's ambitions to export gas from the Aphrodite and Cronos discoveries to Europe. As Azerbaijan secures long-term delivery slots through 2029 and beyond, the window for Eastern Mediterranean gas to claim a share of the European energy mix becomes increasingly crowded.

Frequently Asked Questions

How does Absheron Phase 2 differ from the current production?: While the current phase is an early production scheme focused on immediate output, Phase 2 is a full-field development that involves drilling more wells and installing more robust subsea infrastructure to reach the field's maximum capacity.
Will this gas reach European consumers?: Yes, the primary goal of the expansion is to feed the Southern Gas Corridor, which transports gas through Georgia and Turkey into Greece, Albania, and Italy, providing a critical alternative to Russian energy.
What role does ADNOC play in this project?: The Abu Dhabi National Oil Company (ADNOC) recently purchased a 30% stake in the Absheron field, bringing significant capital and forming a strategic partnership with TotalEnergies and SOCAR to accelerate the field's development.

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