On June 1, 2026, during Baku Energy Week, Azerbaijan’s State Oil Company, TotalEnergies, ADNOC International, part of Abu Dhabi National Oil Company, and Turkey’s state pipeline company, BOTAŞ, signed a 15-year natural gas sales and purchase agreement for the second phase of the Absheron field in the Caspian Sea. The agreement will supply about 33 billion cubic meters of natural gas to Turkey starting in 2029. This deal matters because it highlights the growing importance of Caspian gas as buyers seek reliable supplies years before production begins.
The Absheron gas-condensate field lies about 60 miles southeast of Baku and is one of Azerbaijan’s key offshore discoveries. Azerbaijan’s State Oil Company and TotalEnergies each owns 35 percent of the project, while Abu Dhabi National Oil Company holds 30 percent after TotalEnergies sold part of its stake in 2023. The first phase began production in 2023, mainly serving Azerbaijan’s domestic market, producing around 1.5 billion cubic meters per year.
Turkish officials have described the agreement as a contribution to national and regional energy security.
The second phase will further develop the field. It will target reservoirs and connect subsea wells to new onshore processing facilities. At its peak, the project should produce about 4.5 billion cubic meters per year of gas. It will also produce condensate, which adds commercial value. The partners expect to make a final investment decision later in 2026, and the first gas extraction is planned for 2029.
The agreement sends roughly half of the second phase’s gas to Turkey over 15 years. For Turkey, this strengthens long-term supply security and adds another reliable gas source as Ankara works to diversify imports. For Azerbaijan, the deal creates a market for future production and strengthens its role as a regional gas supplier. It also demonstrates confidence in the project since buyers are committing to gas years before the first volumes reach the market.
The partnership also has political significance. It combines French technical expertise, Turkish market access, Azerbaijani resources, and Emirati capital. TotalEnergies leads the project with its offshore experience. Abu Dhabi National Oil Company contributes investment strength and growing international gas ambitions. Azerbaijan’s State Oil Company protects national energy interests, while Turkey’s BOTAŞ connects the gas to Turkey’s domestic market and broader energy system. This structure shows how major gas projects depend on regional cooperation.
For Azerbaijan, Absheron Phase 2 supports a larger strategy. Baku already exports gas through the Southern Gas Corridor, including the Trans-Anatolian Natural Gas Pipeline through Turkey and onward routes to Europe. New gas from Absheron will not on its own transform Europe’s energy balance, but it will add valuable supply diversity. In a market still shaped by efforts to reduce reliance on Russian gas, every additional non-Russian volume holds strategic importance.
Turkey stands to gain more directly. The deal helps Ankara secure future gas while reinforcing its ambition to become a regional energy hub. Turkey is already positioned between Caspian producers, Middle Eastern suppliers, Black Sea resources, and European consumers. By securing future Azerbaijani gas, Ankara strengthens both its supply position and its role as a bridge between producers and markets. Turkish officials have described the agreement as a contribution to national and regional energy security.
Europe benefits indirectly. Although Turkey contracts gas for Turkey, higher Azerbaijani production can improve flexibility across the wider Southern Gas Corridor. It may also free up other volumes for regional trade. These are not huge, but they still matter because Europe’s energy security now relies on several smaller supply additions rather than a single large source. Absheron thus adds another dimension to the non-Russian gas supply landscape.
The second phase requires substantial investment in subsea infrastructure, pipelines to shore, and processing facilities.
The timing of the agreement is also significant. By signing in 2026 for deliveries starting in 2029, the partners demonstrate that gas security planning begins years before production. Buyers want dependable supply. Producers need guaranteed demand before investing in costly offshore infrastructure.
The project still faces challenges. The second phase requires substantial investment in subsea infrastructure, pipelines to shore, and processing facilities. The partners also need to address environmental and social concerns in the Caspian Sea. Technical risks remain, especially since the project targets deeper reservoirs and must keep to its schedule for the 2029 start date.
Regional politics could affect confidence, transit planning, and market access. Even so, the project has strong momentum. Engineering work is progressing, and the partners appear aligned on the next development phase. The role of Abu Dhabi National Oil Company shows increasing Persian Gulf interest in Caspian energy. TotalEnergies’ ongoing involvement reflects confidence in Azerbaijan’s potential. For Baku, the agreement enhances energy diplomacy and provides another method to position itself as a serious gas supplier for Turkey, and indirectly, for Europe.
The Absheron Phase 2 agreement is more than just a commercial gas deal; it solidifies Azerbaijan’s place as a regional supplier, helps Turkey secure long-term gas, adds another non-Russian source to the European energy system, and deepens Emirati investment in the Caspian.
