Baku and Abu Dhabi forge a new energy axis

At the ADIPEC 2025 exhibition in Abu Dhabi, SOCAR and Dubai’s Dragon Oil (a subsidiary of ENOC Group) signed a memorandum of understanding to deepen cooperation in hydrocarbon exploration, production and marketing.

The agreement also includes the potential development of joint projects in the Caspian region and beyond, expanding both countries’ reach in energy logistics and trade.

The signing coincided with President Ilham Aliyev’s ratification of the Comprehensive Economic Partnership Agreement between Azerbaijan and the UAE — a move that underlines the structured and strategic nature of their deepening ties, with energy at the forefront.

Dragon Oil, which has operated in Turkmenistan’s Caspian fields since 1999 and exports over 1.5 million tonnes of oil annually through the Baku–Tbilisi–Ceyhan pipeline, is now transitioning from a transport role to active upstream and investment participation.

ENOC Group Chairman Saeed Mohammed Al Tayer said the partnership “opens new horizons for sustainable growth and prosperity” and described the Caspian as a key hub in the global energy landscape.

The cooperation builds on SOCAR’s growing partnerships with UAE firms ADNOC and Masdar, which are already implementing large-scale oil, gas and renewable energy projects totaling up to 10 GW.

Analysts say the deal cements Baku and Abu Dhabi’s role as emerging energy hubs linking the Caspian and the Gulf — a strategic axis uniting hydrocarbons, renewables and investment diplomacy.