TAQA Saudi Arabia Plans to Enter Azerbaijan Energy Market

TAQA, owned by the Saudi Public Investment Fund (PIF), is negotiating to provide oil and gas field development services with two entities in Azerbaijan, including State Oil Company of the Republic of Azerbaijan (SOCAR), with which talks have reached advanced stages.

According to a report published by Saudi Arabic daily Al Eqtisadiah, TAQA aims to enter the Azerbaijani energy market through these discussions as part of its regional expansion plan into the emerging oil and gas markets of the Caspian Sea region.

In addition to SOCAR, TAQA is also in negotiations with a private company involved in the development of onshore and offshore oil fields. The move embodies TAQA’s drive to strengthen its presence by expanding its oil and gas exploration, development, and production activities outside Saudi Arabia, the report said.

TAQA sees the Caspian Sea markets as promising opportunities for growth in the energy sector, given the size of unexplored reserves and the significant technical potential of the region’s countries, particularly Azerbaijan and Kazakhstan.

Huge Azerbaijani Reserves

Azerbaijan is a major exporter of oil and gas to Europe via a network of cross-border pipelines, most notably the Baku-Tbilisi-Ceyhan (BTC) pipeline, which transports oil to the Mediterranean, and the Trans-Anatolian Pipeline, which supplies Europe with Azerbaijani gas.

The report, citing data from the International Energy Agency, said that Azerbaijan’s oil reserves were estimated at around 7 billion barrels, while natural gas reserves exceed 2.5 trillion cubic meters.

SOCAR leads most of the sector’s activities, alongside international companies such as BP, which operates major fields in the Caspian Sea, most notably the Azeri-Chirag-Guneshli field and the Shah Deniz natural gas project, which form the backbone of Azerbaijan’s energy exports.

Competing with Global Players

TAQA’s strategy indicates that expansion into these markets is part of a broader plan targeting Central Asia, leveraging Saudi Arabia’s geographic location and its expertise in managing complex projects in both conventional and renewable energy.

The company seeks to compete with major global oilfield services companies, such as Schlumberger, Halliburton, and Baker Hughes, which dominate market share in Central Asia.

TAQA relies on its advanced technologies and engineering equipment to provide more efficient and cost-competitive solutions. The company is paying particular attention to the Kazakhstan market, which it views as a future strategic market due to its vast oil and gas resources that have yet to be fully exploited.

This move comes as TAQA works to diversify its geographic portfolio and expand its operations from within Saudi Arabia to regional markets, in line with Vision 2030, which aims to enhance the global competitiveness of national companies in the energy and infrastructure sectors.