Total and SOCAR, the national oil company of Azerbaijan, have signed an agreement establishing the contractual and commercial terms for the first phase of production from Absheron gas and condensate field. The field, which lies in the Caspian Sea, was discovered by Total in 2011.
“I’m delighted with this agreement, which we sign on the occasion of the 20th anniversary of Total’s presence in Azerbaijan, and which represents an important step to monetize the Absheron discovery,” said Patrick Pouyanné, chairman and CEO, Total. “This agreement was made possible by the close cooperation between Total and SOCAR, which has allowed us to design a cost-competitive development scheme by tying the field to existing infrastructure in order to deliver gas at a competitive price.”
The development involves the drilling of one well at a water depth of 450 m. Production from this high pressure field will be around 35,000 boed, including a significant portion of condensate. The produced gas will supply Azerbaijan’s domestic market.
This first phase of production will also enable a dynamic appraisal of the field for future phases.
Total (40%) is the operator of Absheron alongside SOCAR (40%) and ENGIE (20%).
Source: Global Oil update
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