Total, Socar Ink Absheron Development Deal
Total and Socar, the national oil company of Azerbaijan, have signed an agreement establishing the contractual and commercial terms for a first phase of production of the Absheron gas and condensate field, located in the Caspian Sea.
“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 made by Total in 2011” said Patrick Pouyanné, chairman and CEO of 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 meters. Production from this high pressure field will be around 35 thousand barrels of oil equivalent per day, including a significant portion of condensate.
The produced gas will supply Azerbaijan’s domestic market, the company explained.
Total is the operator of Absheron with a 40% interest alongside Socar (40%) and Engie (20%).