Azerbaijan, Materials

The French Almost Found Lender for Gas Project Absheron

The European Investment Bank (EIB) is interested in the project to develop a large gas condensate field Absheron in the Caspian Sea, said General Vice President of Total for Europe and Central Asia Michael Borrell yesterday in Baku at the meeting with the Minister of Energy Azerbaijan Natig Aliyev.

According to the report released by the ministry, Borrell told about the work done and planned as part of the sea project Absheron.

According to him, Total and its partners have increased efforts to start production from the field Absheron, but the timely receipt of the first gas from the field needs support from the state.

In turn, the Minister noted the desirability of Total’s participation in the development of other oil and gas fields in Azerbaijan, including the Babek prospective area.

During the meeting, the Minister was also presented the new Vice President of Total for Europe and the Caspian region Bernard Clementi.

The exploration PSA for the structure Absheron was signed in 2009. In September 2011, the project operator, Total, announced the opening of a new large gas condensate field in the Caspian Sea. After processing the obtained data Total confirmed the reserves of Absheron: 350 bcm of gas and 45 million tons of condensate.

In November 2016 SOCAR and Total agreed to develop an initial deposit stage. According to this, the whole volume of extracted hydrocarbons in the amount of 2 million tons of oil equivalent will be sold to SOCAR and in the future used in the domestic market.

Total expects the first gas from the field will be produced in early 2020. However, Turan’s interlocutors in SOCAR believe that with the implementation of a clear timetable the first gas can be received in the IV quarter of 2019. Until the middle of 2017 SOCAR will approve a commercial agreement on the first phase of the project Absheron. After that the project operator will start the project. That is, the first production of gas under the work program is to take 30 months.

* Participants in the project Absheron are the state company SOCAR — 40 percent, and the French companies Total (40 percent) and Engie (20 percent).