France’s Total and Azerbaijan’s state oil company Socar have signed an agreement establishing the contractual and commercial terms for a first phase of production of the Absheron gas and condensate field, Total said November 21.
“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 Total CEO Patrick Pouyanne.
He said the agreement was made possible “by a cost-competitive development scheme” whereby the field’s production would be tied into existing infrastructure.
The development involves the drilling of one well at a water depth of 450 metres. Production from this high pressure field will be around 35,000 barrels of oil equivalent/day, including a significant portion of condensate.
The produced gas will supply Azerbaijan’s domestic market although the size of the reserves suggests exports could be possible: they are put at 350bn m³ of gas and 45mn mt of condensates. First gas is due early around 2020.
* This first phase of production will also enable a dynamic appraisal of the field for future phases, Total said. Total is the operator of Absheron with a 40% interest alongside SOCAR (40%) and fellow French Engie (20%).
