PARIS – Total and SOCAR have signed an agreement establishing the contractual and commercial terms for a first phase of production of the Absheron gas and condensate field in the Azeri sector of the Caspian Sea.
The development involves the drilling of one well at a water depth of 450 m (1,476 ft). Production from this high-pressure field will be about 35,000 boe/d, including a significant portion of condensate. The produced gas will supply Azerbaijan’s domestic market.
This first phase of production will also enable appraisal of the field for future phases.
Total is the operator of Absheron with a 40% interest alongside SOCAR (40%) and ENGIE (20%).
Patrick Pouyanné, chairman and CEO of Total, said: “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.
“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.”