Total, SOCAR Sign Absheron Development Agreement
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 from the Absheron gas and condensate field, located in the Caspian Sea.
The development involves the drilling of one well at a water depth of 1,476 feet. Production from the field will be around 35,000 barrels of oil equivalent per day, including a “significant” portion of condensate, according to Total. The produced gas will supply Azerbaijan’s domestic market.
“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,” Patrick Pouyanné, chairman and CEO of Total, said.
“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,” he added.
Total is the operator of Absheron with a 40 percent interest alongside SOCAR, which also holds a 40 percent interest, and ENGIE, which holds the remaining 20 percent stake.
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