France’s Total and Azerbaijan’s state-owned player Socar have agreed to contractual and commercial terms for Phase 1 production from the Absheron gas and condensate field in the Caspian Sea.
Phase 1 of the development includes the drilling of one well at a water depth of 450 m (1,476 ft). Production from the high-pressure Absheron Field will be about 35,000 boe/d, including a “significant portion of condensate,” Total said. Produced gas will supply Azerbaijan’s domestic market.
“This first phase of production also will enable a dynamic appraisal of the field for future phases,” Total added.
“This agreement 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.”
Total is the operator of Absheron with a 40% stake, while Socar holds 40% and Engie has 20%.
Total also holds a 5% stake in the Baku-Tbilisi-Ceyhan oil pipeline, which connects Baku with the Mediterranean Sea.
—Steve Hamlen
Recommended Reading
The Jones Act: An Old Law on a Voyage to Nowhere
2024-04-12 - Keeping up with the Jones Act is a burden for the energy industry, but efforts to repeal the 104-year-old law may be dead in the water.
Kinder Morgan Exec: Building Pipelines ‘Challenging, but Manageable’
2024-04-05 - Allen Fore, vice president of public affairs for Kinder Morgan, said building anything, from a new road to an ice cream shop, can be tough but dealing with stakeholders up front can move projects along.
FERC Again Approves TC Energy Pipeline Expansion in Northwest US
2024-04-19 - The Federal Energy Regulatory Commission shot down opposition by environmental groups and states to stay TC Energy’s $75 million project.
CEO: Linde Not Affected by Latest US Green Subsidies Package Updates
2024-02-07 - Linde CEO Sanjiv Lamba on Feb. 6 said recent updates to U.S. Inflation Reduction Act subsidies for clean energy projects will not affect the company's current projects in the United States.
Global Energy Watch: Corpus Christi Earns Designation as America's Top Energy Port
2024-02-06 - The Port of Corpus Christi began operations in 1926. Strategically located near major Texas oil and gas production, the port is now the U.S.’ largest energy export gateway, with the Permian Basin in particular a key beneficiary.