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.
Exxon Mobil Corp. has evacuated dozens of its foreign staff from the West Qurna 1 oil field, but work is still going on, according to multiple reports.
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The winning companies offered bids totaling $724 million, the government said, to explore the areas that are located in the South Atlantic, some near the Malvinas Islands under the control of the British government, but whose sovereignty is claimed by Argentina.