Baku Approves Absheron Plan: Sources

French energy company Total has the green light for its early development programme at its Absheron gas and condensate field in the Caspian Sea off Azerbaijan, sources close to the company said.

The program presented last December was approved by Socar, sources at the operating company told NGW April 11.

The partners are now working on the phase 1 development project, which is in detail engineering stage. The first development well will be spudded in autumn, they said.

The drilling of the production well, which will aim also to appraise of an unexplored section of the field and support more accurate estimates of its reserves, will be slightly delayed and start sometime in October instead of earlier planned September, other sources said.

Total and his partners for Absheron – Socar, and Engie plan to make a final investment decision in the end of 2017. In that case, the first gas from the field could be produced as early as 2019. To date, Total and Engie have spent around $400mn on exploration in Absheron.   

The production from Absheron early development will be about 1.5bn m³/yr and is destined for the domestic market initially although the field is very large and could, given the right geology, prove capable of producing much more than that, enabling exports through an expanded Southern Gas Corridor. Absheron’s reserves are estimated at 350bn m³ of gas and 45mn metric tons of condensate.

Total is also considering other projects in Azerbaijan, for instance, the Umid- Babek gas and condensate block, to optimise its presence in future gas exports from the region. 

Total and Socar have a 40% interest each in Absheron, with France’s Engie holding the balance. Total did not comment officially on the approval.

Azerbaijan desk