Total Seeks Help with Absheron Sales: Ministry Source

French major Total wants the Azerbaijani government to help it with the sale of gas from its giant Absheron field in the Caspian Sea, according to a source at the Azerbaijani energy ministry.

“Total Vice President for Azerbaijan, Kazakhstan and Tadjikistan, Thierry Darrigrand, said during a meeting with the deputy energy minister of Azerbaijan Natig Abbasov that the company needs support with the sale of gas produced from the Absheron field,” a source told NGE. Total declined to comment.

Abbasov added that the capacities of the TransAnatolian Pipeline (Tanap) and the TransAdriatic Pipeline (TAP) would allow exports of gas from the Absheron field in the future. Total said earlier that the company plans to start extraction of first gas from the Absheron field at the end of 2021-early 2022.

Sources at state Socar told NGE that so far the French company has not solved the main issue – how to sell its gas. Total is not a shareholder of any of the pipeline consortiums dedicated to Shah Deniz 2 and producing the gas from deepwater and exporting it will be costly. The domestic market is likely to take some of the first gas, expected to be around 8bn m³/yr for a few years from start-up.

Thus, since last summer Total company has been looking at ways to develop the field, and is relying on the government. A 30-yr agreement covering exploration, development and allocation of gas from the Absheron offshore bloc was signed on February 27, 2009. The partners are Socar (40%), Total (40% operator) and Engie (20%). The contract area is 747 km².

Total confirmed in September 2011 the presence of significant gas resources, estimated at 350bn m³ and 45mn metric tons of condensate. Absheron is 100 km from Baku at a water depth of 500 metres.

Ilham Shaban