Baku, Azerbaijan, Feb. 23
By Maksim Tsurkov – Trend:
France’s Total is to make its final investment decision (FID) on development of the Azerbaijani gas field Absheron by late 2017, Total Senior Vice President for Europe and Central Asia Michael Borrell said at the International Petroleum Week in London, the Natural Gas World reports.
Borrell said the first development well will be drilled at the end of 2017.
“Production would be about 1.5 billion cubic meters of gas per year, for delivery to the local market, although the 350 billion cubic meters field is capable of producing more. There is also condensate. While Total has held discussions with the government about allowing exports, these have not produced a result,” said Borrell, adding the company is focusing on the $1 billion first phase only.
Reflecting the difficult geology of the Caspian basin, the first well drilled into the reservoir in the 1990s found nothing commercial and the operator Chevron relinquished it, noted Borrell.
Under a new production sharing agreement in 2009, Total drilled a second well, 5 km away, and that was successful, he added.
“Subject to an FID this year on Absheron, first gas could be produced as early as 2019,” said Borrell.
Participants of the Absheron project are SOCAR (40 percent), Total (40 percent) and Engie (20 percent).
A contract on Absheron was signed on Feb. 27, 2009 between SOCAR and Total. Later, Total sold 20 percent of its share to Engie.
---
Follow the author on Twitter: @MaksimTsurkov