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SOCAR, TOTAL on threshold of creating new company

Oil&Gas Materials 17 November 2017 11:27 (UTC +04:00)

Baku, Azerbaijan, Nov.17

By Leman Zeynalova – Trend:

Azerbaijan’s state oil company SOCAR and French TOTAL will in the next few weeks complete the process of creation of the joint JOCAP company for developing Azerbaijan’s large gas field Absheron in the Caspian Sea, a source in the country’s oil and gas market told Trend Nov.17.

The source noted that JOCAP’s creation is still in process.

“Few details are to be tuned up before the formal establishment. It should be solved within few weeks,” added the source.

Further, the source pointed out that the withdrawal of French Engie, which held 20 percent share in Absheron project, was completed in June 2017.

Earlier, Azerbaijan’s state oil company SOCAR and TOTAL signed a framework agreement on the main contractual and commercial principles regulating the program of the first phase of Absheron field’s development.

The first phase of the field’s development envisages drilling of one well at a sea depth of 450 meters. The production will stand at up to 1.5 billion cubic meters of gas per year and these volumes, coupled with considerable amount of condensate will be used in Azerbaijan’s domestic market.

TOTAL specialists estimate the reserve of Absheron field to stand at 304 billion cubic meters of gas and 69 million tons of condensate.

JOCAP, with 50 percent share held by SOCAR and TOTAL each, will be the operator of Absheron project.

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Follow the author on Twitter: @Lyaman_Zeyn

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