Major events in Caspian countries' oil and gas industry for last week (June 12-16)

Analysis Materials 19 June 2017 13:54 (UTC +04:00)

TOTAL starts FEED on gas field in Azerbaijan

France’s TOTAL company has started the Front End Engineering Design (FEED) as part of the development of Azerbaijan’s Absheron gas and condensate field, a source in the oil and gas market said.

“Pre-FEED has already been completed and presented to the Absheron JV contractor parties and validated,” said the source. “Now the operator is starting the FEED phase and the final investment decision (FID) is scheduled for December 2017.”

The source said that it is planned to start drilling of the first well at Absheron field in September 2017 and the first gas target is December 2019.

Earlier, 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 will be used in Azerbaijan’s domestic market. The approximate cost of the first phase is estimated at $1 billion.