10 Jul 2024 13:54

Azerbaijan committed to maximum output at Absheron field with exports

BAKU. July 10 (Interfax) - Azerbaijan is committed to raising output at its offshore Absheron gas condensate field to 6 billion cubic meters of gas per year, Azerbaijani Energy Minister Parviz Shahbazov said.

"The plans of developing the Absheron field in stages and increasing the annual production from 1.5 bcm to 6 bcm are significant contributions to the energy security of our country, as well as of our regional and European partners," Shahbazov said on social media.

He said Joint Operating Company of Absheron Petroleum B.V. or JOCAP had produced 1.5 bcm of gas in the year since the field went on stream.

"The Absheron gas and condensate field produced more than 1.5 bcm of gas and approximately 580,000 tonnes of condensate during a year for the early production scheme (EPS) phase," Shahbazov said.

Absheron is scheduled to achieve peak production of 1.5 bcm gas as well as 523,000 tonnes of condensate this year under the first phase of the project.

TotalEnergies and State Oil Company of the Azerbaijani Republic (SOCAR) announced the start of the first phase of the Absheron field's development on July 10 last year. The first phase gas is intended for Azerbaijan's domestic market.

According to plans aired previously, output of 4-4.5 bcm is anticipated during the project's second phase, so peak production should be 5.5-6 bcm per year including the first phase 1.5 bcm per year.

It follows from what Shahbazov said that the government considers production at the upper bound of the range to be necessary.

The field produced 800 bcm of gas and 300,000 tonnes of condensate in 2023.

The Absheron block is located 100 km from Baku at a depth of 500 meters. According to initial estimates, its reserves are 350 bcm of gas and 100 million tonnes of condensate. Development will be carried out in stages.

The contract was signed for 30 years.

SOCAR and TotalEnergies had equal shares in the project of 50% each. However, on August 4, 2023, the Abu Dhabi National Oil Company (ADNOC) acquired a 30% stake, 15% each from SOCAR and TotalEnergies. After completion of the deal in February 2024, SOCAR and TotalEnergies hold 35% each.