SOCAR and ADNOC discuss Absheron and other potential new projects
BAKU. Jan 17 (Interfax) - President of the State Oil Company of Azerbaijan (SOCAR) Rovshan Najaf discussed the full-scale development of the Absheron field with the executive director of the Abu Dhabi National Oil Company (ADNOC) Musabbeh Al Kaabi in Davos, Switzerland.
"At the World Economic Forum, I participated in a strategic dialogue with Musabbe Al Kaabi. We discussed the progress of the Absheron project and the full-scale development of the field," Najaf said in a post on social media.
He added that low-carbon solutions and renewable energy sources were discussed at their meeting, as well as potential opportunities for future cooperation.
ADNOC signed an agreement in August 2023 to purchase a 30% stake in the Absheron project. After completion of the transaction, the shares of SOCAR and French TotalEnergies , which own 50% each, will decrease to 35% each.
TotalEnergies and SOCAR announced the start of production in July 2023 as part of the first phase of development of the Absheron field. The field is being developed by Joint Operating Company of Absheron Petroleum B.V. (JOCAP). The contract was signed for a period of 30 years. The contract covers an area of 747 sq. km.
Currently, during the first stage of production, 4.3 mcm of gas and 1,400 tonnes of condensate are produced daily from Absheron. The gas is intended for the domestic market of Azerbaijan. According to operational data from Azerbaijan's Energy Ministry, 800 mcm of natural gas and 0.3 million tonnes of condensate were produced at the field from July through December 2023.
President Ilham Aliyev said that the field is expected to produce 1.5 bcm in 2024. In addition, an investment decision must be made on the second stage of field development.
At its peak, the project can produce up to 6 bcm of gas per year.
The Absheron block is located 100 km from Baku at a depth of 500 meters. In 2019, SOCAR and Total completed drilling of a production and appraisal well with a depth of 7,411 meters. Initial estimates show that the field's reserves hold 350 bcm gas and 100 million tonnes of condensate.