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    Absheron 1st Phase Production Target Disclosed

Summary

Expected production levels from first phase production at the Total-operated Absheron gas field, offshore Azerbaijan, have been disclosed.

by: Azerbaijan Desk

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Absheron 1st Phase Production Target Disclosed

Expected production levels from first phase production at the Total-operated Absheron gas field project, offshore Azerbaijan, have been disclosed.

Initial production there will reach 1.57bn m3/yr of gas plus 17,000 b/d condensate, said sources during a visit last week to a Caspian offshore platform.

Socar President Rovnag Abdullaev has now twice stated that first gas from an early production scheme at Absheron can be produced by the end of 2019, subject to a final investment by end-2017. Absheron partners -- state owned Socar 40%, Total 40% and Engie 20% -- have a production sharing contract lasting 30 years covering a 747 km2 contract area.

Until last year, Total and fellow French partner Engie had said that Absheron would start producing no earlier than 2020-2021, with an ultimate plateau of 5bn m3/yr. Total still believes early 2020 is a more realistic target for first sales to the domestic market from Absheron.

But following signature by Total and Socar of a framework deal governing Absheron last November, Total said on November 22 that gas produced from a first stage of its production would be sold in the domestic Azeri market, that a first phase development would involve drilling one well to a depth of 450 meters, and that expected production rate would be 35,000 barrels of oil equivalent per day.

Socar President Rovnag Abdullaev (Photo credit: Socar)

NGW can report that implementation of the project construction of the platform and drilling of the first well will start this year. Drilling of the well will be conducted from a modern ‘sixth-generation’ semi-submersible drilling platform, built in Baku in 2013. The cost of the first stage will be about $1bn.

Only one well will be drilled to a depth of 6,000 meters. A small offshore platform will need to be built. But even large Shah Deniz-2 platforms were built in under 36 months, so this is not seen by Socar as too great a challenge. No new shore-based facilities would be required, although 100 km of subsea pipes would be needed to connect the field to land.

Expected phase 1 Absheron production details were disclosed April 15 during a visit by Socar vice-president for developments Yashar Lyatifov, its upstream affiliate Azneft's managing director Dashgin Iskenderov, and Total vice president of security Nicholas Brunet to the Neft Dashlari offshore field 100km east of Baku.  

Later stages of production from Absheron may well flow to the European market, through the Southern Gas Corridor now under development.

 

Azerbaijan Desk