Total Seeks More Backing from Baku
French major Total wants more support from the government of Azerbaijan if it is to produce the first gas from its Absheron field in the Caspian on time, the executive for the region, Michael Borrell, told the energy minister Natik Aliev February 2.
Borrel updated the minister on progress at the 350bn m³ field, which the company operates.
Total and his partners increase efforts to start production from the Absheron field. However, more support needed from the government to achieve the first gas from the field in scheduled time.
Last November Total and Azerbaijan's state oil company Socar signed a framework agreement setting the contractual and commercial terms for the first phase. The agreement allows the partners to proceed with the plan to make a final investment decision by the end of 2017 and produce the first gas by late 2019 or early 2020.
He also pointed out that European Investment Bank has expressed its interest in funding some of the Absheron development.
While gas from the first stage of development will be supplied to domestic market, in the future Absheron will “greatly enhance the capability of the Southern Gas Corridor,” Aliev said. Total could also join other gas projects in Azerbaijan, Umid-Babek block for instance.
Absheron’s reserves is estimated in 350 billion cubic meters of gas and 45 million tons of condensate.
Total and Socar each have a 40% interest in Absheron with France Engie holding the balance.