TotalEnergies begins phase 2 of Absheron field development in Azerbaijan
BAKU. June 4 (Interfax) - TotalEnergies , a participants in the project to develop the Absheron gas condensate field in Azerbaijan's sector of the Caspian Sea, has begun implementing the second phase of the project, the head of the French company's division in Azerbaijan, Emmanuel de Guillebon said at a Baku energy forum.
He said the concept for the project calls for underwater production with the drilling of three or four additional wells and construction of a 140-km pipeline to the terminal in Sangachal.
There are plans to build a new gas processing plant near the terminal, he said. A key element of the project will be a multiphase pipeline that will carry gas and condensate together, which makes it possible to use pipe with lower heat insulation and essentially cut construction costs by half, Guillebon said.
The director of asset management at XRG, Bassem Tadros said at the forum that this project is just the beginning, as discussions are underway on new projects with SOCAR and other partners and progress is expected in the coming months. XRG is an international investment arm of United Arab Emirates state oil and gas company ADNOC, which also has a stake in the Absheron project.
The company is considering increasing investment in Azerbaijan, which it sees not only has a country with a wealth of oil and gas resources, but also one that is ideally suited for developing renewable energy sources, from geothermal energy to biomass, Tadros said.
The president of State Oil Company of Azerbaijan Republic (SOCAR), Rovshan Najaf met in Baku with Tadros and TotalEnergies senior vice president for Europe Jean-Luc Guiziou.
"We discussed our ongoing joint projects, particularly the full-scale development of the Absheron gas-condensate field. We also exchanged views on renewable energy, decarbonization, innovative technologies, and other issues of mutual interest," Najaf posted on Linkedin.
It was reported earlier that the second phase of Absheron's development will at least double gas production at the field to 3 billion cubic meters per year from the 1.5 bcm being produced in the first phase. Gas produced under the first phase is intended for Azerbaijan's domestic market.
TotalEnergies and SOCAR announced the start of production under the first phase of the Absheron field's development in July 2023. First-phase production peaked at 1.5 bcm in 2024. It was previously expected that production under the project could peak at 5.5 bcm-6 bcm per year.
The Absheron project was initially equally owned by SOCAR and TotalEnergies, but in August 2023 they each agreed to sell a 15% stake to Abu Dhabi National Oil Company (ADNOC), giving the latter a 30% stake and reducing their interests to 35% each.
The Absheron block is located 100 km from Baku at a depth of 500 meters, with the contract area covering 747 square km. The initial estimate put the field's reserves at 350 bcm of gas and 100 million tonnes of condensate. The field is being developed in stages under a 30-year contract by the Joint Operating Company of Absheron Petroleum B.V. (JOCAP).
