Start of gas production at Absheron field as part of 2nd phase expected around 2028-2029 - Azerbaijan's State Oil Company

BAKU. June 5 (Interfax) - Production of the first gas in the second phase of development at the Absheron field in the Azerbaijani sector of the Caspian Sea is planned for late 2028 to early 2029, State Oil Company of the Azerbaijani Republic (SOCAR) Deputy Vice President Vitaly Beglyarbekov said on Wednesday during the Baku Energy Forum.

"The Absheron project, implemented by SOCAR in partnership with France's TotalEnergies and the UAE's ADNOC, is approaching the stage of making a final investment decision (FID) this year for its second phase of development. This should lead to the successful launch of production by late 2028 or early 2029," Beglyarbekov said.

The project will ensure production of at least 4.5 billion cubic meters of gas per year across both development stages, he said. The first phase is producing 1.5 bcm.

The head of TotalEnergies' Azerbaijani division, Emmanuel de Guillebon, previously said that his company, which is the project operator, has already begun implementing the second phase of the field's development.

The project's concept involves subsea hydrocarbon production with the drilling of three to four additional wells and the construction of a 140-kilometer pipeline to the Sangachal terminal. It is planned that a new gas processing plant will be built near the terminal.

TotalEnergies and SOCAR announced the start of production under the first phase of the Absheron development on July 10, 2023. In 2024, production under the first phase reached its peak level of 1.5 bcm.

Initially, the project was equally shared between SOCAR and TotalEnergies. In August 2023, a third participant appeared - the UAE's Abu Dhabi National Oil Company (ADNOC), which acquired 15% stakes from both SOCAR and TotalEnergies.

The Absheron block is located 100 km from Baku at a depth of 500 meters. The field is being developed by the Joint Operating Company of Absheron Petroleum B.V. (JOCAP). The contract was signed for a term of 30 years. The contract area covers 747 square kilometers. According to initial estimates, the field's reserves amount to 350 bcm of gas and 100 million tonnes of condensate. Gas produced in the first phase is intended for Azerbaijan's domestic market.