SOCAR and ADNOC Discuss Cooperation Within Development of Absheron Field
SOCAR President Rovshan Najaf met with Abu Dhabi National Oil Company (ADNOC) Executive Director Musabbeh Al Kaabi.
“At the meeting, it was noted that the agreement signed in August this year between SOCAR, TotalEnergies and ADNOC on the sale of a 30% stake in the Absheron gas condensate field development project is aimed at further strengthening the strategic relations between Azerbaijan and the UAE and full-scale cooperation,” the statement says. SOCAR information.
During the meeting, the issues of the implementation of the next stage of the Absheron project, low-carbon solutions and renewable energy projects were also discussed.
In addition, the parties noted that ADNOC contributed to the development of renewable energy through its investments in Masdar, which in turn implements renewable energy projects with a total capacity of 10 GW in Azerbaijan. “Around this, an exchange of ideas took place in the field of clean energy in the UAE and other issues of mutual interest,” the State Oil Company emphasizes.
As reported, TotalEnergies and SOCAR (State Oil Company of Azerbaijan) on July 10, 2023 announced the start of production as part of the first phase of the development of the Absheron field.
Currently, 4.3 million cubic meters of gas and 1,400 tons of condensate are produced daily from the Absheron field as part of the first stage of production. The gas is intended for the domestic market of Azerbaijan.
SOCAR and TotalEnergies had equal shares in the Absheron project – 50% each. However, on August 4, 2023, the Abu Dhabi National Oil Company (ADNOC) acquired a 30% stake in the project – 15% each from SOCAR and TotalEnergies. After the completion of the transaction, the shares of SOCAR and TotalEnergies in the Absheron project will each be 35%.
The Absheron field is being developed by the Joint Operating Company of Absheron Petroleum B.V. (JOCAP) established by SOCAR Absheron (50%) and TOTAL E&P Absheron (50%). The contract was signed for a period of 30 years. The contract area is 747 sq. km.
The Absheron block is located 100 km from Baku at a depth of 500 meters. In 2019, SOCAR and TOTAL completed drilling of the production and appraisal well “ABD-001” with a depth of 7411 meters at the “Absheron” field. According to the initial estimate, the reserves of the field amount to 350 billion cubic meters of gas and 100 million tons of condensate, and its development will be carried out in stages.
At the first stage, the production volume will be 1.5 billion cubic meters per year. At its peak, the project can produce 6 billion cubic meters of gas per year.
