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13.06.2016 17:49

SOCAR and TOTAL discuss fate of gas from Caspian field Absheron

The State Oil Company of Azerbaijan (SOCAR) and French company Total are discussing the fate of the gas from Absheron field in the Caspian Sea – its possible export and sale on the domestic market of Azerbaijan.

Today Natural Gas Europe (NGS) writes with reference to its sources "Total is looking for compromises on the improvement of the PSA conditions with SOCAR on Absheron".

“Total wants to sell gas at higher prices in domestic markets, but Baku is keen to purchase the gas at a fixed, low price, regardless of global gas price fluctuations. At that, Socar has so far refused Total’s request on an ‘amendment to the PSA’s conditions’,” the article says.

The program of the country’s second biggest gas field, Absheron, which contains 350 bn m3 of gas and 45 mn metric tons of gas condensate, should be presented by Total this November.

The project participants are state Socar with 40%, French Total also with 40% and Engie (former GDF Suez) with the remaining 20%.

“The project is similar to Shah Deniz, but on a smaller scale: it is divided into two phases, based on a production-sharing agreement (PSA). The first phase is projected to produce 5bn m3/yr and the second another 8-10 bn m3/yr,” NGS writes.

In May Total’s vice president for Azerbaijan, Kazakhstan and Tadjikistan, Thierry Darrigrand held talks in Baku and stated that their company needs support with the export of gas produced from the Absheron field, but so far the French company has not solved the main issue – how to sell its gas.

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