TODAY.AZ / Business

Petrofac-SOCAR JV to service Absheron field

20 August 2019 [17:11] - TODAY.AZ

By Azernews


By Leman Mammadova

The gas to be extracted from Absheron gas field, located in the Azerbaijani sector of the Caspian Sea, is expected to be supplied to local consumers in the near future. 

The joint venture, created by the British Petrofac and the Azerbaijani state oil company SOCAR, has secured a contract for engineering and technical services to support the development of the Absheron gas field by French Total and SOCAR.

Petrofac is a London-based service provider for major oil and gas companies in the world. The contract is concluded for a period of a year with the possibility of extension, said the Petrofac.

“We are pleased to expand the offer of our services in Azerbaijan and hope to provide engineering and a wider range of technical services to support the activities of Total and SOCAR,” said Mani Rajapathy, managing director of Petrofac EPS East.

Absheron gas field is located in the Caspian Sea, southwest of the block of Azeri-Chirag-Guneshli fields, at a depth of 500 meters. Potential reserves of the field are estimated at 350 billion cubic meters of gas and 45 million tons of condensate.

An agreement on exploration, development and shared distribution of production at the Absheron offshore block was signed in 2009. Currently, the project participants are SOCAR and Total, each holding 50 percent.

The contract was signed for a period of 30 years. The contract area is 747 square km. Drilling of the first production well began in May 2018.

The expected daily production rate of the well at the first stage is 2,000 tons of condensate and 4.3 million cubic meters of gas.

As of 2016, SOCAR and Total signed a framework agreement on the main contractual and commercial principles governing the program of the first phase of the Absheron field development.

The first product from the Absheron field is expected in 2020. All gas produced in the first stage of the Absheron field development will be directed to the domestic market of Azerbaijan.

The joint venture between SOCAR and Petrofac was established based on an agreement signed between the parties in 2017. The enterprise was created with an authorized capital of 100,000 manats ($58.840). SOCAR's stake in the joint venture is 51 percent, Petrofac – 49 percent.

The joint venture was created to develop the skills and knowledge of oil workers at the expense of the capabilities of both companies. The scope of the company includes training and education of employees for energy projects implemented in Azerbaijan and other countries on the basis of modern programs.

URL: http://www.today.az/news/business/185574.html

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