SOCAR and French Total sign contract on Absheron structure development

The agreement on exploration and development of the Absheron structure in the Azerbaijani sector of the Caspian Sea was signed by the State Oil Company of Azerbaijan and Total oil company (France) Friday, according to sources in SOCAR, Novosti-Azerbaijan reports.

"By provisions of the signed agreement the French side got 60% of participation and Azerbaijani 40%", says the statement.

The memorandum between SOCAR and Total on this structure was signed in February of 2007. Earlier the companies were planning to sign PSA contracts by the end of 2008, while the involvement of a third participant is not ruled out.

In 1997 Chevron (30% shares), SOCAR (50%) and Total (20%) signed a contract on exploration and development of Absheron. The volume of investments into the project is estimated on the level of $3-4 mln, while the predicted reserves at $2-4 trillion cubic meters of gas and 150 mln tons of gas condensate.

The first exploration well drilled in 2001 revealed just small flows of gas and in this connection Chevron rejected further works. The contract became invalid in 2005.

Absheron locates 100 kilometers away from Baku, the sea depth in this region is 500 meters.