Development of the "Absheron" field will require investments totaling $4.2 billion

The full-field development project of the "Absheron" gas condensate field (Absheron FFD) has reached the Final Investment Decision (FID) stage, with total capital expenditures estimated at approximately 4.2 billion dollars.

As reported by Report, this was announced by Vice President of the State Oil Company of Azerbaijan (SOCAR) Babek Huseynov.

According to his statement, the development program includes drilling four subsea production wells, construction of a multiphase offshore pipeline approximately 142 kilometers long, as well as the construction of new processing infrastructure in the Sangachal area. The production volume at the plateau stage (peak production) under the FFD is expected to reach approximately 4.5 billion cubic meters of gas annually, with "first gas" targeted for 2029.

B. Huseynov emphasized the significant role of SOCAR, as well as the SOCAR Upstream Management International (SUMI) division, the company's commercial and legal departments in advancing the project, resolving complex contractual issues, and overcoming barriers at the pre-investment stage. In addition, he highlighted the importance of including the fourth eastern well in the project, which received approval from SOCAR.

The gas recovery rate at this field is projected to exceed 60%, which is in line with leading global industry standards. "Our objective at this stage is absolutely clear — to achieve first gas in 2029. We expect TotalEnergies to deliver the project in compliance with safety standards, on schedule, and within the approved budget, while SOCAR will continue to provide the necessary support," B. Huseynov stated.

It should be recalled that at the plateau stage under Phase 2 of the project, it is planned to extract 12.7 million cubic meters of gas per day (approximately 4.5 billion cubic meters annually), as well as 35 thousand barrels of condensate per day — in addition to the volumes already being produced under Phase 1.

The "Absheron" field was discovered by Azerbaijani geological specialists back in the 1960s. Its gas resources are estimated at 350 billion cubic meters, making it the second largest gas field in the Caspian Sea — after "Shah Deniz." The contract for the development of "Absheron" was signed in 2009 between the French corporation Total and SOCAR. On August 4, 2023, an agreement was signed with the Abu Dhabi National Oil Company (ADNOC) for its acquisition of a 30% stake in "Absheron." Currently, SOCAR and TotalEnergies hold equal shares — 35% each.