Babak Huseynov: Full-field development of Absheron to require investment of $4.2B

The full-field development project of the Absheron gas-condensate field (Absheron FFD) has reached the final investment decision (FID) stage, with total capital investments estimated at approximately $4.2 billion, Report informs referring to Vice President of the State Oil Company of Azerbaijan (SOCAR) Babak Huseynov.

According to his statement, the development program includes the drilling of four subsea production wells, the 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 should reach about 4.5 billion cubic meters of gas annually, and the delivery of "first gas" is scheduled for 2029.

Huseynov focused on the significant role of SOCAR, as well as the SOCAR Upstream Management International (SUMI) division, and the company's commercial and legal departments in the project's development, resolving complex contractual tasks, and overcoming barriers at the pre-investment stage. In addition, he highlighted the importance of including a fourth eastern well in the project, which was approved by SOCAR.

It is predicted that the gas recovery rate at this field will exceed 60%, which meets the world's leading industry standards. "Our task at this stage is absolutely concrete - to achieve first gas in 2029. We expect TotalEnergies to ensure the implementation of the project in compliance with safety standards, on schedule, and within the approved budget, while SOCAR will continue to provide the necessary assistance," Huseynov stated.

At the plateau stage within Phase 2 of the project, it is planned to extract 12.7 million cubic meters of gas daily (about 4.5 billion cubic meters annually), as well as 35,000 barrels of condensate per day - in addition to the volumes already obtained in Phase 1.

The Absheron field was discovered by Azerbaijani geologists 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) on its acquisition of a 30% stake in Absheron. Currently, SOCAR and TotalEnergies hold equal shares of 35% each.