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Total in deal to develop gas field in Azerbaijan

Xinhua, November 22, 2016 Adjust font size:

French oil giant Total has signed an agreement to develop a gas field in Azerbaijan with the country's national oil company, the French company said Monday.

The agreement aims to "establish the contractual and commercial terms for a first phase of production of the Absheron gas and condensate field, located in the Caspian Sea and discovered by Total in 2011," Total said in a press release.

"This is an important step to monetize the Absheron discovery, which has allowed us to design a cost-competitive development scheme by tying the field to existing infrastructure in order to deliver gas at a competitive price," said Patrick Pouyanne, chairman and CEO of Total.

Total said that the development involves the drilling of one well at a depth of 450 meters below the sea level. Production from this high-pressure field will be around 35,000 barrels of oil equivalent per day, including a significant portion of condensate. The output will supply Azerbaijan's domestic market.

Total added that the first phase of production will also enable a dynamic appraisal of the field for future phases.

Total has been operating in Azerbaijan since 1996. It now owns 40 percent of the Absheron field, with SOCAR holding another 40 percent and French electric utility company ENGIE holding the remaining 20 percent. Endi