French oil company Total has expressed hope that the Azerbaijani government will help it with sale of gas, which will be extracted on the offshore field Absheron, reported the Azerbaijan Energy Ministry.
“Total Vice President for Azerbaijan, Kazakhstan and Tajikistan Terry Derrigran said during the meeting with Deputy Energy Minister of Azerbaijan Natig Abbasov that the company needs support with sale of gas, which will be extracted on the Absheron field,” said the same source.
Abbasov added that capacities of the TANAP and TAP pipeline will allow exporting gas from the Absheron field in the future.
Total administration said earlier that the company plans to start extraction of first gas from the Absheron field at the end of 2021-early 2022.
Sources from SOCAR said that till now French company did not solve the main issue – sale of extracted gas. Total is not a shareholder of any of the pipeline consortium (SGC, TANAP and TAP). Export of gas to the buyer involves significant costs. The gas extraction in the deep-water section of the Caspian Sea especially with use of manifolds demands significant investments for development of the initial stage of Absheron.
Thus, since last summer Total company has been looking for the ways to develop the fields. Judging by the statement made by Total Vice President for the Region, Total hopes for the support of the Azerbaijani government.
The agreement on exploration, development and distribution of shares from the Absheron offshore bloc was signed on February 27, 2009. Currently the project partners include SOCAR (40%), Total (40% operator) and GDF Suez (20%). The contract has been signed for the period of 30 years. The contract area is 747 sq.km.
After drilling of the first exploration well Total confirmed in September 2011 presence of significant gas resources, which are estimated at 350 bcm and 45 million tons of condensate.
Absheron bloc is located 100 km away from Baku on the depth of 500 meters.—0—
Economics
-
Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
-
Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
-
Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
-
In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
Leave a review