Total, Socar sign Absheron block agreement
Total SA will operate the Absheron block in Azerbaijan under a heads of agreement (HOA) signed with that nation's oil company Socar.
LONDON, June 6 -- Total SA will operate the Absheron block in Azerbaijan under a heads of agreement (HOA) signed with that nation's oil company Socar.
The HOA sets out the main terms for a production-sharing agreement, under which Total has a 60% interest and Socar holds 40%. Absheron block lies in the Caspian Sea in 500 m of water, about 100 km southeast of Baku and just east of Shah Deniz gas-condensate field.
Total said this exploration contract would further extend its ties with Azerbaijan, and would support the development of Azerbaijan's oil and gas industry over the long term.
Total, which has a 10% interest in Shah Deniz field, has had a presence in Azerbaijan since 1996. Its production averaged about 11,000 boe/d in 2007.
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