Total secures deal for Absheron block

Total will operate the shallow-water Absheron Block off Azerbaijan under an exploration, development, and production-sharing agreement signed with Azerbaijan's SOCAR.

Uchenna Izundu
OGJ International Editor

LONDON, Feb. 27 -- Total SA will operate the shallow-water Absheron Block off Azerbaijan under an exploration, development, and production-sharing agreement signed with State Oil Co. of Azerbaijan Republic (SOCAR).

The block is in the Caspian Sea, 100 km from Baku in 500 m of water.

Total will operate the exploration phase, but will form a new operating company for the development phase. Total will hold a 60% interest, and SOCAR will hold 40%.

"This agreement enters into the framework of the group's global exploration strategy," said Yves-Louis Darricarrère, president of exploration and production at Total.

Its Azerbaijani production averaged 18,000 boe/d in 2008 from Shah Deniz field in particular, in which it has a 10% interest. A second development phase is under consideration.

Contact Uchenna Izundu at uchennai@pennwell.com.

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