ADNOC’s input in Azerbaijan’s Absheron project to cut likely investment risks – expert

BAKU, Azerbaijan, August 4. The
participation of the Abu Dhabi National Oil Company (ADNOC) in the
development project of Azerbaijan’s Absheron gas field will help to
reduce possible risks in capital investments, energy expert Ilham
Shaban said, Trend reports.

TotalEnergies and the State Oil Company of the Republic of
Azerbaijan (SOCAR) have agreed to sell ADNOC 15% of their stake in
the Absheron gas field. After the completion of this transaction,
which is subject to approval by the necessary authorities,
TotalEnergies will own a 35 percent stake in the Absheron gas
field, alongside SOCAR (35 percent) and ADNOC (30 percent).

According to Ilham Shaban, this will provide new viewpoints and
perspectives on Azerbaijan’s programs. According to him, Azerbaijan
has inked 40 production sharing and risk management agreements with
virtually no Arab companies.

The Absheron gas field, according to Shaban, has the same
complicated geological structure as Shah Deniz 2.

“However, the Absheron gas field is even deeper than the Shah
Deniz 2 field.” As a result, production at the Absheron gas field
will be carried out in a variety of technological ways. This is an
extremely costly project. As a result, both companies sold 15% of
their stake to an Arab corporation. This will result in an
additional reduction of potential hazards when investing in the
Absheron 2 project,” he stated.

JOCAP (Joint Operating Company Absheron Petroleum) operates the
Absheron gas field in the Caspian Sea.

TotalEnergies and its partner SOCAR (State Oil Company of the
Republic of Azerbaijan) recently announced the start of production
at the Absheron gas and condensate field in the Caspian Sea,
approximately 100 kilometers south-east of Baku.

Initial estimates place the field reserves at around 300 billion
cubic meters.