March 19, 2019, 10:57 / Business

Lukoil decided to buy 20% in the Absheron gas project in Azerbaijan

Lukoil of plans to acquire 20% in the Absheron gas project, Interfax reports, citing co-owner and president the company Vagit Alekperov.

“Both Total and SOCAR (the state oil company of Azerbaijan) have 10% each. Not yet [the memorandum has not been signed]. We have already submitted an appeal,” the businessman explained.

An agreement on exploration, development and shared distribution of production from the Absheron offshore block for a period of 30 years was signed in 2009. Now the project includes SOCAR (50%) and Total (50%, operator). The field is located 100 km from Baku at a depth of 500 m. The contract area is 747 sq. km. Based on the results of drilling the first exploration well, the presence of significant reserves was confirmed; they are estimated at 350 billion cubic meters. m of gas and 45 million tons of condensate.

Drilling of the first production well began in May 2018. The start of production is planned for 2020. Gas produced at the first stage of field development will be sent to the domestic market of Azerbaijan.