Azernews.Az

French energy giant Total announced Friday that it has discovered a huge natural gas field in Azerbaijan's sector of the Caspian Sea holding projected reserves of several trillion cubic feet of gas and associated condensates.

Total Senior Vice President Exploration Marc Blaizot said the discovery of reserves at the Absheron structure, located some 100 kilometers south east of the capital Baku, "could be very significant in terms of resources".

An accurate estimate of the reserves will be drawn up after further drilling operations, Total said in a statement.

Ilham Shaban, who heads the Baku-based Oil Research Center, says that according to preliminary estimates, the field may hold 200-300 billion cubic meters of gas.

"About 1 trillion cubic feet of gas have been discovered in the first layer alone, which amounts to some 35 billion cubic meters," he said.

The deposit started yielding gas at a depth of 6,550 meters and geologists at the site say the gas field could extend for some 270 square kilometers.

The contract on the Absheron block was signed in February 2009 by Azerbaijan’s state energy firm Socar and Total. The project’s participating interests are: Socar and Total with 40 percent each, and Gaz De France Suez with 20 percent.

This is the second attempt by foreign energy companies to tap the Absheron field. In 1997, the first production sharing agreement was signed for exploration and development of the contract area between Socar and US ChevronTexaco. Socar had 50 percent of equity participation, while ChevronTexaco held 30 percent and acted as the operator of the project, and Total had 20 percent. However, after drilling, Absheron’s reserves were considered commercially unattractive, and the contract was invalidated.

‘Remarkable event’
Azerbaijani President Ilham Aliyev regarded the Absheron find as "a remarkable event" while hosting Total’s Senior Vice President Michael Borrell on Friday.

"The discovery of the new gas field will further strengthen Azerbaijan’s standing as one of the world’s biggest
gas producers," Aliyev said. "This remarkable event is another graphic example of the fact that Azerbaijan’s oil and gas reserves are many times larger than the volumes proven so far."

Total production
In Azerbaijan, Total has been present since 1996. In the country, the Group’s equity production reached 13,000 barrels equivalent of oil per day in 2010 from the Shah Deniz field in which Total holds a 10% share.

Total holds a 10% interest in South Caucasus Pipeline Company, owner of the SCP (South Caucasus Pipeline) gas pipeline that transports the gas produced in Shah Deniz to the Turkish and Georgian markets. Total also holds a 5% interest in BTC Co., owner of the BTC (Baku-Tbilisi-Ceyhan) oil pipeline, which connects Baku and the Mediterranean Sea.