World's Energy

February 27, 2009 - The Associated Press - BAKU: Azerbaijan's state-owned oil company and France's Total SA on Friday signed a production-sharing agreement for the Absheron Block offshore gas field in the Caspian. Executives of the State Oil Company of Azerbaijan Republic (SOCAR) and Total signed the 30-year deal in Baku. Total is to own 60 percent of the enterprise and SOCAR will have the remaining share. SOCAR president Rovnag Abdullaev said the joint company would foot the bill for the 3-year exploration period. Drilling of the first test well is expected to cost $100 million. But two extra wells may be required, said Total vice-president Yves-Louis Darricarrere. Under a previous deal for the gas field, Absheron's reserves were estimated to reach 1 to 3 trillion cubic meters of gas, 160 million tons of condensate and 120 million tons of oil.