TODAY.AZ / Politics

Azerbaijan, France discuss energy issues

08 July 2015 [13:44] - TODAY.AZ

/By AzerNews/

By Amina Nazarli

A delegation led by Matthias Fekl, the Minister of State for Foreign Trade, Promotion of Tourism and French Nationals Abroad, visited the Azerbaijani Energy Ministry, as part of the Baku visit.

The sides discussed issues of energy cooperation between Azerbaijan and France.

Gulmammad Javadov, the deputy energy minister spoke about the history of the oil industry in Azerbaijan.

He highlighted the most interesting facts about oil production that had begun in Baku in 1847. Javadov informed the audience that Azerbaijan accounted for 50 percent of world's oil production by

1901. He also stressed the unparalleled role that Baku played in the victory over fascism, while mentioning that Azerbaijan produced 20 million tons of oil during the WWII.

The deputy minister stressed that the signing of the "Contract of the Century" greatly stimulated growth in the country’s oil production.

The Contract of the Century is a $7.4 billion production sharing agreement, which was signed in September 1994 between Azerbaijan and major oil companies, concerning the development of Azerbaijan's oil fields in the Caspian Sea.

Currently, Azerbaijan produces around 40 million tons per year. Its current goal is to deliver energy resources to Europe, the deputy minister noted.

Javadov stressed that the TANAP and TAP pipelines will allow the export of the country’s gas reserves from its "Shah Deniz-2" field.

He also touched upon the work carried out in reducing the country's economic dependence on oil and gas, as well as programs and projects realized in the field of alternative energy. Javadov noted that there is a need to benefit from the French experience in this direction.

Fekl, in turn, said that, energy cooperation with Azerbaijan covers the areas of oil production, geological exploration, and the petrochemical and gas industries.

Regarding the activities of French energy company Total in Absheron field, Fekl said that France is ready to provide financial support to gas projects.

Total and Azerbaijan’s energy giant SOCAR formed a joint venture in 2009 to explore and develop the Absheron field, with estimated reserves of 350 billion cubic metres (bcm) of gas and 45 tonnes of gas condensate.

Total launched exploration on the Absheron prospect in 2011 in the Caspian Sea and expects to commence production at the field in 2021.

Total and SOCAR both hold 40 percent stakes in the venture, which is expected to produce 5bcm of gas per year.

URL: http://www.today.az/news/politics/142080.html

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