Total denies media reports on closure of Baku office

Total said the company indeed closed the office of TOTAL Exploration and Production Azerbaijan established in 1997 to participate in the project on development of the Absheron offshore field where the company possesses 20 percent of stakes. However, the office of Total E&P Absheron BV continues its activity.

Besides Total Exploration and Production Azerbaijan, the American ChevronTexaco (operator - 30 percent) and SOCAR (50 percent) also participated in the PSA contract on the Absheron field signed on Aug. 1, 1997. Later, the Absheron partners decided to close the project after revealing commercially unattractive volumes of hydrocarbon.

Several years later, Total launched discussions with SOCAR on perspective of its participation in the Absheron project. As a result of the talks, in February 2009, Total E&P Absheron BV acquired 60 percent of shares in the Absheron project and SOCAR - 40 percent. Later this year, Total E&P Absheron BV assigned 20 percent of its shares in the Absheron project to Gaz de France SUEZ (GDF/SUEZ.

The current shareholders of the Absheron field are the Azerbaijani SOCAR - 40 percent, French Total- 40 percent and GDF/SUEZ - 20 percent.

One exploration well worth $100 million will be drilled in the Absheron field in three years. Its designed depth will be6,500 meters. Drilling can begin by late 2009.

Two exploration wells can be drilled further within three years. The Absheron field is 100 kilometers of Baku and at 500 meters of depth.

/Trend Capital/