TotalEnergies will make a final investment decision in the second half of 2026 for the second phase of the Absheron gas and condensate field in the Azerbaijani Caspian Sea. This phase is designed with a 30-year operational life, targeting first production by September 2029, and aims to add approximately 4.65 billion cubic metres of gas per annum to Azerbaijan's output.

Strategic Importance and Export Plans

The development is crucial for Azerbaijan's goal to increase gas exports to Europe, a market with typically higher prices and a need to replace lost Russian volumes. While the additional gas from Absheron is expected to be exported, a dedicated pipeline will also connect to the Azerbaijani grid, allowing up to half of the future production to be supplied to domestic customers.

Field Location and Partnership

The Absheron field is located between the BP-operated Azeri-Chirag-Guneshli (ACG) and Shah Deniz fields. TotalEnergies is the operator with a 35% share, alongside Socar (35%) and Abu Dhabi National Oil Company (Adnoc) (30%).

Phase Two Development Concept

This phase employs a different scheme from the first, which used a dedicated offshore platform. The new concept is based on subsea well templates and flowlines, avoiding any new permanent offshore platforms. It involves drilling three development wells, spaced 4-6 kilometres apart, using the semi-submersible rig Garabagh, with a potential optional fourth well.

Infrastructure and Processing

A 133-kilometre subsea pipeline will transport production from the new wells to an onshore central processing facility. Engineering and procurement for this facility are planned to start in August 2024, with construction completion targeted for late 2028 or early 2029. A separate pipeline will run alongside the main line to deliver monoethylene glycol from the onshore facility to the subsea wells, preventing hydrate formation.

Pipeline Installation and Export Routes

Pipelay work will primarily be handled by two vessels: the Israfil Huseynov and the Gurban Abasov. From the onshore facility, three pipeline connectors will enable product offloading:

• One will deliver natural gas to the South Caucasus Pipeline for export to Southern Europe.
• Another will link to the domestic gas grid.
• A third will deliver condensate to the BP-operated Sangachal terminal.