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Ilham Aliyev: The Oil And Gas Sector Will Form The Basis Of Azerbaijan's Economy For A Long Time To Come

Ilham Aliyev: The Oil And Gas Sector Will Form The Basis Of Azerbaijan's Economy For A Long Time To Come

President of Azerbaijan, Ilham Aliyev, said that the oil and gas sector would form the basis of the Republic's economy for many years to come.

On Saturday, Aliyev attended a groundbreaking ceremony for offshore operations at the Absheron field at the Heydar Aliyev Baku deep-water Foundation plant.

"Today, the oil and gas sector is the basis of our economy, and this will be the case for many years to come. That does not mean that other sectors are not developing, despite their development, in the near future, revenues from these sectors will not take the place of profits from the sale of oil and gas," Aliyev's press service quoted him as saying.

According to the President of Azerbaijan, the reserves of the Absheron field amount to 350-360 billion cubic meters of gas and 100 million tons of condensate, and its development will be carried out in stages.

"I must also say that the gas extracted during the first stage of Absheron development will be directed to domestic needs, and this is also necessary. This is required by the growth of the population and industry. The gas produced at the second stage will be exported to world markets, " Aliyev said.

In November 2016, SOCAR and Total signed an agreement on defining the main contractual and commercial terms of the first stage of development of the Absheron gas condensate field. The project participants are SOCAR (50%) and Total (50% — operator). The contract is signed for a period of 30 years. The contract area is 747 square kilometers. At the first stage, the volume of production will be 1.5 billion cubic meters per year. At its peak, the project can produce about 5 billion cubic meters of gas per year.

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