Total, SOCAR move on Caspian field

BAKU, Azerbaijan, Feb. 27 (UPI) -- French supermajor Total and the State Oil Co. of Azerbaijan Republic signed a deal Friday for exploration and development of an offshore oil and gas block.

Total and SOCAR in 2008 set the preliminary arrangements for the production, development and exploration at the Absheron oil and gas block in the Azeri waters of the Caspian Sea. Total would take a 60-percent stake as the field operator, with SOCAR holding the remaining 40 percent.

SOCAR President Rovnag Abdullayev said both parties moved on the deal because of joint interest in developing the vast natural resource potential in fields located in the Caspian Sea, the Azeri Press Agency reports.

Total has been active in Azerbaijan since 1996, participating with a minor stake in the offshore Shah Deniz natural gas field.

Abdullayev said the Total deal added to the growing interest in his country's vast energy potential.

"As result, $30 billion was invested in Azerbaijan," he said. "Foreign investment plays a vital role in the development of oil and gas fields."