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Project Insights

Azeri offshore in need of European price rise

IOCs involved in E&P projects offshore Azerbaijan are launching exploratory drilling programmes in their blocks, but are likely to wait for European gas prices to rise before taking FIDs on export projects IOCs involved in E&P projects offshore Azerbaijan are launching exploratory drilling programmes in their blocks, but are likely to wait for European gas prices to rise before taking FIDs on export projects.
By Silvia Favasuli 9 May 2019 Europe & Russia / Exploration & Production 0 34198
Gas projects in the Azerbaijani section of the Caspian Sea

Azerbaijan’s offshore sector has seen a number of developments in recent months, including plans for new exploratory drilling programmes and the sanctioning of the Azeri Central East oil project, which involves associated gas.

But FIDs on projects destined to export are unlikely be taken until Europe’s gas prices increase. Investments will need a hub price of $7.08/MMBtu. Month-ahead prices at the TTF hub have averaged $5.75/MMBtu since the start of the year.

Gas...