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Fitch Solutions: Total can start work on the first phase of the Absheron project

31 October 2022 14:12 (UTC +04:00)

"In July 2022, Azerbaijan signed an agreement with the EU to double exports of gas to Europe to 20bcm per year by 2027. Our Oil and Gas team expects this to lead to a steady stream of projects coming on stream, including the Shah Deniz II project, which was interrupted by the Covid-19 pandemic, as well as the currently delayed first phase of the TotalEnergies Absheron project and several others in exploration and pre-final investment decision development stages, including Umid-Babek, ACG Deep Gas and Shafag-Asiman," said Anvita Basu, head of Europe country risk at Fitch Solutions, APA-Economics reports.

"This will as a result support growth in fixed capital that suffered severe weakness during the Covid-19 pandemic. That said, growth in the oil and gas sector simply means that Azerbaijan will remain heavily dependent on the commodity sector and as such beholden to volatile price movements in the global market. Interestingly, the EU’s dependence on Azeri oil will likely make it less critical for Azerbaijan’s assertive policy against Armenia."