French utility GDF Suez (GSZ.FR)Tuesday said it has acquired a 20% stake in the Exploration, Development and Production Sharing Agreement for the Absheron offshore block in the Azerbaijani sector of the Caspian Sea.

The two other partners in the Agreement are Total SA (TOT) and the State Oil Company of the Republic of Azerbaijan, or SOCAR, which each hold a 40% stake.

The license, operated by Total, is in the exploration phase; if it is successful, it will contribute to a significant increase in the GDF Suez Group's reserves, GDF Suez said.

This acquisition in Azerbaijan is in keeping with the Group's strategy to expand its proven and probable reserves, which totaled 704 million barrels of oil equivalent at the end of 2008.

Azerbaijan has substantial hydrocarbon reserves, estimated at 7 billion barrels of oil equivalent and more than 1.2 trillion cu.m of natural gas, mainly from the giant Shah Deniz gas field.

The country is a major exporter of oil and gas to the European and international markets, GDF Suez said.

Company Web site: www.gdfsuez.com