Russia and Turkmenistan to Partner in Offshore O&G Exploration

- Russia and Turkmenistan to Partner in Offshore O&G Exploration

Friday, August 12, 2011
OilPrice.com
by Charles Kennedy

Russia's Itera and Zarubehzneft have signed a Caspian production sharing agreement with Turkmenistan for exploring the country's offshore Caspian sector for oil and natural gas.

Itera general director Vladimir Makeyev and Zarubezhneft CEO Nikolai Brunich signed a production-sharing agreement to develop jointly the 21st block of Turkmenistan's sector of the Caspian.

The production sharing agreement stipulates that Zarubezhneft is the project operator and is authorized to do all the oil-production work under the PSA on behalf of the contracting companies, The Moscow Times reported.

Initial estimates by Itera and Zarubehzneft put Block 21's recoverable oil resources at 219 million tons, associated gas at 92 billion cubic meters, and natural gas at 100 billion cubic meters, with eventual investment in the project being up to $6 billion.

According to the PSA, which follows on from a September 2009 agreement signed between Itera and Turkmenistan's presidential state agency a 51 percent stake in the project will be transferred to Zarubezhneft, with Itera retaining the remaining 49 percent.

The PSA build on a decade-long effort by Itera and Zarubezhneft, which in 2001 signed an agreement with the Turkmen government regarding their intent to participate in the development of Turkmenistan's oil and gas sector.

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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Petronas Charigali, Turkmenistan Sign New Contract

- Petronas Charigali, Turkmenistan Sign New Contract

Wednesday, July 13, 2011
Knight Ridder/Tribune Business News
by H.Hasanov, Trend News Agency, Baku, Azerbaijan

The Malaysian state-owned Petronas Charigali petroleum company (operating in the Turkmen sector of the Caspian Sea since 1996), the State Agency for Management and Use of Hydrocarbon Resources under the Turkmen President, and the State Concern Turkmengas have signed an agreement for natural gas sales, an official Turkmen source reported.

This agreement coincides with the opening of a gas processing plant with a design capacity of 10 billion cubic meters of gas per year. It was built in the Caspian Sea town of Kiyanly. At the initial stage, the production will reach 5 billion cubic meters of gas.

The new plant will allow the company to begin exporting the associated natural gas from Turkmenistan, on whose resources Europe relies, with an attempt to diversify the sales markets.

One option to deliver Caspian resources is the Trans-Caspian Pipeline between Azerbaijan and Turkmenistan. This communication may be part of the large-scale Nabucco pipeline project.

As for oil, Petronas began the commercial production and export of raw material in May 2006, by using an oil transport route which passes through Azerbaijan and Iran.

Malaysia's Petronas Charigali is widely represented in Turkmenistan on the Turkmen market. The company signed the PSA with the Turkmen government in 1996 for the development of the Turkmen sector of the Caspian Sea. The contract area includes the fields Diyarbekir, Magtamguli, Ovez, Mashrikov, and Garagol- Denis.

Copyright (c) 2011, Trend News Agency, Baku, Azerbaijan

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