By OGJ editors
HOUSTON, June 13 -- Tethys Petroleum Ltd., Toronto, signed Tajikistan's first production-sharing contract with the minister of energy and industry in Dushanbe.
The 25-year contract area awarded to Tethys subsidiary Kulob Petroleum Ltd. covers 8.6 million acres, almost four times the area initially under discussion.
The block in southwestern Tajikistan covers almost the entire Tajik portion of the underexplored Afghan-Tajik basin. The block lies in the Kulob and Khatlon regions and the area around the capital city, Dushanbe. It includes more than 50 prospective structures identified by Tajik Geology.
The block, an extension of the Amu Darya basin in Turkmenistan and Uzbekistan, is believed prospective for light, sweet oil and gas-condensate, both of which have been produced. Tethys plans to appraise and rehabilitate existing discoveries and explore new targets.
KPL will recover 100% of its costs from up to 70% of production and share the remaining production 70-30 with the government, whose share includes all taxes, levies, and duties.
Meanwhile, Tethys Tajikistan Ltd. and Sangam Ltd. are forming a joint company, Seven Stars Energy Corp., to be owned and funded 51% by TTL and 49% by Sangam. The process is nearly complete, and ownership of KPL will then be transferred to SSEC.
The US Geological Survey in 2006 estimated mean undiscovered recoverable volumes of 1.6 billion bbl of oil and 16 tcf of gas in the Amu Darya and Afghan-Tajik basins in northern Afghanistan (see maps, OGJ, Aug. 14, 2006, p. 34).