The Soviet Union continues to press its program to forge agreements for operations with non-Soviet partners.
In the latest action, the U.S.S.R. has started its first gas marketing joint venture in Europe through a linkup with Germany's Wintershall AG, the oil and gas subsidiary of BASF Group.
An agreement with Wintershall calls for Zarubeshgaz, a gas trading subsidiary of the Soviet Union's Gasprom group, to participate in joint marketing of gas from the Soviet Union and other sources in the former East Germany.
In addition, Global Natural Resources Inc., Houston, signed a joint venture agreement with the U.S.S.R.'s Tatneft, which operates the oil and gas fields of Tataria, west of the Ural Mountains on the Volga River.
The venture, named Tatex at first will install and operate crude oil vapor recovery units and compressors on most of Tatneft's production facilities, which currently handle about 800,000 b/d of oil. Tatex will exchange the recovered vapor for export crude oil.
GAS MARKETING
Wintershall's joint venture with Zarubeshgaz will become operational as soon as possible. It will plan, lay, and operate gas transmission lines and distribution networks.
The venture could move into gas marketing in West Germany and other parts of western Europe once Wintershall's Midal and Stegal pipeline projects start up.
The Midal line will link the North Sea coast with southern Germany. Wintershall said Stegal is designed to assure gas supplies to consumers in Saxony and Thuringia and move gas between what once were East and West Germany.
In addition to the venture with Zarubeshgaz, Wintershall is boosting its competitive position in the West German gas market through a link with Ste. Nationale Elf Aquitaine of France.
Wintershall and Elf have signed a letter of understanding that could lead to the French company becoming a partner in Midal. OEMV of Austria is already a partner in the pipeline.
The arrival of Elf could lead to the extension of Midal from southern Germany to the Fos LNG terminal in southern France. That would give German markets access to Algerian LNG.
The Wintershall-Zarubeshgaz venture will import about 8 billion cu m/year of Soviet gas at first. It is thought about 2 billion cu m/year could be used in BASF petrochemical operations.
Gasprom is the world's largest gas producer and exporter. It also produces crude oil, condensate, and sulfur. It employs 400,000 people and is being converted from a state owned enterprise into a stock corporation.
As the U.S.S.R.'s leading integrated gas enterprise, it operates a 136,000 mile high pressure gas transmission network.
Wintershall said the joint ventures with Gasprom mark the first significant step into the European market by a Soviet company with a western partner.
The Soviets had given a clear indication, said Wintershall, of their commitment to investments feasible only on the basis of long term peace policies.
VAPOR RECOVERY
The Tatex accord culminates a protocol signed in second half 1989.
Tatex will be owned 50% by Tatneft and 50% by Texneft Inc., an 89% owned subsidiary of Global. The remaining interest in Texneft, which is an after payout interest, will be owned by Core Resources, a privately held company of San Antonio, which initiated and assisted in formation of the venture.
Another company, which also assisted in initiation of the venture, may qualify under certain circumstances to receive an after payout participation. In that case, Global's after payout interest in Texneft will be 80%.
Global said vapor recovery will substantially reduce hydrogen sulfide emissions and other pollutants in Tataria.
Texneft will supply hard currency and technology to the venture, and Tatneft will supply the ruble component and Soviet support. Financial support for the first phase is expected to entail $3.225 million and an equal sum in rubles before the joint venture becomes self-sustaining.
Tatex will sell its crude oil on the international market for hard currency.
When all planned facilities have been installed, expected to require as long as 30 months, Tatex expects to be exporting about 3,500 b/d earned in exchange for recovered vapors.
Tatex plans other operations, including development of oil and gas fields in Tataria and extension of its vapor recovery activities to other areas of the U.S.S.R.
Tatex has the exclusive right, for a limited time, to develop five fields in Tataria. One of these is believed to hold reserves of more than 1 million bbl. Tatex also has the right to establish branches or affiliates in other parts of the world.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.