Kazakhstan

First deliveries from Akkulka gas field in Kazakhstan under a gas sales contract are expected by the end of September, said Tethys Petroleum Ltd., Guernsey, UK.

Sept. 17, 2010

By OGJ editors
HOUSTON, Sept. 17 – First deliveries from Akkulka gas field in Kazakhstan under a gas sales contract are expected by the end of September, said Tethys Petroleum Ltd., Guernsey, UK.

Gas flows from Kyzyloi and Akkulka fields along a company-built 56-km pipeline to Tethys’ booster compressor station adjacent to the tie-in point to the major Bukhara-Urals export trunkline system, where gas-fired compressors compress the gas into the trunkline.

Kyzyloi field Phase 1 gas production is already being sold under the long-term take-or-pay contract with Asia Gas NG LLP at $36/Mcm including value added tax that the company can recover. The Akkulka Phase 2 contract is also with Asia Gas at $38 for domestic sales.

The new Akkulka contract is for 2 years with the parties agreeing to assess the price after 1 year. The Phase 2 average daily contract quantity is expected to be 500 Mcm, which gives a total production for both phases together of approximately 1,000 Mcmd.