ELF ACQUIRES PAIR OF AREAS IN U.S.S.R.

Ste. Nationale Elf Aquitaine, Paris, has signed an agreement with the Soviet Ministries of Geology and Petroleum covering exploration and production in two onshore areas around the Volga River and in the Caspian Sea region. After signing the agreement May 23, Elf Pres. Loik Le Floch-Prigent described it as the first "classical oil development contract" the Soviet government had signed with a foreign company. He revealed few details of the agreement but said Elf will be operator and have the

May 28, 1990

2 min read

After signing the agreement May 23, Elf Pres. Loik Le Floch-Prigent described it as the first "classical oil development contract" the Soviet government had signed with a foreign company.

He revealed few details of the agreement but said Elf will be operator and have the right to sell its share of any oil produced.

WHAT'S PLANNED

Elf plans to begin seismic surveys within 1 year.

The company will use its personnel in the exploration phase, as well as Soviet teams. It also will use its own equipment but have recourse to Soviet equipment. Physical access to the area is assured by the Transport and Communications ministry.

Elf's share of production has not been established, Le Floch-Prigent said. He did not disclose the names of Soviet partners in the venture.

Le Floch-Prigent termed the Volga/Caspian area "promising." It has a small amount of production. Discoveries are likely to produce oil, gas, and condensate.

A source close to the French ministry of industry said finding and developing Soviet oil could give Elf access to the local marketing and distribution network, which is a state monopoly.