TEXACO-SOVIET DEAL PLANNED

A unit of Texaco Inc. last week disclosed it has signed an agreement on principles of cooperation with the Soviet Union's Ministry of Geology for a proposed upstream joint venture. Texaco Petroleum Development Co.'s agreement covers exploration, development, and production in areas of the Timan-Pechora region in northern European Russia.

Aug. 20, 1990

2 min read

A unit of Texaco Inc. last week disclosed it has signed an agreement on principles of cooperation with the Soviet Union's Ministry of Geology for a proposed upstream joint venture.

Texaco Petroleum Development Co.'s agreement covers exploration, development, and production in areas of the Timan-Pechora region in northern European Russia.

Texaco said the areas have high prospects for exploration and development of oil and gas fields with reserves estimated at "well in excess" of 5 billion bbl of oil. The company is studying ministry data covering oil and gas resources of the areas and their infrastructure.

Negotiations are to proceed toward details of a joint venture project for the region. Operations would be carried out mainly by Soviet personnel, supplemented by Texaco technical staff.

The agreement also calls for Texaco to organize seminars for Ministry of Geology personnel, dealing with technical and economic aspects of exploration/development.

Texaco Europe Research Inc. agreed earlier to cooperate in research with Vniizarubezhgeologia, the All-Union Research Institute of the ministry. As part of that accord, Texaco and institute personnel will process geophysical and geological data to assess oil and gas potential in Soviet Union and other basins (OGJ, May 28, Newsletter).