Tyumen Oil obtains Siberian exploration licenses

Russia's Tyumen Oil Co. (TNK) Monday said it has received two exploration licenses in East Siberia from the Russian Ministry of Natural Resources Commission. TNK will drill for gas in the Khanda and Yuzhno-Ust-Kut, in Irkutsk near the Chinese border.


Russia's Tyumen Oil Co. (TNK) Monday said it has received two exploration licenses in East Siberia from the Russian Ministry of Natural Resources Commission. TNK will drill for gas in the Khanda and Yuzhno-Ust-Kut blocks, in Irkutsk near the Chinese border.

The company said it expects to find significant gas in both blocks, which it postulates hold total reserves of 10 tcf of gas and about 135 million bbl of gas condensate. The terms of the licenses allow for drilling exploration wells and conducting seismic surveys over 5 years.

The two fields are adjacent to the giant Kovykta gas field being developed by Rusia Petroleum, which is owned by a number of Russian and foreign companies, including BP Amoco PLC.

TNK plans to approach BP Amoco to work out a possible strategic cooperative agreement on joint development of the fields, said Simon Kukes, president and CEO of TNK. "Given the expected results, we think that it would be economically advantageous to both companies to coordinate exploration efforts."

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