JOINT VENTURE READY TO EXPORT SOVIET CRUDE

The first Soviet-U.S. exploration and production joint venture is poised to begin exporting oil from the U. S. S. R. Meanwhile, the Soviet news agency Tass reported another Soviet-U.S. E&P joint venture has been formed, this one with Amoco Corp.

June 24, 1991

3 min read

The first Soviet-U.S. exploration and production joint venture is poised to begin exporting oil from the U. S. S. R.

Meanwhile, the Soviet news agency Tass reported another Soviet-U.S. E&P joint venture has been formed, this one with Amoco Corp.

Crude oil produced in western Siberia by White Nights Joint Enterprise is expected to leave the Soviet Union by tanker before the end of July, U.S. partners have reported. The crude will move through a terminal at the port of Novorossysk on the Black Sea, about 1,500 miles from joint venture operations in Tagrin and West Varyegan fields of western Siberia.

All export and transportation licenses have been approved, White Nights' Anglo-Suisse (U.S.S.R.) Ltd. and Phibro Energy Inc. said. Anglo-Suisse and Phibro own 50% of the joint venture and Soviet producing association Varyegan Oil & Gas 50%.

White Nights has shipped three.drilling rigs to western Siberia, the last airlifted from Houston in mid-June aboard an Antonov AN-124 Soviet aircraft.

WHITE NIGHTS OIL

White Nights oil ready for export was produced from Tagrin and West Varyegan wells reworked earlier this year by Soviet crews apply-ing western technology with Soviet equipment.

Production is gauged in the field, before entering trunklines in the region. Following a "deemed transportation time," the Soviet export company Soyuznefteexport, Novorossysk, credits the joint venture with the measured volume less a small shrinkage factor.

Anglo-Suisse said Soviet crews last January began removing plugs and reperforating wells in joint venture areas, using electric line and slick line equipment.

Assets acquired to date by the joint venture include 14 pulling units and five drilling rigs, all Soviet made.

The first two western rigs sent by White Nights to western Siberia-a Cooper 750 workover/drilling rig and an Emsco C-1 service rig-are owned by Parker Drilling Co., Tulsa.

Parker's Cooper 750 unit on June 20 was to begin moving by rail from Leningrad to Radujny. It shipped from Singapore in mid-May. Parker's Emsco C-1 rig had worked most recently in western Oklahoma, was prepared for shipping at Parker's yard in Odessa, Tex., and was shipped from Houston, also about mid-May.

The third unit, airfreighted from Houston, is a hydraulic HDR-400 service rig owned by Hydraulic Workover Inc., Lafayette, La. All three rigs are expected to be field ready by about July 1. White Nights expects to start lifting oil produced with western equipment within 30 days.

Anglo-Suisse expects to ship a fourth rig to western Siberia this summer.

AMOCO DEAL

In Azerbaijan, Tass said the republic and Soviet Oil Ministry Amoco Corp. to help develop Azeri field off Baku in 360-390 ft of water in the Caspian Sea.

Tass said Amoco was chosen because of its experience in international cooperation and its advanced off shore oil and gas production capabilities.

Recoverable Azeri oil reserves are estimated at 250 million tons.

Azerbaijan and Soviet officials picked Amoco's offer over a bid by Unocal Corp. and a joint bid by British Petroleum Co. plc and Norway's Den norske stats oljeselskap AS, Tass said.

Development is not expected to begin for at least 18 months. No other details were disclosed.