AU.K.-Russian joint venture has disclosed an agreement in principle to develop and explore further the Inchke-More area of the Russian Caspian Sea.
J.P. Kenny Exploration & Production Ltd. (JPK Expro), Guildford, U.K., expects to produce first oil from Inchke-More field in 1996.
Project partners are Dagneft, the state oil company of Dagestan; and RusCaspNeft, a joint venture between Lukoil, the Russian energy ministry's Rosneft, and the Krasnobarricades Construction yard in Astrakhan.
Project interests are still being negotiated. But JPK Expro expects that the joint venture will operate under a production sharing agreement with the Russian government.
JPK Expro also expects Inchke-More to be developed using two production platforms sending oil to shore by pipeline. Further links in the export chain have yet to be decided. .Development will be staged.
The first phase will involve production from a shallow reservoir estimated to hold 20-60 million bbl of oil.
Second phase will involve production from a deeper reservoir. This is thought to hold more oil than the shallow reservoir, but reserve estimates are not available.
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