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An international group of companies has agreed to develop gas reserves in Uzbekistan for sale to markets in Russia.
In letters of intent disclosed early this month, RAO Gazprom, Uzbekneftegaz, and the Enron Oil & Gas International Inc. (EOGI), unit of Enron Oil & Gas Co. (EOG), Houston, agreed to form a joint venture to develop 15 fields in Uzbekistan's Surhandarya and Kandym regions holding reserves estimated at more than 20 tcf. In addition, fields to be included in the deal have recoverable liquid hydrocarbon reserves estimated at more than 600 million bbl.
Interests of venture partners still are to be determined, but Gazprom will share equity in field development and buy all gas produced by the venture for pipeline system supply.
Partners in the proposed venture are not yet prepared to discuss details of the project. But the westernmost fields are closest to existing pipelines and likely will be developed first.
EOGI last week had a technical team in the field reassessing the extent of the resource base to be dedicated to the project.
Following field evaluations, partners are to prepare a study to include a field development plan. At that point, partners are to complete venture arrangements and settle related cost, production sharing, price, and marketing issues.
"Prior to the break up of the U.S.S.R., Uzbekistan produced and delivered significant quantities of gas into the Gazprom system," said Forrest E. Hoglund, EOG chairman, president, and chief executive officer. "Because all parties to the venture are intent on seeing gas again flowing through the existing infrastructure to markets in Russia, we are optimistic that contracts could be finalized and gas could be flowing from these fields as early as 1996-97."
Enron said geology and topography of the Surhandarya and Bukhara regions are similar to the Permian basin of West Texas and Southeast New Mexico, where EOG is active.
EOG in 1994 produced an average 749 MMcfd of gas and at yearend 1994 had reserves amounting to more than 2.1 tcf of gas equivalent.
Among EOGI's international activities, a wholly owned subsidiary produces 140 MMcfd of gas from fields off Trinidad and Tobago in the Caribbean. Another EOGI unit in late December 1994 signed agreements covering production sharing, joint operations, and product sales for Tapti, Panna, and Mukta fields off India.
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