The pace of joint ventures forming for field development projects in the Commonwealth of Independent States continues at a fast clip.
Among the latest action:
- Uzbek interests and a U.S. group have agreed to jointly develop Mingbulak oil field in Fergana Valley, Uzbekistan.
- A Japanese group plans a joint venture with a production association in Russia to increase oil output from fields in the Ural-Volga region.
- A Houston company has signed a protocol of intent with a production association in Kazakhstan to develop Tenge field near the Caspian Sea.
UZBEKISTAN JOINT VENTURE
Uzbekistan's state oil company Uzbekneft and Stan Cornelius Consortium, a group of investors and technical personnel headed by Bambridge Island, Wash., businessman Stanley Preston Cornelius, have formed Uzbec Petroleum International JV to develop Mingbulak field, site of a Mar. 2 oil well blowout (OGJ, May 18, p. 39).
Each partner holds 50% interest in the joint venture, which has a 28 year production sharing contract to develop the field. The joint venture plans an initial drilling program of 13-17 wells in the first 5 years to be drilled to 15,000-18,000 ft targeting Neogene and Paleogene reservoirs. The Cornelius group estimates field reserves at about 800 million bbl of oil. Four rigs will be employed in the drilling program, and the group expects drilling time to be about 120 days for a 15,000 ft well and 160-170 days for an 18,000 ft well. The first well is to be spudded by April 1993.
CONTRACT TERMS
The goal of the Uzbek joint venture is to establish an integrated oil company for the republic that will explore for and develop reserves, construct an infrastructure for gathering, transporting, refining, and selling crude and refined products within and outside the republic. The joint venture is to be capitalized at $100 million, and the Cornelius group has agreed to reinvest at least 15% of its profits in developing the republic's oil industry. The joint venture will be exempt from tax its first 5 years of operation.
The project also includes constructing gathering lines, tank farms, and possibly a 25 km pipeline, arranging financing for construction of added refineries in Fergana Valley, detailed studies for building an international export pipeline, and training Uzbekistan residents in all aspects of the oil and gas industry. The Cornelius group has pledged $2.5 million the first year of the project to construct housing and develop social programs.
All hydrocarbon rights, including export rights after meeting demand in Uzbekistan, have been transferred to the Cornelius group, and if primary recovery methods fail to produce at least 733 million bbl of oil, Cornelius will be allowed exclusive exploration and development rights in another field or fields until the 733 million bbl minimum requirement is met.
MINGBULAK FIELD
A feasibility study conducted over the area noted the field is on an unfaulted anticline that covers more than 20,000 acres in the central basin of Fergana Valley.
The study said there are numerous oil and gas fields in the valley producing from Neocene, Paleocene, Cretaceous, and Jurassic reservoirs.
The first well in Mingbulak field was drilled in the 1970s, encountered upper Neogene sandstone at 15,930 ft subsea, and was plugged and abandoned to prevent a blowout. A second well also was plugged. The No. 3 well drilled and tested the entire target section to 18,700 ft subsea, identifying upper Neogene sandstone and two lower Paleogene limestones as productive reservoirs, but it too was plugged while trying to prevent a blowout in a lower Paleogene section. The No. 4 well was not drilled, The No. 5 well was unintentionally swabbed in upper Neogene sandstone at 15,700 ft subsea, then blew out and caught fire in early March this year.
The Cornelius group said the well flowed 150,000 b/d of 30.8 gravity oil for more than 60 days before being capped. The joint venture's development program includes working over the No. 5 well to reestablish production from upper Neogene.
The joint venture expects Mingbulak field to produce for 12-20 years, and there are plans to introduce secondary and tertiary recovery methods if economically feasible.
URAL-VOLGA AREA
Japanese firms Teikoku Oil Co., Mitsui Oil Exploration Co., Toyo Engineering Corp., and Santech Co. plan to form a joint venture with Russia's Kuybyshev production association to increase production from fields in the Volga-Ural region.
The group plans to introduce chemical injection into some of the 100 fields in the area, where production has been declining and currently averages about 300,000 b/d, Asahi News Service reported. Itar-Tass News Agency reported the technique will be used on 20-30 wells.
TENGE DEVELOPMENT
Anglo-Dutch Petroleum International, Houston, has signed a protocol of intent with the Mangyshlakneft production association to develop Tenge field in Kazakhstan's Mangystau region.
Details of the agreement were not disclosed, but feasibility studies are in progress. Tenge field reserves are estimated at about 500 million bbl of oil and 1 tcf of gas.
Tenge field lies on the eastern shore of the Caspian Sea and about 350 km west of Tengiz field.
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