MORE TRACTS OPEN IN FORMER U.S.S.R.

More exploration and development acreage is on the bidding block in the former Soviet Union.

In the latest action:

• Turkmenistan opened its second international round for onshore and offshore acreage in the South Caspian basin. Included are three tracts with fields holding proved and probable reserves estimated at 1 billion bbl of oil and 7 tcf of gas.

• Russia's Khanty-Mansiisk autonomous province in western Siberia is seeking bids for development of five oil fields and exploration and development of two prospects in joint ventures with Russian companies. Vladimir P. Sherbakov, deputy chairman of the Russian Committee on Geology and Usage of Mineral Resources (Roskomnedra), said, "The licenses on offer are in a region of high oil bearing potential. The area also is promising for discovery of new reserves."

Meantime, Russia's Tomsk oblast extended to July 30 the deadline for bids on acreage in the southeast part of the western Siberia basin.

Among current projects, GHK Co., Oklahoma City, began the first shipment of equipment to fulfill its contract to work over about 40 wells for the Kuibyshevneft Production Association of Samara, Russian Federation.

TURKMENISTAN'S SECOND ROUND

As in the first international round concluded in January 1993, Turkmenistan's second round acreage is to be assigned under 25 year contracts with optional 10 year extensions to 50-50 joint ventures to include at least one foreign partner and a designated local production association (OGJ, Feb. 8, p. 38).

Bids for blocks in the second round are to be submitted by Nov. 12, 1993. Bidders offering the highest cash bonus equal to or more than a specified minimum will be awarded the acreage at a date to be announced.

Terms and organization of second round joint venture contracts are expected to conform generally to first round contracts. As in the first round, each agreement is expected to specify a minimum investment and work commitment, as well as the winning joint venture's share of existing and future production. Royalties are to be paid to the Government of Turkmenistan on sliding scales based on production volumes.

In the first bidding round, Turkmenistan received combined bonuses of more than $65 million for three blocks with total proved reserves estimated at more than 1.1 billion bbl of oil and 4.9 tcf of gas. Winning bidders agreed to spend a combined $160 million during the first 5 years on the tracts, plus specified shares of future revenue.

A fourth tract, Gubkin-Livanov Block I in the Caspian Sea, did not receive an acceptable offer. Turkmenistan had sought a minimum bid of $25 million and a minimum work commitment of $50 million during 5 years.

Turkmenistan has included Block I in the second round. Two onshore tracts also are being offered: Barsa-Gelmes Block V and adjacent Burun Block VI. Block I is to be developed in partnership with the Chelekenmorneftegas production association and Blocks V and VI with Turkmeneft.

Material prepared for the first bidding round shows Block I is a nonproducing tract with adjusted undeveloped reserves estimated at 454 million bbl of oil and 2.2 tcf of gas.

Officials said the Gubkin-Livanov structural ridge runs more than 50 km across Block 1. Tests of crestal or near crestal wells have indicated production rates of 15-35 MMcfd of gas and 400-2,100 b/d of oil or condensate are possible.

Blocks V and VI include parts of a massive ridge that crosses western, central, and eastern Koturtepe fields on Block III, awarded in January to a 50-50 venture of Eastpac International, Dubai, and Turkmeneft production association. Barsa-Gelmes and Burun fields appear to be separate apexes along the ridge divided in part by faulting and in part by structure. With more development, fields on Blocks III, V, and VI likely will run together, Turkmen officials believe.

More information about the bidding round's schedule, tract geological, geophysical, and engineering data, and work commitments expected of winning joint ventures is to be issued in tender registration packets available from either Wavetech Geophysical Inc., Denver, or GeoInterTech joint venture, Moscow.

KHANTY-MANSIISK ACREAGE

Khanty-Mansiisk's fields are offered under four licenses for development with Russian partners.

Tailakova field is to be developed in partnership with Obneftegazgeologiya, based in Surgut, a state production association that forms part of Roskomnedra; and Tyumenneftegaz of Tyumen, a state production association

West Salym and Vadelyp fields will be developed in partnership with Evikhon, based in Nefteyugansk, a joint stock company formed 1992 by a group of regional production associations and local ventures.

Upper Salym field development partner will be Evikhon.

Polunyakh field partners will be Obneftegazgeologiya and Tyumenneftegaz.

Bids are sought from foreign companies and/or Russian enterprises, individually or in groups, for exploration and development of:

• South Kamyn block, which lies adjacent to Bittem oil field and near the large North Kamyn, Ai-Pim, Kamyn, and Lyantorsk oil and gas fields.

• Aiyaun-Tailakova block, adjacent to Tailakova, Polunyakh, and Urensky oil fields.

New state oil company Rosneft may join in the bidding. The Committee of People's Deputies of Khanty-Mansiisk Autonomous Okrug said it is ready to guarantee favorable returns on operating investments and a stable tax regime (OGJ, Mar. 1, Newsletter).

By May 15 bidders are required to submit an application listing chosen fields, buy geological information packages, pay a $3,000-7,000 participation fee depending on the number of bidders in their group, and pay a deposit of $500-1,000.

By July 15 participants are required to submit a technical and economic feasibility study and a sealed envelope stating their cash bid. The winner for each project will be the highest bidder, provided that development plans are approved by a panel assembled by the Khanty-Mansiisk government and Roskomnedra.

Bids will be evaluated July 15-Sept. 15, and bid envelopes will be opened at a public meeting. Participants will be notified of the meeting date.

KHANTY-MANSIISK FIELDS

Khanty-Mansiisk's Tailakova field involves five oil bearing structures with total estimated recoverable reserves of 835 million to 1.25 billion bbl of oil. Forty-nine wells have been drilled in the field. Average production was 22-51 b/d/well.

Tailakova lies 140 miles south of Surgut. A major oil pipeline and a railway, connecting northern Tyumen with Central Russia, pass about 100 miles northwest of the field. There are no settlements or roads in the field.

West Salym and Vadelyp fields, offered together, hold estimated recoverable reserves totalling 1.08 billion bbl of oil. Twenty wells were drilled in West Salym field and seven in Vadelyp. Production tests of six Vadelyp wells ranged from 20 to 100 b/d.

West Salym field, 85 miles southwest of Nefteyugansk, is adjoined by Vadelyp field to the south. The Ust-Balyk-Omsk oil pipeline and a parallel railway pass about 20 miles southeast.

Upper Salym field reserves are estimated at 486 million bbl of oil. Twenty-four wells have been drilled, finding five oil bearing zones. Some of the pays showed low productivity. Maximum flow rate was 150 b/d through a 4 mm choke.

Upper Salym field lies 90 miles southwest of Nefteyugansk, while the Ust-Balyk-Omsk pipeline is 15 miles to the southeast.

Polunyakh field was discovered 1990. Eight wells have been drilled, and drilling continues. Tests showed flow rates of 17-37 b/d/well. Recoverable reserves are estimated at 520 million bbl of oil.

Polunyakh field lies 110 miles south of Nefteyugansk, with no nearby fields under development. The Ust-Balyk-Omsk pipeline and the railway pass 60 miles northwest of the field.

KHANTY-MANSIISK PROSPECTS

Bidders on Khanty-Mansiisk exploration prospects may be Russian enterprises or foreign firms, singly or in groups. By Apr. 30, bidders must submit an application setting out which block will be bid for.

By May 30 participants must purchase geological information packages, pay a $5,000-7,000 license fee depending on the number of partners, and submit a sealed envelope detailing the cash bid. Again, the winner of the license will be the highest bidder, provided exploration plans are approved.

Prospect bids will be studied July 15-Aug. 15, and a public meeting will be conducted to announce the winners based on contents of the sealed envelopes.

The South Kamyn block has been surveyed using geophysical and geological methods. There are no deep holes on the block.

The structure is mainly postulated from drilling on adjacent blocks, particularly in Bitten oil field. The Bitten reservoir covers 60 sq miles with an effective 10 ft oil saturated thickness.

The Aiyaun-Tailakova block was surveyed using gravimetric, aeromagnetic, and seismic techniques. Four deep wells were drilled. Ai-Yaun field covers 10 sq miles, with hydrocarbon bearing layers at depths of 3,000-3,200 ft. Wells produced as much as 125 b/d.

Khanty-Mansiisk data were prepared by Jebco Seismic Ltd., London, in standard software format. Packages are available from Jebco's London and Houston offices. Prices are $100,000-220,000 for the field data packages, $70,000 for the South Kamyn prospect, and $80,000 for the Aiyaun-Tailakova prospect packages.

TOMSK EXTENSION

Tomsk's extension of the deadline for its bidding round is the second since oblast officials and the Tomskneftegasgeologia production association last May announced a competitive tender for rights to explore for and develop oil and gas in a 70,000 sq km area encompassing Parabeiski and Pudinski megaswells (OGJ, May 18, 1992, p. 34).

Officials early this year extended the bidding deadline to Mar. 30 to allow potential bidders more time to complete technical evaluations of twenty 2,000-6,000 sq km tracts included in the offering (OGJ, Jan. 11, p. 20).

The more recent delay was granted at the request of companies unwilling to submit bids until the government reaches a final decision on tax preferences for proposed projects.

GHK'S SAMARA PROJECT

GHK's first shipment of oil field equipment for its workover program in Samara consists mainly of tubular goods purchased from Vinson Supply Co.'s international oil country pipe division and electric submersible pumps.

The contract for the program in the North Caspian basin was negotiated with the assistance of LogoVAZ, the trading company affiliate of the VAZ Automobile Group, Togliatti, Russia.

GHK and Kuibyshevneft also signed a letter of intent to jointly develop about 50 million bbl of discovered but nonproducing oil reserves.

Copyright 1993 Oil & Gas Journal. All Rights Reserved.