CANADIAN, U.S. FIRMS FORM SOVIET VENTURES

More western companies are increasing their involvement in the Soviet petroleum industry. Among recent developments: PanCanadian Petroleum Ltd., Calgary, unveiled a new joint venture with Canadian Fracmaster Ltd., also of Calgary, which already has production operations under way in Siberia. Fairfield Industries Inc., Houston, is preparing to register its second joint venture in Yakutsk autonomous republic. The new Samotlor PanCanadian Fracmaster Services venture involves 25% participation by

July 29, 1991

2 min read

More western companies are increasing their involvement in the Soviet petroleum industry.

Among recent developments:

PanCanadian Petroleum Ltd., Calgary, unveiled a new joint venture with Canadian Fracmaster Ltd., also of Calgary, which already has production operations under way in Siberia.
Fairfield Industries Inc., Houston, is preparing to register its second joint venture in Yakutsk autonomous republic.

PANCANADIAN FRACMASTER

The new Samotlor PanCanadian Fracmaster Services venture involves 25% participation by each of the Canadian companies and 50% by the Soviets' Samotlorneft Oil and Gas Production Division.

The project in the Tyumen region of western Siberia will call for a total $25 million investment by PanCanadian and Fracmaster in an initial 1 year production enhancement program.

The joint venture agreement also calls for as much as $150 million in development work, with spending to be based on annual evaluations. The joint venture has a target of 35,000 b/d production within 5 years. Operations are to start before yearend. Canadian Fracmaster is manufacturing equipment for the new joint venture in Nizhnevartovsk, Siberia.

FAIRFIELD VENTURE

Fairfield and Yakutskgeophysika agreed to form the Safairg joint venture to offer geophysical data and services in Yakutsk.

Fairfield expects Valery A. Martynov and Vladimir D. Matveev, president and chief geologist of Yakutskgeophysika, respectively, in Houston in mid-August for a series of private meetings with major oil companies.

The meetings are the second stage of a process that began last fall in Houston and London, when Fairfield and Lenaneftegasgeologia introduced a package of geophysical data describing the first of 17 areas in Yakutsk that are to be offered to western partners for joint venture development. Martynov and Matveev will have with them data from the northern part of Yakut, particularly from the Lena River Delta region.

Fairfield's Eric Taubin said Conoco, Exxon, Amoco, Mobil, and Texaco are among companies with meetings scheduled.

Fairfield and Sakhalingeology earlier disclosed formation of a joint venture called Geoid to offer seismic data and services in the Soviet Far East (OGJ, June 3, p. 36).

Safairg and Geoid joint ventures will offer similar data about similar oil and gas prospects.