PLANS PROGRESSING FOR VENTURES IN U.S.S.R.

Plans are advancing for more non-Soviet participation in Soviet petroleum operations.

Here are the latest developments:

• American and Russian partners agreed in principle to expand the Tatex joint venture in Tataria.

• Amoco Eurasia Petroleum Co. lined up five western companies to help in evaluation and development of Azeri oil field in the Caspian Sea off Azerbaijan.

• The Norwegian engineering company Kvaerner AS formed a joint venture with Arcticmorneftegazravedka (Arctic) that will specialize in engineering and conversion of drilling rigs.

TATEX VENTURE

Subject to contingencies, Texneft Inc., an 80% owned subsidiary of Global Natural Resources Inc., Houston; and Tatneft, an oil and gas association based in Almetyevsk, Republic of Russia, expect next year to begin:

• Stimulating selected wells among 12,000 in the northwest part of Romashkino field and adjacent fields to the north and west.

• Drilling and development operations in Onbysk field, where reserves are estimated at more than 60 million bbl.

• Restoring surface facilities on 143 wells producing 3,770 b/d of oil in Romashkino areas controlled by Almetyevsk.

Following repair of equipment on Almetyevsk wells, Tatneft and Texneft will start developing other reserves underlying the city and in other urbanized Romashkino areas.

Tatex expects to earn undetermined interests in production from the proposed projects. The projects hinge on government approvals, preparation of financial and operating feasibility plans, and satisfactory arrangements with the city of Almetyevsk, third party U.S. oil field service companies, and various Tatneft operating units in Tataria.

Meanwhile, Tatex is completing installation of eight vapor recovery units shipped last summer to Tataria (OGJ, Aug. 12, p. 31). Tatex will earn export crude in exchange for recovered vapors. A Global official said Tatex partners expect to begin generating revenues by yearend 1991.

Plans approved so far include installing 29 vapor recovery systems at tank farms and 26 on wellheads to recover gas previously flared. Tatex was registered in November 1990 to recover sour gas from wellhead separators and tank vapors previously lost through emissions.

Tatneft and Texneft each own a 50% interest in Tatex. In addition to Global's 80% interest in Texneft, two private investors each own 10%.

To help finance its non-U.S. operations, Global late last month disclosed plans to sell 43% of its U.S. reserves, about 1.4 million bbl of oil and 39.5 bcf of gas. Global earlier this year raised $13 million by selling nonstrategic leases with proved reserves of 1.8 million bbl of oil and 7.2 bcf of gas, or about 17% of its U.S. reserves as of Jan. 1, 1991.

Global Chairman James G. Niven said selling more U.S. properties is part of the company's long term plan to emphasis non-U.S. operations, particularly in the U.S.S.R. and Argentina.

AZERI DEVELOPMENT

Under an agreement disclosed late last month, Unocal International Corp., McDermott International Inc., and a combine of BP Exploration Operating Co. Ltd., Den norske stats oljeselskap AS, and Ramco Oil Services plc will have participating interests in Amoco's Azeri field development project.

Breakout of interests among non-Soviet entities is Amoco 45%, Unocal 25%, the BP-Statoil-Ramco group 20%, and McDermott 10%. Kaspmorneftegas, the offshore production association in Azerbaijan, also will participate in the project.

Amoco Eurasia, a subsidiary of Amoco Production Co., last June received a notice it had been chosen as a result of a bid competition to work with Kaspmorneftegas to conduct a detailed feasibility study, negotiate and conclude required agreements, and operate the Azeri project (OGJ, July 1, p. 26). The competition was held jointly by Azerbaijan and the U.S.S.R. Oil and Gas Ministry.

Amoco has begun efforts with Kaspmorneftegas to complete a detailed feasibility study for development of the oil field and to complete the required agreements.

Amoco named a McDermott subsidiary, Hudson Engineering Corp., prime contractor for design, procurement, fabrication, and installation of Azeri field facilities.

The McDermott companies will work with Association Shelfprojectstroy of the Azerbaijan Republic, the leading offshore marine fabricator in the U.S.S.R.

KVAERNER VENTURE

Kvaerner's new venture, Kvaerner Arctic Offshore (KAO), will have a Norwegian and Russian staff based at Kvaerner's head office in Oslo.

KAO operations will include making improvements to jack ups and semisubmersibles owned or operated by Arctic. KAO also will provide support for converting and upgrading these units so they could be marketed worldwide.

With headquarters in Murmansk, Arctic has 5,000 employees. It was established 10 years ago to undertake drilling and support operations in the Barents Sea. It operates a fleet of two drillships, five rigs, and 30 support vessels.

Establishment of KAO could provide opportunities for conversion of rigs at Kvaerner yards in Finland and Norway.

Kvaerner said the collaboration agreement brings the company into closer contact with offshore operations in northern Russia, where a number of projects are under way.

Arctic was involved in discovery of giant Shtokmanovskoye gas field in the Barents Sea, where Conoco Inc., Norsk Hydro AS and a group of Finnish companies are negotiating a joint venture to develop the field.

KAO will collaborate closely with the recently established Russian state oil and gas company, which is being set up as a successor to the Soviet Ministry of Oil and Gas. Approval for the new venture came from the new deputy oil and gas minister, Boris Nikitin.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.