BAKU, Azerbaijan, December 28
By Jeila Aliyeva - Trend:
The initial total resources in the Turkmen sector of the Caspian Sea are currently estimated at 12.1 billion tons of oil and gas condensate.
At the same time, the country's gas reserves in the Turkmen sector of the Caspian Sea are estimated at 6.1 trillion cubic meters.
According to experts, the total geological reserves of Turkmenistan amount to 71.2 billion tons of conventional fuel, of which 53 billion tons are resource reserves of deposits on land, and 18.2 billion tons are located within the Turkmen sector of the Caspian Sea.
In general, the Turkmen sector of the Caspian Sea is divided into 32 license blocks.
Turkmenistan annually produces about 10 million tons of oil. The extraction is provided by Turkmenneft State Concern and operating on the basis of Production sharing agreements (PSAs) companies from the UK, Malaysia, UAE, to develop the Turkmen part of the Caspian Sea, attracted by Petronas, Dragon Oil, Buried Hill, Areti and Eni.
"Block-1".
The Operator Is Petronas Charigali (Malaysia).
The PSA was signed in 1996.
The total area of the contract territory is about 1,467 square kilometers, including the Diyarbekir, Magtymguly, Ovez, Mashrykov, and Garagol-Deniz fields, which are part of the Block-1 contract territory.
The proven reserves are at least 1 trillion cubic meters of gas, more than 200 million tons of oil, and 300 million tons of gas condensate.
Petronas is negotiating with Turkmenistan to extend the current agreement until 2038. Currently, intensive oil and gas production is underway at the Magtymguly and Diyarbekir fields.
Turkmenistan signed a 32-year contract with Petronas for the production of natural gas in the coastal zone of the Caspian Sea in 1996. Thus, the contact can be extended from 2028 to 2038.
Also, Petronas, which wants to extend the contract that will expire in 3 years, offers new proposals in accordance with the law of Turkmenistan on hydrocarbon resources.
Petronas is interested in expanding this productive partnership, offering its opportunities for implementing projects in the field of petrochemicals and other areas.
"Cheleken Block"
The operator is Dragon Oil (UAE-UK).
The basic PSA with Turkmenistan was signed in 1999.
The company's shares are listed on the London and Dublin stock exchanges, the main shareholder is Emirates National Oil Company (ENOC).
The main activity of the company is in the Eastern sector of the South Caspian basin-"Cheleken" contract territory, the total area of the contract territory is about 950 square kilometers, including the fields of Jeitun, Jigalybek, and Chelekenyangummez.
Proven oil and condensate reserves in the contract area amount to 663 million barrels. Conditional reserves of oil and condensate amount to 63 million barrels. Gas reserves are 1.3 trillion cubic feet. Prospective gas resources are estimated at 1.3 trillion cubic feet.
Project status:
The Board of Directors of Dragon Oil has set a goal – to ensure a stable level of oil production in Turkmenistan at the level of 100,000 barrels per day by 2025.
Dragon Oil expressed interest in extending the production sharing agreement (PSA), which expires in 2025, and submitted a number of proposals to the Turkmen government in this regard.
In accordance with the PSA with the government of Turkmenistan, Dragon Oil Turkmenistan received a license to explore and develop oil and gas reserves in the Cheleken contract area for a period of 25 years, starting in May 2000, as well as the exclusive right to negotiate an extension of the license for an additional period.
Since the beginning of the project, dozens of wells have been put into operation, ten offshore platforms have been built, additional oil storage facilities have been built, and it has become possible to load two tankers simultaneously.
Block 3
The operator is Buried Hill (Canada).
PSA was signed in 2007.
The status of the project.
The parties drew attention to new opportunities after the signing of the convention on the legal status of the Caspian Sea in August 2018. The company's website says that Block 3 includes the Serdar oil field, which is located on the Absheron Peninsula.
"However, as the Serdar field remains the subject of a border dispute with Azerbaijan, the company is awaiting a political decision before it can proceed with full assessment and development," the company said.
Block 21
The Operator Is ARETI International Group (Russia).
The PSA was signed in 2009.
The block has two structures: West Erdekli and South Erdekli. The company reports that the studies have confirmed the high prospects of the studied structures for hydrocarbons, classifying them as unique.
Project status
Based on the results of 2D/3D seismic processing, the estimated recoverable reserves of the block are about 800 billion cubic meters of natural gas and 95.5 million tons of liquid hydrocarbons. At that time, the company estimated the total investment in the project at $6 billion. However, there is no information about the company's future activities.
ARETI also said that it does not exclude its participation in the development of blocks 21 and 22 within the framework of the Zarit joint venture, in which the Russian Rosneft Oil Company may also act as a co-founder. There have been no reports on this account yet.
The official website of ARETI says that the Corporation was created as a result of the rebranding of the international group of companies ITERA, formed in 1992.
As earlier ARETI told Trend, Participation in Oil and Gas of Turkmenistan XXV International Conference helps representatives of the ARETI International Group to gain new useful experience, as well as establish mutually beneficial contactsю
"In this regard, the oil and gas conference of Turkmenistan is a truly significant event for all participants in this market," the company said.
As a long-standing partner of Turkmenistan, the company traditionally sponsors this conference every year, the company said.
ENI
Block 19 and 20 (negotiation stage)
Italian ENI is interested in these blocks with reserves of more than 500 million tons of oil and 630 billion cubic meters of natural gas. There have been no reports of the project's progress yet.
In 2014, ENI extended the contract for the Nebit-Dag land block in Turkmenistan under the PSA for an additional ten years.
The activities of Eni, which invested about $ 2.0 billion in Turkmenistan in the period 2008-2018, include a contract area of more than a thousand square kilometers in the Balkan velayat (region) of the country.
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