ITERA and Zarubezhneft signed Joint Operation Agreement to develop block 21 in the Turkmen sector of the Caspian Sea

abarrelfullabarrelfull wrote on 15 Aug 2011 05:33
Tags: itera turkmenistan upstream zarubezhneft

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V.P. Makeev, Chairman of the Management Board of ITERA Oil and Gas Company, LLC, and N.G. Brunich, General Director of OJSC Zarubezhneft signed a Joint Operation Agreement under the Production Sharing Agreement (the “PSA”) in respect of Block 21 in the Turkmen sector of the Caspian Sea on August 10, 2011.

As it was reported earlier, ITERA entered into the Product Sharing Agreement (PSA) with the Government Agency on Control and Usage of Hydrocarbon Resources under the President of Turkmenistan in respect of Block 21 of the Turkmen sector of the Caspian Sea on September 13, 2009.

The Agreement entered into by ITERA Oil and Gas Company, LLC and OJSC Zarubezhneft identifies the interfacing procedures which the parties shall follow in the course of performance of their obligations under the Production Sharing Agreement within joint implementation of the Project including exploration, development, construction and operation of the discovered hydrocarbon fields in the offshore block 21. According to the document, OJSC Zarubezhneft will act as the Project operator and will be authorized to perform all oil operations under the Production Sharing Agreement on behalf of contracting companies.

The parties also signed an agreement establishing the procedure and terms of transfer of 51 percent participation interest in the Project to OJSC Zarubezhneft. 49 percent will be held by ITERA Oil and Gas Company, LLC.
For information: According to preliminary assessment, license block 21 recoverable reserves of oil are 219 million tons, that of associated gas are 92 billion cu m, and that of natural gas 100 billion cu m. Investments into the Project may amount up to US$ 6 billion.

ITERA Oil and Gas Company is one of the larger independent producers and sellers of natural gas in the Russian Federation. It has been developing its own production of natural gas in the Yamalo-Nenets Autonomous District since 1998. The Company has invested over US$ 2 billion in development of the gas production industry. ITERA was the first private company to commission gas fields in the North of Russia. The total of over 245 billion cu m of natural gas has been produced in the fields developed by ITERA.

OJSC Zarubezhneft is the oldest 100% state-owned company of the Russian oil and gas industry. Since 1967, the company has been engaged in development and implementation of projects of comprehensive geologic exploration and development of oil and gas onshore and offshore fields abroad, construction of oil infrastructure projects, enhancement of oil recovery, and deliveries of equipment and materials for oil and gas facilities in various regions of the world.

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