ITERA obtained licenses on block 21 in the Turkmen sector of the Caspian Sea

Апреля 23, 2010

ITERA, a Russian independent gas producer, has obtained an operator’s license and a geological exploration license for hydrocarbons block 21 in the Turkmen sector of the Caspian Sea, - Gennadi Skidanov, First Deputy Chairman of the Company Management Board.

"Two licenses have been obtained: the first one was for geological exploration and the second one was an operator’s license. ITERA Oil and Gas Company owned the licenses, – he said.
G. Skidanov pointed out that ITERA was expecting receiving permission by the Turkmen party for the second Russian company, Zarubezhneft (Overseas Oil), a state company, to join the Project.
"The decision (regarding Zarubezhneft) is to be taken by the Turkmen party. The necessary documents have been delivered. We are waiting for results, – he said. Skidanov did not specify the timeframe for a possible decision. ITERA and Zarubezhneft signed a cooperation agreement in relation to development and production of hydrocarbons at block 21 in the Turkmen sector of the Caspian Sea last November. According to that agreement, Zarubezhneft shall have a 51 percent-stake, and ITERA a 49 percent-stake with the Project.
When addressing a forum last Tuesday in Moscow, Skidanov said that according to interim assessment block 21 had over 200 million tons of producible oil, 100 billion cu m of associated gas, while the resources of non-associated gas might account for about 100 additional billion cu m.
The plan includes drilling three 7 kilometers-deep exploratory wells. Drilling at such a depth shall be accomplished for the first time in the Turkmen sector of the Caspian Sea, – Skidanov pointed out. Investment in the Project within ten years is going to exceed US$ 5 billion.
Moreover, ITERA as a member of Zarit consortium retains interest to development of three more blocks in the Turkmen shelf.
According to Skidanov, the Company is going to commence work on blocks 29, 30 and 31 jointly with Zarubezhneft and Rosneft, its partners, after all issues of the Caspian Sea legal status have been settled. "An aggregate volume of producible oil at the united block may exceed 300 million tons, and that of affiliated gas be over 100 billion cu meters", - he pointed out. Those three blocks are to be developed based on Product Sharing Agreement.