PetroVietnam announces tender to drill first exploratory well in Uzbekistan's Ustyurt region
TASHKENT. Jan 17 (Interfax) - PetroVietnam Exploration & Production (PVEP) has announced a tender for drilling the first exploratory well at the Kossor investment block in Uzbekistan's Ustyurt region, local media reported.
The terms of the tender stipulate that the winner must carry out turnkey drilling work on the first exploratory well in the contours of the Paleozoic layers at the licensed area. The company must have experience in executing at least three similar contracts at a minimum cost of $10 million.
Tender proposals are being accepted until February 20, and the results of the contest are planned to be drawn up in March.
In 2010, Uzbek oil and gas holding Uzbekneftegaz and PVEP signed an agreement to conduct geological exploration work at the Kossor investment block in the Ustyurt region of Uzbekistan. The document envisages that PVEP will invest $29.4 million in geological exploration at the block under conditions of risk over the course of five years. Under the minimum geological exploration program, PVEP is to invest no less than $13 million during the first three years. If the minimum program is not fully executed for the first three years, the foreign investor must pay Uzbekneftegaz the value of the unfulfilled work. In such a case, Uzbekneftegaz has the right to terminate the agreement with PVEP.
PVER created Kossor Operating Company to implement the project in Uzbekistan.
If the foreign investor discovers a commercial oil and gas field, the two sides will conclude a production sharing agreement (PSA).
Uzbekneftegaz said that so far, the operator has finished seismic exploration and performed data processing and interpretation of the data, as a result of which it will determine several potential structures.
Also in 2010, PVEP and Uzbekneftegaz signed a memorandum stipulating that the Vietnamese company study the possibility of geological exploration for oil and gas in Uzbekistan's Bukhara-Khiva region. The document envisages that Vietnamese specialists will examine geological and geophysical information on the previously unstudied stratigraphic formation of Paleozoic layers within the Bukhara-Khiva region with the goal of developing the proposed program.
There are currently 44 investment blocks in Uzbekistan allocated for foreign investors to carry out geological exploration work. Foreign companies hold licenses for 21 of those blocks.
Uzbekistan also has 202 hydrocarbon fields. Over 50% of them are under development, and 35% are being prepared for development. The rest of the fields remain in the stages of exploration.
Uzbekneftegaz is the monopoly operator of Uzbekistan's oil and gas complex. It was established in 1998 and manages six joint-stock companies.