23 Dec 2009 17:58

Tatneft will invest $120 mln in Libyan, Syrian projects in 2010

ALMETEVSK. Dec 23 (Interfax) - OJSC Tatneft will put $110 million into projects in Libya next year and another $10 million in Syria, company General Director Shafagat Takhautdinov said at a Wednesday press conference.

In Syria, the funds will be used for drilling work, Takhautdinov said. Loan funds raised by the operator-company for the deposit will be used for outfitting the site.

Four wells have been drilled in Syria, the well yield of one of which is 150 tonnes per day. The Syrian authorities have confirmed the industrial opening of the oilfield, which will allow Tatneft to set up a joint venture and embark on development.

The cost of the project in Libya is estimated at an overall $250 million, and $70-$80 million has already been invested. Drilling in Libya will produce 175 tonnes of oil per day.

The costliest project outside of Tatarstan, Takhautdinov said, is the development of deposits in Samara region. Tatneft will be investing around 2 billion rubles in the region next year. Tatneft-Samara plans to extract 260,000 tonnes of oil this year, 35,000 tonnes less than last year. This drop in production was caused by a cessation of development at one of the deposits because of a large amount of associated oil gas, Takhautdinov said.

Tatneft secured approval for the industrial opening of the South Kishma deposits in Syria in November. Recoverable resources there are estimated at 4.89 million tonnes. South Kishma is the first deposit to be developed on the basis of an exploration and development product-sharing agreement for block 27, a deal inked in March of 2005. Within 30 days following the announcement of industrial opening, a joint-work company for developing the site - of which Tatneft will control 50% - will be registered.

Plans are that Tatneft will invest $26.1 million in geological exploration and oil production in Syria. In the first three years of this project, Tatneft is to invest $7 million, in the last two $6.3 million and then another $12.8 million.

Tatneft will be prospecting in Libya under a product-sharing agreement with Libya's National Oil Corp. (NOC) on four licensed sections. Recoverable resources of these four are projected at 247 million tonnes.