Eurasia Drilling Company extends contract for drilling operations in Turkmenistan

Business Materials 19 September 2012 20:19 (UTC +04:00)

Turkmenistan, Ashgabat, Sept. 19 / Trend H. Hasanov /

Eurasia Drilling Company Limited ("EDC"), the leading onshore and offshore drilling service provider in the CIS, today announces that it has been awarded a multi-year contract extension with PETRONAS Carigali (Turkmenistan) for drilling offshore Turkmenistan in the Caspian Sea, the company said today.

Effective from January 9, 2013, our jack-up drilling rig SATURN is contracted for a three-year period.

SATURN is a Class CS MOD V (Keppel FELS B2427) class rig and was built in Baku in September 2000. The SATURN is capable of drilling in water depths of up to 107 metres, has a rated drilling depth capability of 7,986 metres and a BOP system rated to 15,000 psi.

Petronas operates in Turkmenistan on the basis of PSA contract signed in 1996. The contract area includes Diyarbakir, Magtymguly, Ovez, Mashrykov and Garagol Deniz fields. The explored reserves hit at least 1 trillion cubic meters of gas, more than 200 million tons of oil and 300 million tons of gas condensate. The contract area is about 1,467 square kilometers.

As of early 2012, Petronas's total investments exceeded $ 5.6 billion.

The commercial production and export of oil have started since May 2006. The company announced that there is a possibility of commercial production of natural
gas on the Turkmen shelf of the Caspian Sea in July 2011. A gas processing plant and a gas terminal were commissioned near the ea coast. The capacity of the first phase of the complex is 5 billion cubic meters of natural gas, project - 10 billion.

The used oil transportation route is via Azerbaijan and Iran.