Vietnamese company announces tender to explore Uzbekistan well

Oil&Gas Materials 17 January 2012 13:07 (UTC +04:00)

Uzbekistan, Tashkent, Jan.17 / Trend, D. Azizov /

The Vietnamese PetroVietnam Exploration & Production (PVEP) has announced a tender to drill the first exploratory well in the Kossor Investment Block in Uzbekistan's Ustyurt region, the Kossor Operating Company - operator of the project in Uzbekistan said.

Under the tender terms, the project winner must conduct turnkey drilling operations on the first exploratory well in the contours of Paleozoic sediments in a licensed area.

The company must have experience in having previously fulfilled at least three similar contracts at a minimum cost of $10 million. Tender proposals are accepted until Feb.20. The tender results will be summed up in March.

The Uzbekneftegaz National Holding Company (NHC) and PVEP signed an agreement on geological prospecting work at the Kossor Investment Block in 2010.

According to the agreement, the Vietnamese company should invest $29.4 million in exploration work on the Kossor investment block for five years and spend no less than $13 million on the minimum exploration programme during the first three years. PVER established the Kossor Operating Company to implement the project in Uzbekistan

The Kossor Operating Company did all the prospecting work, processed and interpreted data resulting in a number of potential structures being determined. It was agreed to accelerate further stages of work in order to start prospect drilling.

According to the agreement if a foreign investor discovers oil and gas fields, both parties will conclude a production sharing agreement.