Uzbekistan, Tashkent, May 18 / Trend D. Azizov /
British-Canadian Tethys Petroleum Ltd has signed a contract with the Uzbekneftegaz National Holding Company (NHC) to enhance oil recovery from the Chegara field in Kashkadarya region (south of Uzbekistan), the company's data, published during the International Exhibition of Oil & Gas Uzbekistan 2012, which ended yesterday in Tashkent, said.
As previously reported, in November last year, Uzbekneftegaz NHC and Tethys Petroleum signed a protocol of intentions providing for the conclusion of two new contracts to increase the flow rate at two oil fields - Chegara the West Kruk in Kashkadarya.
According to the company, the contract for the increase in flow rate at the Chegara field is similar in terms of a contract concluded by Tethys on the North Urtabulak field, which has been operating for nearly 10 years.
As previously reported, in 1999, Baker Hughes Cyprus ltd (composed of Rosehill Energy, the operator of the project) signed a contract with JSC Uzneftegazdobycha (a division of NHC Uzbekneftegaz) for a project to increase production of liquid hydrocarbons from the Northern Urtabulak field worth $ 13.8 million.
Under the project Baker Hughes Cyprus in 1999-2005 carried out drilling and geological research of a reservoir and the overhaul of the five wells. This allowed it to obtain an increase of production of liquid hydrocarbons from the field in total of up to 472,900 tons.
Under the contract, after reaching the design capacity, Baker Hughes Cyprus owned 50 per cent of the output during the first three years of production, and 20 per cent over the next five.
Tethys Petroleum acquired 20 per cent of the project to extract liquid hydrocarbons from the Northern Urtabulak field from Britain's Rosehill Energy in March 2009. The investor is to deliver modern drilling equipment, as well as continue detailed exploration and extraction of liquid hydrocarbons in other fields in the area within the project.
In October 2010, Tethys started drilling in North Urtabulak. The contractor of drilling is the Chinese company Xibu Drilling. Currently the field produces about 1500 barrels of oil per day.
The Chegara and West Kruk fields are in the same area as the North Urtabulak. Chegara complex of fields and is less developed than the North Urtabulak. According to Tethys, these fields have significant potential of additional oil production in the short term.
Earlier this year, Tethys Petroleum, and Uzbekneftegaz signed a memorandum of understanding to expand exploration in Ustyurt region in northwestern Uzbekistan.
The company plans to sign a contract for exploration in the Ustyurt region until the end of this year.
Tethys Petroleum explores and develops oil and gas in Central Asia. Kulob Petroleum (a subsidiary of Tethys) got right to operate in 56 prospective areas of Tajikistan in June 2008. There are five gas fields with reserves of 1.5 trillion cubic meters, accounting for 50 per cent of total gas reserves in the country.