Uzbekistan, Tashkent, May 17 / Trend D.Azizov /
The National Holding Company (NHC) Uzbekneftegaz and British Tethys Petroleum Limited have signed a letter of intent to conduct exploration work on the Baiterek investment block in northern Ustiurt in Uzbekistan, Tethys reported in its press-release.
According to a press release, Tethys in collaboration with the Institute of Geology and Exploration of Oil and Gas fields under NHC Uzbekneftegaz has developed an exploration programme for the investment unit. The programme must be approved by the government of Uzbekistan.
Tethys and NHC Uzbekneftegaz intend to sign an agreement to conduct exploration on the Baiterek investment block in accordance with the legislation of Uzbekistan within one calendar year, the report says.
As previously reported, in November 2011, NHC Uzbekneftegaz and Tethys Petroleum signed a letter of intent providing for the conclusion of two new contracts to increase production rate at two oil fields, namely Chegara and West Kruk in the Kashkadarya region (south of Uzbekistan).
In May 2012, NHC Uzbekneftegaz and Tethys signed a contract for the project on enhanced oil recovery at the Chegara field in Kashkadarya. In April this year, Tethys started its implementation.
The project envisages undertaking a program of drilling, including with the use of horizontal penetration that covers the period untill 2020. Tethys's total investment in the project will amount to $24.4 million.
According to the Uzbek side, the design capacity of production from the field could be around 390 tons per day.
Currently, Tethys Petroleum is implementing a project to increase production of liquid hydrocarbons in the North Urtabulak field in Kashkadarya.
In 2010-2011, the company carried out drilling of horizontal wells in the field to increase production. Chinese Xibu Drilling acts as the drilling contractor. North Urtabulak currently produces about 1.5 million barrels of oil per day.
Tethys Petroleum Company is engaged in the exploration and development of oil and gas fields in Central Asia. In June 2008, Kulob Petroleum (a subsidiary of Tethys) obtained a right to work on 56 prospective areas of Tajikistan, including five gas fields with reserves of 1.5 trillion cubic meters, accounting for 50 per cent of total gas reserves in the country.