Source: www.downstreamtoday.com / BBC Monitoring Middle East
Egypt, Syria and Turkey have agreed to step up the implementation of the Arab gas pipeline.
Following talks with Syrian Oil Minister Sufyan Allaw and Turkish Minister of Energy and Natural Resources Hilmi Guler, Minister of Petroleum Samih Fahmi said that the implementation of the third stage of the Arab gas pipeline has been discussed. The third stage includes extending the Arab pipeline from northern Jordan to the Syrian borders, he said. That stage is expected to conclude in the last quarter of 2007.
Fahmi said that the meeting also took up an action plan for implementing the next two stages of the pipeline, which would be extended from the Syrian town of Homs to the Syrian-Turkish borders.
He added that the three countries have agreed to establish an Egyptian-Syrian-Turkish company to implement the two stages of the project.
Source: URL: http://www.today.az
The Baku-Supsa oil pipeline will be commissioned by the end of this year.
SOCAR's President Rovnag Abdullayev told that oil export has been stopped in order to eliminate problems that occurred in the Georgian part of the pipeline. SOCAR's President also commented on Russia's suspense of gas export to Georgia and added that Azerbaijan exports 2 mm cm gas per day to Georgia.
Source: MosNews
Gazprom opened its first major natural-gas development in more than five years as the Russian monopoly seeks to compensate for declining output at its biggest fields. Gazprom and its partner NGK Itera started commercial production at the $ 500 mm Beregovoye field on the Arctic Circle in western Siberia, tapping a deposit that holds more than 319 bn cm of gas, equal to two years of Russian gas exports to Europe.
“This field contributes to Russia's energy security and helps Gazprom meet its export contracts,”' said Alexander Krasnenkov, chairman of Sibneftegaz, the Gazprom-Itera venture, at the opening ceremony.
State-run Gazprom, which supplies a quarter of Europe's gas, is relying on acquisitions to bridge the gap between declining output at existing fields and surging demand until it can start developments in increasingly harsh, remote locations. Officials including Itera Chairman Igor Makarov flew to the site by helicopter from Noviy Urengoi in the desolate Yamalo-Nenets region, where Gazprom produces most of its fuel.
Sibneftegaz has spent $ 450 mm developing the field and will invest at least $ 50 mm more to reach its target output of 12 bn cm, said company head Andrei Burbasov. The venture will pump 5 bn cm of gas at Beregovoye this year.
Gazprombank, Gazprom's banking unit, took control of the Beregovoye field from Itera last year. Itera's original plan to start extraction in 2003 was thwarted by Gazprom, which denied access to its pipeline network, citing capacity constraints.
“Gazprom's strategy is to consolidate as many valuable gas assets in Russia as possible,” said Caius Roa Rapanu, an energy analyst at UralSib Financial Corp. in Moscow. “Once they do that, various production strategies can be implemented.”
Itera, which grew into Russia's largest privately-owned gas company in the late 1990s after acquiring Gazprom assets, has steadily ceded control to the state-run gas giant. The last major project Gazprom brought into production, in late 2001, is its Zapolyarnoye field, which accounts for nearly a fifth of the company's total output.
Russia's Federal Antimonopoly Service is considering whether to fine Gazprombank for buying the stake in Sibneftegaz before requesting permission from regulators, said Alexander Pirozhenko, the regulator's spokesman.
by Jon Harding and Claudia Cattaneo 19-04-07 Source: Financial Post
Russia revived a plan to transport oil, natural gas and electricity to the United States via a tunnel under the Bering Strait from Siberia to Alaska, a colossal project that was quickly panned for its questionable economics and business logic and its impact on US energy security. The proposal, which would include a rail system ending at tiny Fort Nelson, BC, would also threaten Canada's unique energy relationship with the United States, energy experts and economists said.
"It's in the realm of George W. Bush's comment, 'Let's send someone to Mars', " said energy commentator Michael Lynch, president of Amherst, Massachusetts-based Strategic Energy & Economic Research. "It's a nice idea, but after they look at the costs and the benefits, it's going to be a long time in the future," Mr Lynch said.
Viktor Razbegin, deputy head of industrial research at the Russian Economy Ministry, told that state organizations in partnership with private companies would build and manage the energy corridor, known as TKM-World Link. The 6,000-km corridor from Siberia into the United States includes a 100- km tunnel under the Bering Strait.
It will be more than twice as long as the underwater section of the Channel Tunnel between the UK and France. The undersea tunnel would contain a high-speed railway, highway and pipelines, as well as power and fibre optic cables. According to report, proponents will meet with Canadian and US government officials for a formal presentation.
A supporter of the project is former Alaskan governor Walter Joseph Hickel, who is co-chairing a conference on the venture in Moscow. Ralph Klein, former premier of Alberta, has recently discussed energy initiatives with the Russians, according to a spokesman for the Russian embassy.
Brooke Grantham, spokesman for Canada's department of foreign affairs and international trade, said Ottawa is not aware of the project.
"We are not aware of any Canadian representatives who have been contacted,"he said, adding the idea was not mentioned as recently as late March during a Canada-Russia business summit in Ottawa.
Russian embassy spokesman Sergei Qhudiaqov confirmed the plan is being considered, but was unaware of any meetings in Canada.
Greg Stringham, vice-president of the Canadian Association of Petroleum Producers, said similar plans have been floated by the Russians in the past, but went nowhere. The first came as far back as 1905, when Tsar Nicholas II, Russia's last emperor, approved a plan for a tunnel under the Bering Strait, 38 years after his grandfather sold Alaska to the United States for $ 7.2-mm. The First World War ended the project. Mr Stringham said the latest ruminations about an oil pipeline were made as recently as six years ago.
"I know it has been extremely difficult to justify it economically in the past," he said.
Critics questioned the plan's practicality, considering that both the Alaska Highway and Mackenzie Valley natural gas pipelines from the Arctic to Alberta have struggled to get off the ground after three decades of planning, said energy economist Vince Lauerman, president of Geopolitics Central, a research firm in Calgary. Mr Lynch said another glaring weakness is that it doesn't make sense to have a connection between two Arctic regions with sparse populations and economies.
"You're sort of going from one fairly underdeveloped, underpopulated place to another that's somewhat underdeveloped and underpopulated and doing it an extremely expensive way," he said.
Judith Dwarkin, chief economist at Ross Smith Energy Group in Calgary, said the project could face significant environmental issues with burrowing under the Bering Strait. In addition, it would cross a major geological fault line.
"Given current attitudes, the US may perceive 'security' issues from relying on Russian energy supplies," she said.
Considering the project's questionable business sense, some critics wondered if Russia has ulterior motives in proposing such a grandiose plan. In Europe, there is heightened anxiety over its dependence on Russian natural gas, which many fear could be used to further the Kremlin's international political agenda.
Source: www.kommersant.com
Russian President Vladimir Putin expressed doubt at a meeting with the government about the investments of Gazprom subsidiary Gazfond. His attention had not been attracted by chance. Gazprom investments are already a source of controversy within the government.
Formally, the president was discussing the Russian Venture Co. with Minister of economic Development and Trade German Gref. Gazfond, the Gazprom nongovernmental pension fund, had unofficially declared a $ 100-mm investment in the company. That investment had piqued the president's interest.
He instructed Prime Minister Mikhail Fradkov to verify the “basis” for that investment. “Pension money should be placed conservatively,” the president commented. “I have nothing against such investments, but they should be checked.”
Gazfond was founded in 1994 by Gazprom, Gazprombank and Gazprom subsidiaries Urenoilgazprom, Yamburggazdobycha and Yugtransgaz. Almost all (90.2 %) of its pension reserves (roubles 244.9 bn as of January 1, 2007) are invested in stock. Its funds are managed by Uralsib, Troika Dialog and Renaissance Capital.
Neither Gazprom not Gazfond are state property, so the prime minister is formally unable to follow the president's instructions. The officials on the Gazprom board -- Deputy Prime Minister Dmitry Medvedev, Gref and Minister of Industry and Energy Viktor Khristenko -- would be appropriate for that task.
Fradkov, once again at least formally, stands above disagreements within the government on Gazprom policy, however. The company has recently scored a victory in setting the tax on raw material production.
UK Leader, a company linked to Gazfond has already stated that it has no intentions of investing Gazfond funds in venture projects. Gazfond functions as a business independent of the natural gas monopoly.
Gazprom's current investments will serve as fuel for arguments by the Economics and Finance Ministries about Gazprom's independence from the government in investments.
Source: MosNews
Russian government official said on April 10, that construction of the second leg of Asia-bound Pacific oil pipeline could be delayed by three-four years from its original March 2008 deadline due shortages in oil supply from underdeveloped East Siberian fields.
“Failure to meet mineral base targets may delay the construction of the second phase of the pipeline by three or four years at best,” Sergei Fedorov, head of geological and mineral resources department in the Natural Resources Ministry, told a Russian energy forum in St Petersburg.
The first $ 11-bn leg of the pipeline came on stream last April and is expected to link Taishet near the East Siberian city of Irkutsk to Skovorodino in Russia’s Far East. The second leg is to run from Skovorodino to Kozmino on Russia’s Pacific Coast. The construction of the end terminal in Kozmino Bay was expected to begin in April, and the first oil deliveries to start 11 months later.
A decision to launch the construction of the second leg, with a projected capacity of 50 mm tons (366.5 mm barrels), depends on filling the first leg, which has a projected capacity of 30 mm tons (220 mm barrels) by the second half of 2008, and on the development of East Siberia’s oil fields, Fedorov said.
Sergei Grigoryev, vice president of Russia’s state-owned pipeline monopoly Transneft, said the starting date for the construction of the second leg could not be postponed because it had never been set.
“We only spoke about building the first leg, and the decision on the second leg will depend on how well the first leg is filled up,” he said. Grigoryev added that the date would also depend on oil workers who are expected to replace West Siberian oil in the pipeline with East Siberian crude, and to increase the filling to meet the target of 30 mm tons.
Two Russian state-controlled crude producers, Rosneft and Surgutneftegaz, said in March they would provide 27 mm tpy (542,219 bpd) to the Asia-bound pipeline from 2008 as operators of two East Siberian oil fields.
Fedorov said that the Natural Resources Ministry would draft proposals to increase budget funding for geological prospecting in East Siberia by late May. He called for additional budget allocations of $ 38.5 mm annually for parametric drilling as part of geological surveying.
“A new impetus is needed to fill the pipeline,” he said.
Budget allotments for geological surveying in East Siberia were $ 77 mm in 2005-06. Total budget spending on geological prospecting in 2006 was $ 635 mm, and will be $ 730 mm in 2007.
Russia expects to take 6-6.5 % of the Asian crude market once the East Siberia-Pacific pipeline comes on stream.
Source: The Moscow Times
Gazprom aims to quadruple its market value to $ 1 tn within a decade and become the world's biggest company.
"We will reach a $ 1 tn market capitalization in a period of seven to 10 years," deputy CEO Alexander Medvedev said. "We'd like to be the most valued and most capitalized company in the world."
The goal would be more than twice today's $ 439.6 bn market value of ExxonMobil, the world's largest publicly traded company, and would exceed Russia's 2006 economic output of $ 975 bn. It would also surpass the gross domestic product of countries including the Netherlands, Australia and South Korea.
Gazprom has more than eight times ExxonMobil's total reserves and is seeking more. The company took control last year of Royal Dutch Shell's Sakhalin-II venture, which plans to start shipping liquefied natural gas in 2008.
It's also developing the Shtokman project in the Arctic, the country's largest untapped deposit of the fuel.
"I believe it's a reasonable target that we'll double our market cap" from its current $ 244 bn in five years, Medvedev said. The company's shares in London climbed 60 % last year, outpacing a 36 % increase for ExxonMobil.
"Gazprom does have the potential if the management were willing to implement reforms and cost-cutting," said Steven Dashevsky, head of research at Aton Capital.
"You can see very little of what the Gazprom management has done to make the business more valuable."
Source: Power Engineering Magazine
The first floating nuclear power plant in Russia will be commissioned in 2010, according to Deputy Prime Minister Sergei Ivanov.
"We are starting the construction of floating nuclear power plants. The first one will be commissioned by 2010 and supply electricity to all of Severodvinsk," said Ivanov.
"Construction of seven power plants of the kind for the Extreme North and the Far East is planned," Ivanov said.
A number of foreign countries have shown interest in the project, Ivanov said.
Source: Itar-Tass / BBC Monitoring
The Urengoy-Center-2 gas pipeline has burst for a second time approximately 200 meters from the repaired section of the same gas pipeline damaged in a similar accident on April 3, the regional branch of the Ministry for Emergency Situations told.
The pipeline was shut down once again, and gas has been supplied via a reserve branch. There was no fire as a result of the accident. An emergency brigade has been working on the scene. Damages caused by the accident are being evaluated.
A similar accident occurred on the same gas pipeline in Oktyabrskiy District of the Khanty-Mansi Autonomous Area on April 3. A fire that broke out after the pipeline burst was quickly extinguished.
The number of accidents at oil production centres of the Khanty-Mansi Autonomous Area rose by 17.4 % in 2005 against the previous year, with 4,200 accidents registered in 2005.
Metal corrosion accounts for almost 90 % of the accidents. Twenty-two accidents were blamed on construction defects and mechanical damage.
Five gas pipeline accidents were registered, including two in Oktyabrskiy District and three accidents in Berezovskiy District.
Source: www.kommersant.com
The Gazprom Management Committee has approved the energy strategy of the company.
The initial plans were to pick out for purchase only one of three generation companies (TGC-7, TGC-10 or TGC-11), but the latest decision was to leave all of them in the list. The analysts say should Gazprom decide to acquire TGC-7, its share on the energy market would widen to 30 %, well above the shares of HydroWGC (Hydro Wholesale Generation Co.) and Rosenergoatom.
In Gazprom, they say the business restructuring calls for setting up “a number of energy companies” and transferring energy supplies of Mezhregionenergosbyt subsidiaries. Gazpromenergo is expected to be in charge of improving reliability and fail-safety of energy supplies. At first, the energy assets will be managed directly via Gazprom, but “a generation subsidiary could be created in future.”
According to a source close to Gazprom, the energy strategy of monopoly specifies territorial and wholesale generation companies (TGCs and WGCs) that are of interest to Gazprom. In line with Kommersant forecasts, the list sets forth WGC-2, WGC-6, TGC-1, TCG-3, TGC-7, TGC-10 and TGC-11.
The initial intention was to choose between TGC-7, TGC-10 and TGC-11. However, the Management Committee preferred to drop none of the companies for the time being. Despite that TGC-7 is of interest to monopoly, the final decision will be made in view of the market opportunities, the source explained.
“If the price suits us, we will buy it. Should it prove beyond our expectations, it isn’t so precious for us, we would buy another.”
TGC-7 (6,869 MW) is one of the biggest energy companies of RAO UES of Russia in terms of capacity. The new issue of its stocks is slated for this August.
But the company that unites Samara TGC, Saratov TGC and Ulyanovsk TGC hasn’t been transferred to a single stock yet. After consolidation, the stake of RAO UES of Russia in it will widen to roughly 52 %.
Source: Asia Pulse Pte Ltd.
Construction of the China-Myanmar oil pipeline is expected to start this year. The long-awaited pipeline will provide an alternative route for China's crude imports from the Middle East and Africa.
The pipeline might ease China's worries of its over-dependence on energy transportation through the Strait of Malacca.
Earlier in April, the National Development and Reform Commission approved the Sino-Myanmar oil pipeline linking Myanmar's deep-water port of Sittwe with Kunming, capital of China's south-western Yunnan Province.
China will invest CNY 8 bn ($ 1.04 bn) to build a gas pipeline, which stretches 2,380 km, linking Myanmar with Kunming, it said. The pipeline will transport 170 bn cm of natural gas from the Middle East to southwest China in the next 30 years. Myanmar, in return, will get a loan of HKD 650 mm ($ 83 mm) from the Chinese government to tap its oil resources.
China's three state-owned oil producers have stepped up projects in Myanmar. In January, China National Petroleum Corp. (CNPC), the nation's largest oil producer, signed production sharing contracts with Myanmar's Ministry of Energy covering crude oil and natural gas exploration projects in three deep-water blocks off the western Myanmar coast.
The CNPC later launched a feasibility study with the Myanmar Oil and Gas.
Source: Xinhua News Agency
China's natural gas consumption is to reach 100 bn cm by 2010, almost double the figure for last year and well beyond domestic production, according to a new report.
China might produce 100 bn cm of natural gas by 2020, but consumption will increase by 11 % to 13 % to reach 200 bn cm by that time, and almost half would have to be imported, according to the 2007 China Energy Development Report.
The report, published by the Social Science Publishing House of China, says the national gas pipeline network will cover 270 cities and by 2050 about 65 % of cities will have access to gas supply.
Total national energy consumption in 2006 included 2.37 bn tons of coal, up 9.6 % year on year; 320 mm tons of crude oil, up 7.1 %; and 55.6 bn cm of natural gas, up 19.9 %.
The government is considering energy price reform to encourage efficient energy use by companies and the public. China reduced energy consumption per unit of gross domestic product by 1.2 % last year, well short of its 4 % target.
On April 1, Beijing raised the price of natural gas for domestic use by yuan 0.15 per cm to yuan 2.05 to encourage energy efficiency.
China Xinhua Economic News 5/22/2007
Xinjiang Oilfield, a subsidiary of China's oil and gas giant PetroChina (NYSE: PTR), has found a big gas field in Karamay of Xinjiang after PetroChina's discovery of an oilfield in north China, Shanghai Securities News reported Tuesday.
The gas field is located at the southern edge of the Junggar basin with a daily gas output of 1.47 million cubic meters. Because the total reserve of the field is estimated at nearly 30 billion cubic meters, it becomes the biggest gas well of Xinjiang Oilfield.
After the gas field is put into production, the tension of gas supply in western China will be greatly alleviated.
Statistics from Xinjiang Oilfield show that the total oil reserve in the Junggar basin amounts to 8.6 billion tons and that of natural gas, 2.1 trillion cubic meters. At present, accumulated proven oil reserve in the region accounts for less than one third of the total, and proven gas reserves are less than 100 billion cubic meters.
Insiders indicate that the Junggar basin will become the most practical strategic reserve base of China.
Source: www.presstv.ir 14-04-07 Turkmenistan exported 2.27 bn cm of gas to Iran during the first quarter of 2007, a two-fold increase over the same period in 2006.
The gas was produced in Turkmenistan's western gas fields and delivered to Iran through the Korpedze-Kordkoy pipeline.
Turkmenneft, the country's national oil company which mainly operates in the west of Turkmenistan, produced 3.3. bn cm of gas during the same period. Turkmenistan reportedly seeks to export an estimated 58 bn cm of gas to other countries as well during 2007, with Russian gas monopoly, Gazprom, as its top customer.
The country launched the $ 190 mm Korpedze-Kordkoy pipeline into Iran in December of 1997, making it the first natural gas export pipeline in Central Asia to bypass Russia.
According to the terms of the 25-year contract between the two countries, Turkmenistan will allocate 35 % (or 177-212 bn cf) of the natural gas supplied by the pipeline each year to Iran as repayment for the Islamic Republic's investment in the construction of the project.
Turkmenistan's total gas exports to Iran for 2006 exceeded 5.7 bn cm. The Central Asian nation's total gas production for 2007 will reach 80 bn cm while its total oil output is projected at 10 mm tons.
Dragon Oil 5/22/2007
Following the recent announcement that drilling of the Company's first appraisal well 28/120 had been completed on the Djeitun (LAM) West structure, Dragon Oil announces the results of initial testing of the well. The first phase of testing of reservoir zones 4, 6 and 8 has yielded an initial flow rate of 3,014 bopd. Interpretations of reservoir zones 2 and 3 have suggested that there are significant, additional hydrocarbon-bearing zones in the well; however, perforation and testing of these zones has not yet commenced. Additional test results will be announced in due course but the results confirm the earlier interpretation of the Djeitun (LAM) West structure and the potential for future drilling.
Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented: "I am pleased to announce the successful completion and testing of the Djeitun (LAM) 28/120 appraisal well. This well was drilled from the Djeitun (LAM) 28 platform in order to appraise the potential for commercial hydrocarbons in the Djeitun (LAM) West part of the Cheleken Contract Area. The results from this well are particularly encouraging because this is the first time that this structure has tested significant oil. The well also confirms significant oil potential in other reservoir zones, which will be perforated at a later date. This success gives me confidence that the Djeitun (LAM) West structure is promising and that there is sufficient data for further development in this area.
I am also very pleased that we have reached a new gross peak production well in excess of 33,000 bopd. This rewards the great efforts being put in by the Company personnel to improve production from its asset and reflects very positively on the Company's ability to meet its stated goals."
Dragon Oil plc is an independent oil and gas exploration and production company with interest in the Caspian Sea, Turkmenistan. Dragon is listed on the London Stock Exchange and the Irish Stock Exchange ('DGO.')
May, 24 SANTO DOMINGO
President Leonel Fernandez last night signed a decree that declares of national interest the use of natural gas (NG) for its social, economic and environmental importance, which will be promoted through the Dominican Government and the mayors. The Government and City councils will promote the massive use of natural gas as an alternative to liquid fuels.
Decree 264-07 disposes that the Industry and Commerce Ministry will implement the massive distribution of NG in stations, as well as to promote the establishment of others for freight and a vehicle conversion program.
It will also implement the national natural gas policy, emphasizing the guarantee of the fuel’s supply, and protect the consumers’ interests as far as price, quality and availability. It also regularizes and controls the process to convert gasoline or diesel vehicles to the new fuel.
Industry and Commerce will also implement actions to sensitize executives of the fuels distributing companies and to the final consumer on the environmental, social and economic advantages of using vehicular natural gas (VNG).
The Government is committed to provide facilities of finance for the conversion or to acquire equipment to use NG, including within the final price of the fuel and the margin required to repay the financing.
Fernandez also arranged the regulation on the use natural gas for the free zones, aimed at lowering their operational costs and increase competitiveness.
Xinhua Economic News 5/23/2007
Upon China's two oil majors, Sinopec and CNOOC, inked their first strategic agreement recently, a source from Sinopec explained to China Business News that Sinopec expects overall cooperation with CNOOC in the market of southern China.
In southern China, Sinopec holds the advantages in terms of pipeline grids and end users, but its natural gas supply has been suffering from insufficiency though Puguang gasfield was newly discovered in Sichuan province, southwest China, during last year.
CNOOC, however, has been gripping abundant gas resources by importing LNG. Its first LNG terminal came on stream in Dapeng, south China province of Guangdong and the second one will be kicked off in the southeast province of Fujian by the end of this year.
Surely, it is the complimentary advantages that bind the two suppliers together. Likely, they may establish a JV to operate the business related to natural gas supplies, reserves and construction of natural gas pipelines.
It seems that their first target is Shanghai, the biggest gas- guzzler of China. Sinopec is building a natural gas pipeline spanning from S.W. China to Shanghai and CNOOC is supplying gas produced in the East China Sea to Shanghai.
China's booming economy and demand for clean energy bode a severe competitive natural gas market. Statistics show China's natural gas demand by 2010 will surge to 100 billion cubic meters from 2005's 65 billion cubic meters and the production by then will amount to 92 billion cubic meters.
Toreador Resources Corp. 5/23/2007
Toreador Resources Corp. and its joint venture partners TPAO (the Turkish national oil company) and Stratic Energy Corp. on Wednesday announced that first gas sales from the South Akcakoca Sub-Basin project have begun. Initial production is from three wells on the Akkaya platform, the Akkaya-1a, -2 and -3 at a rate of approximately 20 million cubic feet of gas per day (MMCFD). The production rate from the three wells will be adjusted as the remaining two platforms in the first phase of production are brought online over the next few months. When all three platforms are on full production, estimated to be early in the third quarter, the projected flow rate will be approximately 50 MMCFD to the 100% interest. Toreador has 36.75% interest in the project, TPAO has 51% interest, and Stratic has 12.25% interest.
Pricing for the gas is based on the BOTAS (Turkish national pipeline company) posted guaranteed industrial tariff which in May is approximately $8.90 per thousand cubic feet of gas (MCF). After discounts, the wellhead price based on current pricing is estimated to be $8 per MCF. Pricing is adjusted monthly and will vary with the BOTAS posted price.
Dedication of the production center occurred on Sunday, May 20th, and was officiated by Turkish Energy Minister Hilmi Guler and former Foreign Minister Yasar Yakis. The production is the first ever from the Turkish Black Sea and adds significantly to Turkish domestic production of natural gas.
In other operational news, intermediate casing has been set at approximately 745 meters measured depth on the Lapos-2 exploratory well in Romania and the rig is currently drilling out of the casing shoe. Projected total depth will be between 1,500 and 2,000 meters. The primary target for the well is a series of Sarmatian-age sands which are productive in the area.
Toreador Resources Corp. is an independent international energy company engaged in the acquisition, development, exploration and production of natural gas, crude oil and other income-producing minerals. The company holds interests in developed and undeveloped oil and gas properties in France, Hungary, Romania and Turkey. In the United States, Toreador primarily owns working interests in five states.
Oil & Gas Development Co. Ltd. 5/23/2007
Oil and Gas Development Co. Ltd. (OGDCL) said that it has discovered hydrocarbons in the exploratory Thora Deep Well No. 1, which is located in the Thora and Thora East Mining Lease in the Hyderabad district of Pakistan's Sindh province. The well was drilled down to the depth of 3,906 meters.
On the basis of open-hole logs, two zones of massive sands of the Lower Goru formation were selected for testing. Tests of both zones showed the second zone as the producing zone. The short-duration initial testing results are as follows:
--Choke sizes: 32/64" --WHFP (psi): 1,880 --Quantity condensate (bpd): 100 --Quantity gas (MMSCFD): 9.90 --Quantity water (bwpd): 120 --API gravity: 44.9
OGDCL is the largest petroleum exploration and production, or E&P, company in the Pakistan oil and gas sector, with a primary focus on gas. It holds the largest portfolio of the recoverable hydrocarbon reserves of Pakistan, at 32% of gas and 37% of oil, respectively, as of June 30, 2006, and contributed 22% of the country's total natural gas production and 48% of its oil production for the year ended June 30, 2006 on a net basis.
With a portfolio of 46 exploration licenses, the company has the largest exploration acreage in Pakistan, covering 39% of the total awarded as of June 2006. While its focus to date has been on onshore exploration, the company has also recently begun conducting offshore exploration activities, an area that the company believes has significant untapped potential. OGDCL had a net profit PKR 45.8bn for the year ended June 30, 2006 and PKR 12.0bn for the three months ended September 30, 2006.
Thai Burma PTTEP
Encounters 26.68 MMSCFD Gas with Zawtika-3 & 4 PTTEP 5/23/2007
PTTEP says the appraisal well Zawtika-3, located in the south eastern of Zawtika-1A well reached a total depth of 2,274 meters and encountered eight zones of natural gas bearing formation with a total thickness of 65 meters. The flow rate testing (Tubing Stem Test-TST) was conducted on selected one zone, indicating maximum natural gas flow rates of approximately 26.68 million standard cubic feet per day (MMSCFD).
The appraisal well Zawtika-4, located in the east of Zawtika-1A well, was drilled to a total depth of 2,390 meters and encountered eleven zones of natural gas bearing formation with a total thickness of 161 meters. The flow rate testings (Tubing Stem Test-TST) were conducted on two zones, indicating maximum natural gas flow rates of approximately 39.6 MMSCFD and 31.5 MMSCFD respectively. The combined flow rate of two zones is 71.1 MMSCFD.
The successful results of the appraisal wells Zawtika-3 and Zawtika-4 affirm the commercial potential of natural gas in Zawtika area. PTTEP will prepare a development plan and continue to drill 3 appraisal wells, Kakonna-2, Zawtika-5, and Zawtika-6, within July 2007.
PTTEP is operator and sole shareholder of exploration block – M9 in Myanmar. The block is located in the Gulf of Mataban, about 300 kilometers south of Yangon.