Oil Gas NEWS   2003-08


Turkey is taking a close look at gas export from Turkmenistan
Turkey's Thrace basin gas to flow in 2009 Turkey ExxonMobil, TPAO JV Black Sea Exploration
Tethys Petroleum's Well AKK14 Tests  13 MMcf/d; 4/2/2008 Shah Deniz Gas Going to Turkey     
Turkey Otto Hits Pay Dirt at Arpaci-2;   5/15/2008
Turkey: Gas; Kuze Arpaci-1- Edirne, 6/4/2008

http://www.trains of turkey.com/ Rail Map of Turkey and Surrounding Areas

Turkey Gas Field

Turkey is taking a close look at gas export from Turkmenistan
5 March 2015 - 3:45pm 
Victoria Panfilova, an observer of Nezavisimaya Gazeta. Exclusively for Vestnik Kavkaza

A short-term visit by the President of Turkmenistan to Turkey has been completed.
Gurbanguly Berdimuhamedov discussed cooperation with Turkish leaders in the energy sector, in particular, about Turkmen gas supplies to Europe through the territory of Azerbaijan and Turkey.

According to experts, Ankara is creating a new energy alliance - Turkey-Turkmenistan-Azerbaijan.
This is a return visit by the Turkmen President to Ankara.

Turkmenistan became the first country in Central Asia for Recep Tayyip Erdogan to visit as head of state.

Ashgabat-Ankara cooperation was born immediately after Turkmenistan gaining independence, and today the country has more than 600 Turkish companies - in energy, construction, telecommunications, the textile industry and agriculture. And the number of these companies will grow.
This assumption was made by the participants of the International Investment Forum, which took place yesterday in Istanbul.

However, the direction of energy cooperation is considered the most promising.
The first agreement to import 30 billion cubic meters of Turkmen gas to Ankara was signed in 1997.
It was planned that the Turkmen gas would go to Europe.

However, the contract is not being implemented due to the uncertain status of the Caspian Sea, not allowing the opportunity to implement large projects.  Today the situation around the Caspian Sea has not changed, but Ankara has decided to revive the project.   The European Union is also very interested in it, which is lobbying for the construction of the Trans-Caspian pipeline to reduce energy dependence on Russia.

Ankara declares its readiness to contribute to solving the issue of transit of Caspian energy to Europe through its territory.
Ashgabat, in its turn, is also interested in exporting its natural gas to the European market.

Especially as Russia has previously purchased more than 40 billion cubic meters of gas per year, declined the volumes of gas up to 9 billion cubic meters in 2009, and stopped at buying only 4 billion cubic meters per year in 2015.
As a result, Ashgabat has a gas surplus.

The TANAP project, being part of the Southern Gas Corridor, envisages the transportation of gas via Turkey to Europe. It is necessary to build additional compressor units to complement the pipeline with Turkmen gas.
Participation of the Turkmen side in this project, according to experts, can give impetus to the formation of an Ankara-Baku-Ashgabat energy alliance, and Turkmenistan has been pumping its oil to the West through the Baku-Tbilisi-Ceyhan pipeline since 2010.

A political scientist, the director of the Alternativa Center for Actual Studies, Andrei Chebotarev, believes that Turkmenistan is interested in joining the TANAP project. "Iran, China and Russia are actual buyers of Turkmen gas.
In recent years, the volume of its exports to Russia is reducing, but this is due to not only economic, but also certain political factors.

Turkmen leadership has repeatedly stated the need to diversify the supply of domestic energy resources, for which they should find new routes, including in the European direction. This is particularly relevant, because Berdimuhamedov instructed to bring the volume of production and export of natural gas to a level not less than 83.8 and 48 billion cubic meters respectively. And gas production to increase to 187.7 billion cubic meters by 2020," Chebotarev said.

However, despite the willingness to cooperate, there are circumstances which can impede the participation of Turkmenistan in the TANAP project.

Turkmenistan has no direct pipeline connections with Azerbaijan, and Turkmen gas needs to be supplied to Baku in liquid form by tankers to resolve the status of the Caspian Sea and the construction of the Trans-Caspian pipeline, which will significantly increase its production costs, since the transport of liquefied natural gas is a technologically difficult and expensive process.
 In this regard, there are certain doubts about its demand for European consumers.

But it seems to Ankara, increasing its geopolitical functionality, that the problems of Ashgabat don't seem serious, and it is ready to play a significant role in their resolution.

In any case, Recep Tayyip Erdogan's statement about the meeting of the leaders of Azerbaijan, Turkmenistan and Turkey in the near future in Ashgabat, was made in this context.

Turkey ExxonMobil, TPAO JV Deepwater Black Sea Exploration
ExxonMobil Corp. 11/19/2008

ExxonMobil announced that its affiliate, ExxonMobil Exploration and Production Turkey B.V., has signed an agreement with Turkish national oil company, Turkiye Petrolleri Anonim Ortaklygy (TPAO), to explore in two large deepwater blocks offshore Turkey, marking ExxonMobil's entry into Black Sea exploration.

ExxonMobil will become operator during the initial exploration phase and earn a 50 percent interest in the Samsun Block, which measures approximately 2 million acres (8,500 square kilometers) and the eastern portion of 3921 Block, which measures approximately 5 million acres (21,000 square kilometers). Water depths reach an approximate 6,500 feet (2,000 meters).

TPAO and ExxonMobil intend to collaborate to merge skills and operational abilities during the development and production phases. Seismic acquisition and evaluation programs for the two blocks are currently being operated by TPAO and are scheduled for completion in 2009. Assignment of the interest to ExxonMobil by TPAO is subject to Turkish government approval.

"ExxonMobil is pleased to team up with TPAO to explore the hydrocarbon potential of these deepwater Black Sea blocks," said Tim Cejka, president of ExxonMobil Exploration Company. "We look forward to bringing our global deepwater experience to this prospective unexplored area."

Mehmet Uysal, president and CEO of TPAO, said, "Together, TPAO and ExxonMobil have all the tools required to fully evaluate the potential of these blocks and safely develop whatever commercial quantities of oil and gas we discover. We look forward to working together on an aggressive exploration program to see what we can find."

ExxonMobil affiliates are currently exploring for hydrocarbons in deepwater locations around the world, including offshore Angola, Brazil, Canada, Greenland, Ireland, Indonesia, Libya, Madagascar, Nigeria, The Philippines and the United States.

ExxonMobil affiliates or predecessor companies have been operating in Turkey for more than 100 years. Today, ExxonMobil's presence in Turkey includes a lubes blending plant in Istanbul as well as finished lubricants, aviation fuels and marine fuels sales in important markets throughout the country.

Turkey's Thrace basin gas to flow in 2009
By OGJ editors HOUSTON, Aug. 13
A group led by Incremental Petroleum Ltd., Perth, plans to start gas production in mid-2009 from the Edirne license in the Thrace basin northwest of Istanbul.

Turkish authorities granted the group a wholesale license that allows gas sales to the national grid, and the group awarded contracts for the design and engineering of a gas processing plant and pipeline.

Uhde Shedden of Australia won the gas plant contract, and Boral of Turkey will design and route the pipeline. Uhde designed the plant for Zorlu, formerly Amity, field 70 km from Edirne.

The joint venture of Incremental, operator with 55% interest, Otto Energy Ltd., Perth, 35%, and Petrako Energy 10%, has made six new field gas discoveries on the license since 2004.

The joint venture will be Turkey's first to produce and sell onshore gas into the Botas gas distribution network. It will be able to sell gas anywhere in the country at the best price it can negotiate. The current Botas price is about $14.70/Mcf.

Incremental is also involved in an oil and gas exploration project on 30,000 acres in the Tuz Golu basin south of Ankara.

Turkey: Otto Flows Gas; Kuze Arpaci-1- Edirne,
Otto Energy 6/4/2008
Otto Flows Gas from Second Well - Kuzey Arpaci-1 Edirne, Western Turkey
Joint venture partners Otto Energy and Incremental Petroleum announced that the Kuzey Arpaci-1 well has tested at excellent flow rates from a tested section of only 5m in the lower reservoir.

# Kuzey Arpaci-1 flowed dry gas at a rate of 1.15 MMscf/d over the interval 462.8m to 467.5m at a stabilized rate of 1.15 MMscfg/d through a 1/2 inch choke.
# Another, shallower reservoir section is also present in this well and will be available for future production.
# This is the second confirmed commercial flow rate from the Edirne discovery wells.

Following the shut in period additional perforations will be added and the well will be flowed again and prepared as a future production well.  The rig will then move to test the Arpaci 1 well, which was drilled in January 2006, before the 3D seismic was available.
Partners in the Edirne Gas project are Otto Energy with 35% and Joint Operators Incremental Petroleum (55%) and Petraco Energy (10%).
Turkey Otto Hits Pay Dirt at Arpaci-2
Otto Energy 5/15/2008

Joint venture partners Otto Energy Limited and Incremental Petroleum have announced that their fourth well in their current drilling program has encountered gas in the uppermost primary objective of the well.

The Arpaci-2 well encountered gas while drilling into the uppermost of the reservoir targets around 169 meters. Due to the high pressures and substantial mud losses in the wellbore, the well has been plugged back and will be redrilled with an amended casing and drilling mud program to accommodate the high gas pressures. While the new well cellar is being prepared, the rig will now commence an extensive testing program of earlier gas discoveries before returning to redrill Arpaci-2 in a few weeks time.

The partners in the Erdine Gas project are Otto Energy with 35%, Incremental Petroleum with 55%, and Turkish partner and Joint Operator Petraco with the remaining 10%.

"It is pleasing that we are continuing our string of successful gas discoveries in Turkey," Otto CEO Alex Parks said. "Due to the Joint Venture's priority commitment to safety, the decision was made to plug and cement the current wellbore and to redrill with an amended casing program to counter the high pressures encountered in this shallow gas reservoir."

"These small gas fields are relatively close together and can be developed through a central development hub. We look forward to commercializing these discoveries as soon as possible."

Tethys Petroleum's Exploration Well AKK14 Tests Over 13 MMcf/d
Tethys Petroleum 4/2/2008
Tethys Petroleum Ltd AKK14  two intervals 13.3 MMcfpd highest rate
The AKK14 well was drilled in the central part of the Akkulka Block on a separate prospect between the AKK13 and AKK04 discoveries and targeted both the Kyzyloi Sand interval (the productive reservoir in Tethys' nearby Kyzyloi Field) and the deeper Tasaran Sand interval. To date the Tasaran has not been deemed to be productive in the area and most of the older shallow gas wells have not targeted this interval. However analysis of the seismic data acquired by Tethys last year over the area and subsequent processing to highlight possible gas bearing zones, led Tethys to drill the AKK14 well not only to explore this new Kyzyloi structure but also the Tasaran as a secondary target a this location.

The well reached a total depth of 2,152 feet having encountered the top of the Tasaran Sand at 1,985 feet and the Kyzyloi Sand at 1,608 feet. Evaluation of the wireline log data indicated that gas was present in both zones and as such two separate production tests were carried out on the well.

The Tasaran Sand interval flowed gas at a stabilised rate of 7.5 MMcf/d (212 Mcm/d) with a flowing tubing head pressure (FTHP) of 163 psig (11.1 atm) on a 76/64ths inch (30 mm) choke. The Kyzyloi Sand interval flowed gas at a stabilised rate of 5.8 MMcf/d (164 Mcm/d) with an FTHP of 152 psig (10.4 atm) on a 76/64ths inch choke. Further work will be required to ascertain the extent of the deposit.

This is the first commercial discovery of gas made in the Tasaran Sand in the area and opens up a new play over the Company's Akkulka and Kul-Bas Blocks. The Tasaran is made up of several units of thick (up to 20 feet), blocky, medium grained sandstones and are more conventional reservoirs than the generally thinner and finer grained overlying Kyzyloi sandstone unit. In the light of the Tasaran test Tethys is re-examining existing seismic and in conjunction with revised petrophysics has outlined several potential untested Tasaran zones in older wells, as well as new leads, which will form part of the focus for further exploration for this play within Akkulka and Kul-Bas areas later in the year.

"This is a exciting discovery - our most successful well to date! Not only have we continued to discover gas in our primary Kyzyloi target, we have now opened up gas potential in a whole new reservoir with considerable upside," Dr David Robson, chairman, president and CEO. "The decision to acquire more seismic over the Akkulka and Kul-Bas areas has resulted in a more comprehensive set of data, the results of which we are now seeing through the drill-bit and this discovery opens up a new high potential play in our acreage. Recent announcements by GazProm that they will pay European prices for Central Asian gas means higher prices in the region in 2009, which should directly benefit us when our phase two development comes on production in Q4 2008, and with further development of new discoveries such as the new Tasaran gas play."
Shah Deniz Gas Going to Turkey
Statoil 7/5/2007
Gas from the Shah Deniz field in Azerbaijan is now flowing to Turkey for the first time.
"This is a milestone for Statoil's international production, sale and marketing of gas from Azerbaijan," says Jan Heiberg, vice president for the group's gas operations in Azerbaijan.  "It is also a special day for Statoil as AGSC's operator in that all buyers of Shah Deniz gas are now taking gas," he says.

BP operates the Shah Deniz field in the Azerbaijani sector of the Caspian Sea where Statoil has a 25.5% interest. Statoil is responsible for sale of phase one Shah Deniz gas, as operator for the AGSC.
Azerbaijan and Georgia already receive gas from the field, while the bulk of Shah Deniz gas is sold to Turkey.

Volumes are transported through the new South Caucasus Pipeline (SCP). The gas pipeline is 690 kilometers long and follows the same route as the Baku Tbilisi Ceyhan (BTC) oil pipeline as far as the border between Georgia and Turkey. First transport through the SCP began in the autumn of 2006.

The Turkish company Botas, buyer of the gas in Turkey, takes over transport responsibility at the Turkish border. A new pipeline has been constructed as far as the city of Erzurum, linking in with the existing Turkish gas grid.

Shah Deniz is a large gas and condensate field in an international perspective. According to the operator, phase one at peak production will have an output of around 8.6 billion cubic meters of gas annually.

Licensees in the Shah Deniz Exploration, Development and Production Sharing Agreement (EDPSA) are operator BP with a 25.5% interest, Statoil (25.5%), the State Oil Company of the Azerbaijan Republic, Socar (10%), LUKoil (10%), Nico (10%), Total (10%) and TPAO with 9%.

The AGSC is owned by operator Statoil with a 20.4% interest, BP (20.4%), the Ministry of Industry and Energy of the Azerbaijan Republic (20%), LUKOIL (8%), Nico (8%), Socar (8%), Total (8%) and TPAO (7.2%).

BP is technical operator of the SCP with a 25.5% interest. Other licensees are Statoil, which is commercial operator with a 25.5% interest, Azerbaijan SCP Ltd (10%), LUKIOL (10%), Nico (10%), Total (10%) and TPAO (9%). The Ministry of Industry and Energy of the Azerbaijan Republic is a non-funding shareholder.

Statoil also has an 8.56% interest in the Azeri Chirag Gunashli (ACG) oil field in Azerbaijan, in which Chirag was brought on stream early in 1997. In total the field produces nearly 700,000 barrels per day.