DUSHANBE, June 19, 2013, Asia-Plus — The farm-out agreement announced by Tethys Petroleum Limited (Tethys) in December 2012 with subsidiaries of Total Exploration and Production (Total) and China National Petroleum Corporation (CNPC), whereby each acquired a one third interest in Tethys’ Bokhtar Production Sharing Contract (the Bokhtar PSC) in Tajikistan, has been completed.
The Government of Tajikistan is expected to sign a production sharing agreement with France’s Total S.A. (Total) and China National Petroleum Corporation (CNPC) in Dushanbe on June 18.
The Bokhtar PSC covers an area of some 35,000 square kilometers and contains some 27.5 billion barrels oil equivalent of gross unrisked mean recoverable prospective resources (according to independent figures).
As part of the acquisition, the Tajik Government has also now added a further 1186.37 square kilometers of highly prospective acreage which was not previously included in the Bokhtar PSC, and has also extended the first relinquishment period under the PSC by five years until 2020.
The signing ceremony in Dushanbe, Tajikistan, was attended by Mr. Gul Sherali, the Minister of Energy and Industry of Tajikistan, Mr. Bo Qiliang, President of CNODC, Mr. Michael Borrell, Senior Vice President Continental Europe and Central Asia of Total and Dr. David Robson, Executive Chairman and President of Tethys Petroleum Limited.
Completion of the deal will enable the consortium to progress exploration plans within the Bokhtar PSC with further seismic acquisition and the drilling of deep exploration wells to evaluate the potential super giant deposits which are thought to be present in the area. This area is an extension of the highly prolific Amu Darya Basin, which contains some of the world”s largest gas and condensate fields.
The PSC is now held equally by the three partners who own approximately one third of the project each. An operating company, the Bokhtar Operating Company, has been established and is jointly owned by the three partners.
Tethys” subsidiary Kulob Petroleum Limited (KPL) which holds the Company”s interest in the Bokhtar PSC receives some US$63 million relating to its past costs. It also has a part carry on an US$80 million initial work program whereby KPL contributes only US$9 million towards this program. Full details of the 2013 – 2014 work program will be announced shortly.
Dr David Robson, Executive Chairman and President of Tethys, said: “We believe the Bokhtar PSC is a world class asset with enormous potential. The strengths brought to this project by our new partners, Total and CNPC, means we are in a position to rapidly explore and develop this potential using all available techniques and technologies and with the financial strength to maximize success.”
Michael Borrell, Senior Vice President, Continental Europe Central Asia, Total Exploration & Production said: “This acquisition is aligned with our bolder exploration strategy and positions Total in one of the world”s most prolific gas basins. The partnership between Total, CNPC and Tethys is particularly well equipped to conduct successful exploration and potentially develop a value-creating project.”
Tethys Petroleum Limited (Tethys), the oil and gas exploration and production company focused on Central Asia.
Total S.A. is a French multinational oil and gas company and one of the six “Supermajor” oil companies in the world. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a large-scale chemicals manufacturer. The company has its head office in the Tour Total in the La Défense district in Courbevoie, West of Paris.
China National Petroleum Corporation (CNPC) is a Chinese state-owned oil and gas corporation and the largest integrated energy company in the People”s Republic of China. It has its headquarters in Dongcheng District, Beijing. CNPC is the parent of public-listed PetroChina, a company created on November 5, 1999 as part of the restructuring of CNPC. In the restructuring, CNPC injected into PetroChina most of the assets and liabilities of CNPC relating to its exploration and production, refining and marketing, chemicals and natural gas businesses. CNPC and PetroChina develop overseas assets through a joint venture, CNPC Exploration & Development Company, which is 50% owned by PetroChina.
