DUSHANBE, January 3, 2014, Asia-Plus — Tethys Petroleum Limited (Tethys), the oil and gas exploration and production company focused on Central Asia and the Caspian Region, announced on January 2 that it will exit Uzbekistan.
Tethys reportedly made a corporate decision to exit Uzbekistan effective immediately due to recent changes in the business climate and political environment. It is expected to take up to three months to complete the process of exiting from the existing Production Enhancement Contract (“PEC”) for the North Urtabulak field. This strategic decision will allow Tethys to refocus capital to other countries of operation, progressing both exploration and production activities.
Dr. David Robson, Executive Chairman and President of Tethys, said noted that exiting Uzbekistan would allow the company now to focus more on other valuable assets. He also noted that the company had received Georgian governmental consent for the acquisition of a 56% interest in Blocks XIA, XIM and XIN (Project “Iberia”) in eastern Georgia.
“We are extremely pleased to have received final Georgina Government’s consent for the acquisition of our interest in these world class assets with significant potential for conventional and non-conventional oil and gas production,” said Tethys top manager. “This transaction significantly strengthens Tethys” diversified portfolio adding an unconventional oil play to our production and exploration assets in Kazakhstan, and our exciting new frontier exploration acreage in Tajikistan. We now have negotiated partnerships in all three countries of focus; local partners in Georgia, a Chinese private equity fund in Kazakhstan, and CNPC and Total in Tajikistan. Through these diverse partnerships we have spread our risk and brought in significant funding to the Company, whilst maintaining a material interest in each area.”
In Tajikistan, Tethys was one of the first oil and gas companies to work in the country. Tethys also negotiated the First Production Sharing Contract (PSC) for the large Bokhtar area in the southwest region of the country.
Tethys owns 85% of Seven Stars Energy Corporation, which in turn owns 100% of Tethys Services Tajikistan, the Operating Company under the PSC, and Kulob Petroleum Limited, the Contractor under the PSC, and is currently involved in an extensive program of oil and gas field re-development, exploration drilling, and seismic acquisition/interpretation.
