DUSHANBE, November 2, Asia-Plus — Canada’s Tethys Petroleum Limited (Tethys) will start work on extraction of Tajik natural gas before the end of this year.
Speaking to journalists in Dushanbe on November 1, Dr David Robson, Chairman, President and Chief Executive Officer of Tethys, said Tethys is about to commence production operations in the Kulob area of the Khatlon province before the end of this year.
According to him, Tethys, through its wholly owned subsidiary, Tethys Tajikistan Limited (TTL), last week signed an agreement with Southern Oil and Gas Exploration State Unitary Enterprise (SOG) to commence activities on the Beshtenchak, Uznohor, South Pushiyon and Khoja Sartez fields before the end of this year.
Dr. Robson noted that his company had signed an Investment and Operating Agreement (IOA) with SOG relating to oil and gas fields in southern Tajikistan and the IOA had been agreed to and supported by the Tajik Ministry of Energy and Industry (MoEI). Under the terms of the IOA, Tethys Tajikistan shall begin work on the rehabilitation of the fields within the next two months and Tethys Tajikistan will provide all of the investment to increase the production of oil and gas. Any additional production shall be shared between Tethys Tajikistan and SOG. Additional gas production will be supplied to the local region.
The IOA is precursor to a Production Sharing Agreement (PSA), which is being completed and finalized between Tethys and Tajik authorities.
Dr. Robson told journalists that initially Tethys will invest $8 million in operations in the territory of Tajikistan. .
We will recall that in January 2007, Tethys signed a Protocol of Intent with the Tajik government to negotiate a PSA for the large Kulob area of south-west Tajikistan and in early March 2007, the Tajikistan government introduced production-sharing legislation for the first time which lays the fiscal and commercial framework for such a PSC. In June 2007 Tethys extended the term and scope of its Protocol and the IOA also re-enforces the Ministry’s support for the planned PSA.
The Beshtenchak field is located 45 km north of Kulob and is currently producing approximately 75 barrels of oil and limited gas production. The field was discovered in 1970 and there are currently 24 operational wells, 6 of which are currently producing at limited potential due to lack of investment and technology.
Khoja Sartez, a gas condensate accumulation located some 13 km to the west of Kulob. This deposit is developed on the flank of a clearly visible large salt dome and is at a much earlier stage of development than is Beshtenchak. Drilling has only been carried out in the surface layers to a depth of some 1,700 meters. Tethys believes that the deeper layers and other flanks of the dome have the potential to contain substantial volumes of gas condensate. Four wells have been drilled on the structure and a modern gas processing facility was installed but all the wells are currently shut-in due to lack of investment and adequate technology. The Khoja Sartez deposit seems similar to some of the large salt dome related prospects in the southern part of the Kulob area.
Tethys believes that there is an opportunity for large discoveries of both oil and gas exploration in the “virgin” territory of the Afghan-Tajik basin, a continuation of the prolific Amu Darya basin, in Tajikistan. Tethys believes that the Kulob area of southern Tajikistan offers very significant potential with existing discoveries in a proven hydrocarbon system with several different source rocks, reservoir rocks and large structures created both by tectonic activity and active salt movement.
