Disparity exists between nations - development of the petroleum industry in former Soviet Union states - FSU/Eastern Europe - Industry Overview

World Oil, August, 1998

Exploration/development. The priority direction for Turkmenistan's oil and gas sector is exploration of prospects in the Amu Dar'ya River basin and offshore on Turkmenistan's Caspian Sea shelf.

Japan National Oil Co., Exxon, Unocal, China National Petroleum and Turkish Petroleum (TPAO) are showing interest in exploring the Amu Dar'ya River basin.

This agreement is indirectly connected with the feasibility study for the Turkmenistan-China gas pipeline construction. Exxon has been developing this project since 1995, together with Mitsubishi and Chinese National Petroleum Company (CNPC).

In the middle of June 1998, Mobil and the British-Chinese consortium Kern Energy-Texuna won the qualification stage of an international tender for the Serdar and Gaplan prospects, offshore in the Caspian Sea. Estimates of potential reserves are 2.3 billion t (16.7 billion bbl) of oil and 1.8 Tcm (63.6 Tcf) of natural gas. Petronas (Malaysia) is exploring Block N1, offshore Turkmenistan, consisting of three promising structures - Livanovo, Barinovo and Gubkino. A Dutch company, Larmag, established the joint venture Larmag-Cheleken. The new company controls three offshore deposits adjoining the coast.

Monument Oil & Gas operates onshore at Nebit Dag license. Since October 1997, it has, in cooperation with Mobil, modernized one of the largest Turkmen oil fields, Burun, where proven oil reserves amount to 50 million t (363.5 million bbl).

Production. In 1997, Turkmenistan produced 6 million t of oil (119,507 bopd), vs. 4.35 million t (88,700 bopd) in 1996. Production in 1998, including gas condensate, will increase to 7 million t (139,425 bopd). According to the government, the country managed to stabilize its oil production level during the 1996-1997 period. Turkmenistan wants to increase its annual oil production to 50 million t (995,890 bopd) by 2010.

Turkmenistan produced only 17.3 Bcm of natural gas (1.67 Bcfgd) in 1997, down by about half from the 1996 level of 35.2 Bcm (3.4 Bcfgd). Domestic consumption of gas is averaging 15 Bcm/year (1.45 Bcfgd).

UZBEKISTAN

Uzbekistan is the second leading FSU gas producer. The republic has five oil and gas districts, including the Ustyurt, Bukharo-Khivin, Southwest-Gissar, Surkhan-Dar'ya and Fergana regions. The majority of 160 discovered oil and gas fields are situated in Bukharo-Khivinsky (63%) and Fergana (19%).

The country has adopted an exploration plan for the period ending 2000, in which it will target potential reserves on the Ustyurt plateau and in the Aral Sea.

According to state firm Uzbekneftegaz, the Ustyurt region is the richest gas area. It covers 180,000 sq km (69,500 sq mi), of which 110,000 sq km (42,470 sq mi) belong to Uzbekistan. Its resource potential is not yet fully explored. About 20 oil and gas fields have been discovered, already, among them are Karandz-habas (240 million t, or 1.7 billion bbl in place) and Kalamkas (485 million t, or 3.53 billion bbl in place) oil fields.

Uzbekneftegaz has issued a tender for conducting a geological and exploration survey of six promising areas in Ustyurt. Combined, the areas cover 51,700 sq km (19,961 sq mi).