NEW YORK, Aug 17
(BUSINESS WIRE)
American International Petroleum Corporation (Nasdaq NMS: AIPN) today announced it has received notice that the State Committee of the Republic of Kazakhstan on Investments has approved the Operations Contract for the development of the Shagyrly-Shomyshty gas field in accordance with Government License No. 1551. A Kazakhstan government report estimates proved recoverable gas reserves at 700 BCF (billion cubic feet) for the 174,000 acre field. The gas field has a shallow Eocene pay zone at 1,300-1,500 feet with an average net pay thickness of 10-30 feet.
The Operations Contract governs all aspects of the development of the field over the 30-year License period, including the duties and obligations of both the Company and Kazakhstan government. In particular, the Contract provides the Company, which has a 100% net working interest in the License, with guarantees for the right to export the gas according to the petroleum code as well as stability of taxes and economic provisions.
The initial drilling program will begin later this year with the drilling of two test wells to reconfirm previous well production test rates that ranged between 2.0-5.5 million cubic feet per day. The engineering plans for the production facilities are being designed to handle 200 million cubic feet of gas per day.
The Company is currently holding discussions regarding contractual arrangements for the marketing and export of gas produced from the field, as well as equipment and construction financing for certain segments of the project. Detailed engineering design is scheduled to begin later this year with initial gas sales in early 2001, subject to the conclusion of project finance discussions.
American International Petroleum Corporation is a diversified petroleum company which, through various wholly owned subsidiaries, is involved in oil and gas exploration and development in Kazakhstan, and in refining, marketing and transportation of petroleum products in the United States.
MOSCOW, Aug 18
(AFP)
Russia on Wednesday accused the United States of trying to block the construction of a pipeline designed to carry gas from Russia to Turkey.
US officials “are increasingly resorting to political and other pressure to discredit and prevent the Blue Stream project being put into operation,” the Russian foreign ministry said in a statement.
”We are worried about comments that Russian deliveries of hydrocarbons to certain countries in the region could endanger their political and economic independence,” the statement added.
Moscow called on Washington to avoid using such tactics, which it said endangered “commercial freedom, commercial ethics and Russian-US relations.”
The 1,213-kilometre (750-mile) Blue Stream pipeline is due to be laid under the Black Sea, linking the southern Russian gas plant of Izobilnoy to Ankara.
It would lead to a slight increase in the amount of gas supplied by Russia to Turkey in 2000.
Under the terms of a deal signed between Turkey and Russia in 1997 sales of Russian natural gas to Turkey will increase from seven billion cubic meters a year to 30 billion by 2010.
Moscow and Washington have clashed over the construction of pipelines to transport Azerbaijani oil from the Caspian Sea. One of the two planned pipelines would pass through Russia.
All Over the Globe is published by IPA House.
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