OIL

OIL-IN-BRIEF

NAOC OIL CONSORTIUM FOLDS UP OPERATIONS AT AZERBAIJANI FIELDS

BAKU, April 30 (Interfax) The multinational consortium formed to develop the Ashrafi and Dan-Ulduzu fields in Azerbaijan�s sector of the Caspian Sea has officially folded up its operations.

The BP Amoco-led consortium, North Apsheron Operating Company (NAOC), failed to find commercially viable hydrocarbon deposits in the contract territory.

Consortium members have agreed to abandon the project.

Akif Narimanov, a senior geologist at Azerbaijani state oil company SOCAR, said evaluation drilling indicated 10 million tonnes of proven reserves at the fields, while forecasts made by consortium members at the time the contract was signed were �too optimistic.� Those forecasts put reserves at 100 million 120 million tonnes of oil and 30 billion 50 billion cubic meters of gas.

The Ashrafi and Dan-Ulduzu fields are just a �drop in the bucket� compared with total reserves in the southern portion of the Caspian, Narimanov said. NAOC�s disbandment �will have no influence on major oil company decisions regarding other major blocks in the Caspian,� he said.

The production-sharing contract on exploration and development of the Ashrafi and Dan-Ulduzu fields was signed on December 14, 1996. Amoco took a 30% interest, Unocal had 25.5%, Delta International of Saudi Arabia had 4.5%, Japan�s Itochu held 20% and SOCAR had 20%.

Azerbaijan has concluded 19 oil contracts involving 32 companies from 14 countries.

KAZAKHSTAN TO RECEIVE UZBEK GAS AT OLD PRICE THIS YEAR

ALMATY, April 30 (Interfax-Kazakhstan) Kazakhstan will receive Uzbek gas at the old price of $38.5 per 1,000 cubic meters through the end of the year, president of the Almatygorgaz state enterprise Sultangali Imazhanov said at a press conference Friday.

Kazakh and Uzbek officials concluded an agreement in Tashkent on April 27 concerning �uninterrupted supplies� of gas to southern Kazakhstan, Imazhanov said.

It was �an in-between� meeting, he said. Kazakh Prime Minister Nurlan Balgimbayev will pay an official visit to Uzbekistan May 25-27 for �fundamental talks� concerning Uzbek gas supplies.

Drilling work has began in Atyrau

According to �Express K�, the drilling of oil wells was recently begun at the Eastern Moldabek site of the Kenbai deposit. The Kenbai deposit was previously exploited by JSC �Munai�, but the company lost its rights after failing to fulfil its responsibilities. Following JSC Munai, the rights to the site were awarded to �Embamunaigas�. The company plans to drill 166 wells, at a depth of 450 m. Five wells will be exploited this year.