Galata close to storage switch

Melrose Resources expects to start operations this summer at its Galata gas storage project in the Black Sea.

Offshore staff

EDINBURGH --Melrose Resources expects to start operations this summer at its Galata gas storage project in the Black Sea.

Gas production at the Galata platform in the Bulgarian sector ended in January, in order to prepare the field for its new storage role. Melrose says the project is progressing well, with modification to piping and gas filtering facilities completed.

Gas injection will start immediately after the company has finalized commercial arrangements with Bulgaria's government.

Nearby, Melrose has issued a declaration of commerciality for the offshore Kavarna gas field, currently with the government for review. The company also expects to spud an appraisal well on its Kaliakra gas discovery later this year.

In March, Melrose entered a farm-in agreement with Sterling Resources to acquire interests in two blocks in the Romanian offshore sector to the north, Midia XV and Pelican XIII.

The transaction is moving ahead and should go through early this summer, subject to Romanian government and bank approvals. Under the agreement, Melrose would operate field developments in the blocks.

05/19/2009

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