Itera aims to bring Rosneft into offshore Caspian gas block

Itera Oil and Gas says Zarubezhneft will not participate in the block 21 development in the Turkmen sector of the Caspian Sea.

Offshore staff

MOSCOW –Itera Oil and Gas says Zarubezhneft will not participate in the block 21 development in the Turkmen sector of the Caspian Sea.

In September 2009, Itera and the Turkmen authorities executed a Production Sharing Agreement (PSA) for the development. Two months later the company declared that it would transfer a 51% share in the project to Zarubezhneft.

About two years later, a joint venture agreement was announced giving Zarubezhneft a 51% operating stake in the project with Itera holding the remaining 49%. However, this was not ratified by the Turkmen authorities.

Itera is working on the project alone, but hopes to bring in Rosneft as an alternative partner, assuming the latter is prepared to offer Itera interests in some of its Russian onshore gas assets.

Last fall, interpretation was completed of seismic data on block 21, with gas reserves upgraded to 700-800 bcm (24.72-28.25 tcf). Afirst exploratory well should be drilled later this year.

3/8/2013

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