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17/06/2013 12:51
Zarina Ergasheva
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DUSHANBE, June 17, 2013, Asia-Plus -- The Government of Tajikistan is expected to sign a production sharing agreement with France’s Total S.A. (Total) and the China National petroleum Corporation (CNPC) in Dushanbe on June 18.
“After signing of the agreement, three foreign companies will be engaged in exploring and developing gas fields in southern Tajikistan,” a well-informed source in the Tajik government told Asia-Plus in an interview.
Issues related to exploration and development of gas fields located in southern Tajikistan were discussed here in April this year.
Tajik Minister of Energy and Industry Gul Sherali on April 16 met here with Philip Ergo, Vice-President of Total and senior representatives of CNPC. According to the press center of the Ministry of Energy and Industries (MoEI), the sides discussed issues related to cooperation in the oil and gas sector and opening of the companies’ offices in Tajikistan.
We will recall that the Government of Tajikistan has approved the participation of subsidiaries of Total and CNPC in the Bokhtar Production Sharing Contract.
Tethys Petroleum Limited (Tethys), the oil and gas exploration and production company focused on Central Asia, announced on December 21, 22012 that its subsidiary, Kulob Petroleum Limited, has signed a farm-out agreement (FOA) for the Bokhtar Production Sharing Contract (PSC) in Tajikistan with subsidiaries of Total and CNPC.
Terms highlights are the following: the interest in the PSC will be held equally by the three partners namely Kulob Petroleum Limited (KPL), Total E&P Tajikistan B.V. (a subsidiary of Total S.A.) and CNODC Coop UA (a subsidiary of CNODC); Tethys owns an indirect 85% controlling interest in KPL; KPL will receive 66.67% of back costs amounting to a payment of approximately USD60 million in cash upon completion. As funding for this project to date has been provided almost entirely by Tethys, monies received by KPL from this transaction will first be utilized to repay these loans to Tethys. The exact amount to be confirmed by the Tajikistan government; KPL will be partially carried on a USD80 million initial work program such that it will pay 33.33% of its share of costs (therefore the funding obligation will be approximately USD8.9 million of the USD80 million work program); the initial work program is expected to comprise of further seismic data acquisition followed by a deep exploration well; and the PSC will be operated by a Joint Operating Company to be set up and owned by KPL, Total and CNODC, in proportion to their ownership in the PSC.
Total S.A. is a French multinational oil and gas company and one of the six “Supermajor” oil companies in the world. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a large-scale chemicals manufacturer. The company has its head office in the Tour Total in the La Défense district in Courbevoie, West of Paris.
China National Petroleum Corporation (CNPC) is a Chinese state-owned oil and gas corporation and the largest integrated energy company in the People's Republic of China. It has its headquarters in Dongcheng District, Beijing. CNPC is the parent of public-listed PetroChina, a company created on November 5, 1999 as part of the restructuring of CNPC. In the restructuring, CNPC injected into PetroChina most of the assets and liabilities of CNPC relating to its exploration and production, refining and marketing, chemicals and natural gas businesses. CNPC and PetroChina develop overseas assets through a joint venture, CNPC Exploration & Development Company, which is 50% owned by PetroChina.