Transmeridian Issues Statement On Russian Environmental Inspections At Gasha Field

Houston-based Transmeridian Exploration on 27 July issued a statement following media reports from Russia saying the Russian environmental regulator had asked the Federal Agency for Natural Resources to revoke the license belonging to a Transmeridian subsidiary, DNK, to develop the Gasha oilfield in Dagestan. The regulator accused Transmeridian of a number of environmental violations at Gasha where the company indirectly holds a 50% interest. The US firm said it had not received official notification of any violation of the licensing agreement covering the field. “The company has conducted a base study of the environmental damages resulting from the previous development work conducted during the Soviet era from 1950-1975,” Transmeridian said, adding: “The current work program as submitted to the [Russian] government provides for remediation of these damages as well as a plan to handle all environmental contamination in accordance with applicable rules and regulations.” Transmeridian said that through its wholly owned Cyprus subsidiary, DNK, which operates Gasha, some $3.5mn had been invested in the acquisition of a 50% interest and early-stage evaluation work. The field is not producing, no reserves are booked by Transmeridian, and the company says it does not intend to conduct significant additional development activities during the balance of 2007.

Other recent developments in the Caspian and Black Sea regions include:

  • The Caspian Pipeline Consortium (CPC) on 1 August reported that shipments through the pipeline increased to 681,000 b/d during July compared to 664,500 b/d in June (MEES, 16 July, 9 July). Most of the volume shipped to the Black Sea is Kazakh crude, but Russian producers TNK-BP, Surgutneftegas and Rosneft also export through the 1,510km pipeline.  

  • Opening of the Interconnector-Greece-Turkey (IGT) gas pipeline linking the Turkish and Greece national gas networks has been delayed until 15 September due to unfinished work at the Meric River crossing in Thrace. The pipeline will carry Shah Deniz gas to Greece and later connect with the Interconnector-Greece-Italy (IGI) pipeline that will run across the Adriatic Sea to southern Italy (MEES, 30 July).  

  • Kazakhstan on 30 July reported a fire on the Uzen-Atyrau pipeline, which feeds into the larger Atyrau-Samara pipeline to Russia. Shipments through the Uzen-Atyrau line were halted but the Atyrau-Samara route was not affected. The pipeline was brought back into operation on 1 August.  

  • An official at Russia’s Gazprom gas monopoly was quoted by Reuters on 26 July as saying plans by Turkmenistan to develop new export routes from its natural gas production to China and Iran are unlikely to happen soon. Besides signing a major export agreement with Russia in May, Turkmenistan has recently signed a 30-year, 30 bcm/year agreement with China that requires the construction of a new gas pipeline through Uzbekistan and Kazakhstan (MEES, 23 July, 21 May). An agreement signed between Turkey and Iran regarding Iranian gas shipments for the proposed Nabucco gas pipeline to Europe, suggests that shipments of Turkmen gas could be shipped across northern Iran to Turkey for further export via the Nabucco project (MEES, 23 July).  

  • Azerbaijani President Ilham Aliyev is to visit Kazakhstan on 7-8 August. Topics of discussion with Kazakh President Nursultan will include proposals to transport Kazakh hydrocarbons across the Caspian Sea with special attention given to Kazakh crude oil exports using the Baku-Tbilisi-Ceyhan (BTC) pipeline.  

  • Chevron is in discussions with Turkmenistan about the development of the offshore Kyapaz/Serdar oilfield. The structure is claimed by both Azerbaijan and Turkmenistan and the dispute has damaged relations between the two Caspian littoral states. Since the new Turkmen President Gurbanguli Berdymukhamedov came to power in February, the two countries have made efforts to improve relations. Chevron, which holds shares in Azerbaijan’s offshore Azeri-Chirag-Guneshli (ACG) oilfields and the BTC crude oil pipeline, has informed the Azerbaijani authorities of its contact with Turkmenistan on the subject.  

  • The UAE’s International Petroleum Investment Company (IPIC) and Shell are negotiating for oil and gas exploration contracts in Turkmenistan, according to the Emirates News Agency, WAM. The agency on 2 August reported that IPIC Managing Director Khadem al-Qubaisi had visited Ashgabat and discussed with Turkmen officials investment in the country’s oil and gas sectors in line with a memorandum of understanding (MOU) signed in September 2006 by the UAE and Turkmenistan on joint energy cooperation. Mr Qubaisi also discussed a proposed 700,000 ton/year ammonia/urea plant to be built in southern Turkmenistan.  

  • A Turkish energy official on 1 August said Ankara favored Germany’s RWE Dea as the sixth partner in the proposed $6bn Nabucco gas pipeline, according to Reuters. Four companies have been shortlisted by the Nabucco consortium, among them Gaz de France. Nabucco partners are Austria, Hungary, Romania, Bulgaria and Turkey. A sixth partner is due to be selected before the end of the year (MEES, 23 July).