New Projects in Libya

4 Apr 2007 15:59

O.A.O. Tatneft04 April 2007 4 April 2007 On 4 April 2007, OAO Tatneft issued the following press release: Tatneft's New Projects in Libya On 29 March 2007 OAO Tatneft and the National Oil Corporation of Libya signed inTripoli three exploration and production sharing agreements for three large oilfields in Libya of total size of 16 000 square km. OAO Tatneft has won theright for exploration and production of these fields in an open tender held inDecember 2006, in which 46 oil companies from different countries of the worldhave participated. Term of the agreements is 30 years. Aggregate exploration program for thesefields contemplates seismic surveys and drilling 16 wells. The volume of oilreserves will be clarified upon completion of the exploration works. On the same day, negotiations between Shafagat Takhautdinov, the GeneralDirector of OAO Tatneft, and Shukri Ganem, the Chairman of the National OilCorporation of Libya, took place. At the meeting the parties discussed proposalsof Tatneft's involvement in works on Libyan oilfields with falling productionand methods of enhanced recovery. Also the parties discussed possibility ofestablishing a joint venture by LLC "TNG-Group", Tatneft's management company,for providing services in seismic surveys, field wells analysis, drilling andcapital workovers. This is not Tatneft's first contract in Libya. In accordance with theexploration and production sharing agreement for block No. 82-4 signed inDecember 2005 exploration works are currently taking place. In March 2007seismic works were started and drilling of the first exploration well iscontemplated upon their completion by the end of this year. Information: Libya's annual oil production is 80.1 mln tons, consumption - approx. 12 mlntons, the balance is exported, primarily (approx. 90%) to Europe. Libya'sproved reserves are approx. 5.5 bln tons. Press-service of OAO Tatneft Forward-looking statements: This press release contains certain forward-lookingstatements of OAO Tatneft. OAO Tatneft can give no assurance that any of theevents mentioned in such statements will occur, or as to the precise timing oftheir occurrence. This information is provided by RNS The company news service from the London Stock Exchange