China National Petroleum Corporation (CNPC), China's largest oil
producer, has entered into two cooperative contracts with
Uzbekistan, in Central Asia.
The company's in-house journal has announced the ratification of
a production-sharing agreement on Wednesday with Uzbekistan's
Uzbekneftegaz, Russia's Lukoil, Malaysia's Petronas and South
Korea's National Oil Corporation to explore and develop prospective
natural gas deposits in the Aral Sea.
The contract was signed after CNPC received exploration
permission in five onshore blocks in Uzbekistan nearly ten days
ago.
The launch of the two projects brings the countries receiving
investment from CNPC to 24.
Uzbekistan claims a 10,000-square-km area in the Aral Sea, which
is considered to have great oil and gas reserves.
The partners plan to collect seismic data and drill two wildcat
wells in the first three years. Then they will establish a joint
venture to carry out exploration work, said CNPC.
Uzbekistan has oil reserves of more than five billion tons and
natural gas reserves exceeding five trillion cubic meters. Its
proven oil reserve is 530 million tons and natural gas, 3.4
trillion cubic meters.
CNPC signed oil and gas cooperation contracts with Uzbekneftegaz
during Chinese President Hu Jintao's visit to Uzbekistan in June
2004.
The two companies signed the exploration agreements for the five
onshore blocks in June this year, under which they will collect
two- and three-dimensional seismic data and drill 27 wells in the
34,000 square-km area in five years.
The two projects would avail CNPC of a gradual exploration of
the country and contain potential for oil and gas discoveries of
good commercial scale, said the company.
(Xinhua News Agency September 3, 2006)