28 March 2019, the Turkmennebit state concern and the Areti International Group of Companies have signed a Memorandum of Understanding to co-operate in the development of the Uzynada onshore gas-condensate discovery. Under the MoU, Areti will be studying the field data provided by Turkmennebit for about a year, and will then start negotiating a service contract.   Areti International currently holds an E&P contract for the neighbouring offshore Block 21. The company has held the block since 2009, however, little exploration work has been reported since.  The Uzynada discovery is located close to the Caspian coast and Block 21. It was discovered by well no. 7 in May 2017. The well has been drilled to 7,150 m and is the first super-deep well in Turkmenistan. It flowed gas with condensate at rates of 17.1 MMcf/d and 1,200 b/d, respectively, from the interval of 6,689-6,695 m. Uzynada is key in understanding the potential prospectivity of Block 21.  Turkmenistan only offers service contracts onshore, while E&P contracts are possible for offshore Caspian blocks, on a direct negotiations basis.  Background Information  A PSA for Block 21 was originally signed with Itera, a Russian gas producing and distributing company, in September 2009. Having sold its gas business to Rosneft in 2013, Itera was rebranded as Areti.   Due to lack of offshore E&P experience, Itera invited Zarubezhneft of Russia as the operating partner with 51% interest in the project in 2011. However, Zarubezhneft quit in 2013, having failed to obtain Turkmen authorities permission to farm into the PSA.   According to Areti, it was planning to drill a first exploration well in the West Erdekli prospect close to the coast, in 7-15 m of water, with a planned TD of 6.0-6.5 km. The company estimates the blockâs undiscovered resources at 700 billion cubic metres (24 Tcf) of non-associated gas.   In 2011, Itera completed a geochemistry survey of the Block 21 contract area as well as a 2D/3D seismic acquisition programme. The latter programme was carried out by Sevmorgeo, a Russian service company. The survey covered the entire blockâs territory including the transitional zone. The geochemistry survey was carried out by Pangea, also a Russian service company.
Turkmennebit and Areti Intl Group of Coâs signed an MoU over future co-operation in the devt of the Uzynada onshore gas-condensate discovery near the Caspian coast, towards which a service contract could be negotiated by Areti.