Mobil, Monument and Republic of Turkmenistan Form Strategic Alliance to Explore and Develop Zone 1 in Western Turkmenistan.FAIRFAX, Va.--(BUSINESS WIRE)--April 22, 1998--Mobil Corporation announced today that Mobil Exploration and Producing Turkmenistan, Inc. and its partner, the U.K.-based Monument Oil and Gas plc., signed an agreement forming a strategic alliance with the Republic of Turkmenistan and Turkmenneft, the State Oil Concern of Turkmenistan, to pursue exploration and development opportunities on the Zone 1 (now named Garashsyzlyk or "Independence") concession located onshore Western Turkmenistan. The signing took place at Blair House Blair House is the official state guest house for the President of the United States. It is located at 1651-1653 Pennsylvania Avenue NW in Washington, D.C., opposite the West Wing of the White House, and adjacent to Lafayette Park. during a state visit of His Excellency HIS EXCELLENCY. A title given by the constitution of Massachusetts to the governor of that commonwealth. Const. part 2, c. 2, s. 1, art. 1. This title is customarily given to the governors of the other states, whether it be the official designation in their constitutions and laws or not. Sapamurat Niyazov, President of the Republic of Turkmenistan. It marks the culmination of more than a year of negotiations and the completion of a joint technical study conducted on the block under a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. signed by the parties early in 1997. The Independence block is an onshore continuation of the prolific Apsheron trend in the South Caspian Sea Caspian Sea (kăs`pēən), Lat. Mare Caspium or Mare Hyrcanium, salt lake, c.144,000 sq mi (373,000 sq km), between Europe and Asia; the largest lake in the world. and is located adjacent to the Nebit Dag Dag(h)da great god of Celts; father of Danu. [Celtic Myth.: Parrinder, 68; Jobes, 405] See : Fatherhood Dag (h)da god of abundance, war, healing. [Celtic Myth. concession which contains the producing Burun field. The agreement defines the geographic areas of future cooperation, establishes the commercial terms of reference Terms of reference allude to a mutual agreement under which a command, element, or unit exercises authority or undertakes specific missions or tasks relative to another command, element, or unit. Also called TORs. and sets the timetable for final commercial agreements including the execution of a production sharing agreement Production sharing agreements (PSAs) are used primarily to determine the share a private company will receive of the natural resources (usually oil) extracted from a particular country. (PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. ) covering the exploitation of underdeveloped deeper resources discovered below the Kotor Tepe, Barsa Gelmes and other fields and all exploration and appraisal activities below and outside the boundaries of the existing producing fields. It will be operated by Mobil with a 52.4 percent interest; Monument will hold a 27.6 percent interest, and Turkmenneft, a 20 percent interest. The agreement anticipates the completion of the terms of the PSA by mid-1998. In addition, it includes a provision where the government of Turkmenistan, Mobil and Monument will further advance their strategic alliance by pursuing additional exploration, production and transportation opportunities in Turkmenistan. "The Independence block will be a good strategic and operational fit with our existing position and is another step toward our goal of building a major hydrocarbon reserve position in Western Turkmenistan," said Mobil Chairman and Chief Executive Officer, Lucio A. Noto. "Earlier this year first oil production began and just last month first exports of the production occurred. Mobil is proud to play a part in developing these resources with the Turkmenistan government and its people. "This agreement also enhances our strong and integrated position in the Caspian region, including joint ventures in Azerbiajan and Kazakhstan, where Mobil has a 25 percent interest in the Tengiz field Tengiz field, in western Kazakhstan, is located in the low-lying wetlands along the northeast shores of the Caspian Sea. Discovered in 1979, Tengiz oil field is one of the largest discoveries in recent history. . Mobil's share of production from the Region is currently about 50,000 barrels of oil a day (TBD TBD abbr. to be determined ) and it is expecated to increase to over 200 TBD by 2005." In 1997, Mobil became the first major international oil and gas company to invest in Turkmenistan, joining Monument in a PSA with the Turkmenistan government to develop and explore for hydrocarbons in the 2,000-square kilometer, onshore Nebit Dag concession in Western Turkmenistan. Gross production from the Burun field is currently at 10 TBD and is expected to increase to 20 TBD by year-end. Last month, Mobil shipped its first cargo of crude oil from the port of Aladja, Turkmenistan across the Caspian Sea to Baku, Azerbaijan. . Mobil Exploration and Producing Turkmenistan, Inc. holds a 40 percent interest in the Nebit Dag concession; Monument Oil and Gas plc, the operator, holds a 35 percent interest, and Burren/VSTT holds an 25 percent indirect interest. For more news and information about Mobil, please see us the World Wide Web at www.mobil.com/news. CONTACT: Mobil Corp. Tom Cooney, 703/846-4476 |
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