Russia's Tatneft is set to explore an Uzbekistan oil block after signing two agreements with state-owned Uzbekneftegas, the second of which is also set to lead to it entering an enhanced oil recovery project, writes Vladimir Afanasiev.

Under the first deal, Tatneft will inject capital into gathering seismic data and drilling exploration wells on the Pritashkentsky block, Uzbekneftegaz chairman Bakhodirjon Sidikov said.

In the case of a commercial discovery, Tatneft will have the priority right to sign a production sharing contract for the block or negotiate a joint venture agreement with Uzbekneftegaz to continue with the project, Sidikov said on the sidelines of an industry event in Uzbekistan’s capital, Tashkent, mid-week.

Under the second contract, Tatneft will bring its proprietary technologies to the country to initiate an enhanced oil recovery programme at three Uzbekneftegaz oil blocks — Andizhansky, Palvantazhsky and West Palvantazhsky.

In Russia, Tatneft operates mainly old and depleted fields in its home region of Tatarstan, where it has successfully experimented with various recovery methods.

These allowed the company to stabilise and slightly increase its output year-on-year.

According to Sidikov, Uzbekneftegaz has been offering prospective hydrocarbon blocks to potential international partners that are ready to invest and take exploration risks in the country where authorities aim to open the oil and gas sector to foreign players and establish clear and fair operating rules and a regulatory environment.

Earlier this year, Russian oil producer Lukoil agreed to explore three blocks in Uzbelikstan's Navoiskaya region, with the company considering its involvement into three additional blocks in the country, Sidikov said.

Uzbekneftegaz has also offered several blocks for consideration to France's Total, Russian independent Novatek and an alliance between UK supermajor BP and Azerbaijan’s Socar, with the companies currently considering the potential of these assets.

Besides these players, Sidikov said that interest in exploration blocks in the country is being displayed from United Arab Emirates’ Mubadala Petroleum, with talks also started with Italy’s Eni.

Most of the blocks have some prior seismic data gathered during the Soviet era, with some exploration wells drilled earlier.

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Tatneft in Uzbek focus