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  • cwalser cwalser Jun 3, 1999 10:54 AM Flag

    Strength in Oils

    $600m oil well to test Caspian potential - The
    world's most sensitive well
    Financial Times, June
    3
    By Robert Corzine in Almaty

    Drilling at the
    world's most politically sensitive oil well will
    start
    in the next few weeks.

    The $600m investment
    in an exploratory well at the Kashagan
    field in
    the northern Caspian Sea is the biggest commitment
    for
    decades to a single well. Nine of the world's leading oil
    companies,
    including Royal Dutch-Shell and BP Amoco, are
    involved.

    The drilling, which is starting a year late, will
    answer
    questions about the viability of the region as a major
    oil
    producer and exporter.

    The Offshore Kazakhstan
    International Operating
    Company (OKIOC), the consortium
    overseeing the
    project, has based its commitment and
    expenditure on
    seismic evidence suggesting it is one of
    the world's last
    great undiscovered
    oilfields.

    The Kashagan structure, which lies more than
    14,000ft
    below the shallow waters of the remote
    northern
    Caspian, is three times the size of nearby Tengiz.
    That
    field, operated by Chevron of the US, is the largest
    oil
    reservoir discovered in the past 25 years and
    contains
    about 6bn barrels of recoverable reserves. A 1bn
    barrel
    oilfield is now considered to be a major world class
    find.

    Kashagan's seismic profile is similar to that of
    Tengiz,
    but consortium officials at their headquarters in
    Atyrau,
    the provincial capital on the Ural River, say there
    is only
    a 20 per cent chance of a discovery. "It
    will probably be
    nothing or a very big find," says
    Paul Jeffery, operations
    manager for the
    project.

    The consortium already has 40 experts in The
    Hague
    working on possible development options,
    suggesting
    optimism among shareholders, which also include
    Mobil
    of the US, Total of France, Agip of Italy, BG of the
    UK,
    Statoil of Norway, Philips of the US, and Impex
    of
    Japan. Last year the latter two companies paid
    the
    Kazakh government $500m for a combined
    one-seventh
    share in the project.

    According to Mike
    Simmons(BIG DOG) on SI, PKD is drilling the well.

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    • The article you posted on the Caspian Basin
      potential I found to be very interesting and pertinent to
      PKD. While I have been following this thread for a
      couple of months and have a minor position in this
      company I have rarely seen any reference made to PKD's
      role in the Caspian. While the cover of the 1998
      annual report is titled "Fishing The Caspian". Five
      years ago PKD assumed the role as the first western
      drilling contractor in the Caspian Basin, which is deemed
      to be one of the last real frontiers in the search
      for energy and quite possibly some of the world's
      largest deposits of oil and natural gas. While currently
      Parker may be suffering financially from the woes of the
      oil sector and to a small degree management
      difficulties their pioneering efforts in the Caspian Basin are
      to be admired. The technical, logistical, financial
      and political implications involved in this endeavor
      are incomprehensible to a layman such as myself. As
      mentioned in the article you posted it talks about PKD's
      association in the Tengiz Field of Kazakhstan and their
      involvement with many major players (big oil) who are
      involved in this project. In the Tengiz field they are
      primarily involved with Chevron and its Tengizchevroil
      partners, also mentioned was the -OKIOC-. Parker is
      providing the world's largest posted barge rig for the
      consortium's historical entry into Caspian waters. It states
      that industry observers will be closely watching this
      first-of-a-kind offshore drilling project. The area with possibly
      the largest reserves is Kazahstan, and that's where
      Parker has established its regional base. A first of its
      kind artic-class barge rig is expected to begin
      operations in early summer. Parker has led other western
      drillers in establishing operations and improving
      logistics management in the Caspian Basin. Long-term
      potential in this region could be enormous. With sustained
      crude prices and success in this region Parker could
      emerge as true leader as well as a sought after and
      pivotal driller. I am certain many believe Parker to be
      way out of there league on this one as they
      traditionally have been a land based driller. It's obviously
      risky but as a driller their going to be compensated
      for their efforts dry hole or not. No balls no glory.
      Which should ultimately lead to a healthy bottom line
      that would benefit all. I personally wish them success
      and look forward to seeing the results. There seems
      to be a great deal of concern over the number of
      "coldstacked" rigs, primarily domestics, rusting away right now
      but I think the ultimate savior
      could possibly be
      the Caspian operations. While I am a Hoosier I'm
      betting on the Okies in the long haul. I have inserted a
      hyperlink to Alexander's Oil & Gas with a couple of
      interesting articles. However, when you open the website it
      does not present the specific articles. You have to
      look under speeches and the on the left side hilight
      the pertinent articles. A newly added one titled -
      Caspian Oil & Gas : Shedding Illusions by Prof. Thomas
      Waelde is insightful and then a little lower on the list
      is on titled - The Legal Status of the Caspian Sea :
      A Card in the new 'Great Game'.

 
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