Tethys Kazakhstan, a subsidiary of Tethys Petroleum, signed an MOU with PetroChina International Kazakhstan to explore the feasibility of a long-term and mutually beneficial co-operation in natural gas and crude oil deliveries. The main collaboration area to be explored by the parties is the proposed delivery of gas and crude oil for export to The People’s Republic of China, and also for the internal market of the Republic of Kazakhstan. Tethys has the right to export gas to China already and can sell oil on the domestic market currently, obtaining the right to export oil upon conversion of the Akkulka Exploration Contract to a Production Contract.
The company and its joint venture partners CNPC and Total in the Tajik Bokhtar PSC, have recently agreed to reduce this year’s exploration budget by nearly a third through overhead cost reductions, a well-balanced selection of seismic acquisition parameters, and optimised timing of pre drilling costs in the current drilling contractor market. These cost reductions have not affected the progress towards completion of the seismic survey aimed at locating the first deep exploration well planned for this acreage. Apart from the reduction in the CAPEX programme, the joint venture partners have agreed to reduce the running costs of the Bokhtar Operating Company to reflect the lower oil price environment.