Companies@UA: База компаний Украины

Kyiv, August 5 (Interfax) - Ukrainian national oil and gas company Naftogaz Ukrainy may bid in tenders to develop hydrocarbon fields in Algeria and Egypt, the company said in a press release highlighting its projects in North Africa and the Middle East.

The tenders are being conducted by the state agencies for hydrocarbons use in the two countries: ALNFAT and Egypt's Ganope.

The press release notes that under the Ukraine-Egypt program, Naftogaz continues to drill the Sedfa-1Х, which reached a depth of 2,770 meters on August 5. It began drilling the Hend-1X field on June 23 and had reached a depth of 1,416 meters on August 5. Drilling sites have also been prepared for the Noura-1 and Mоsaad-1.

Under the Ukraine-UAE project, drilling continues at Hamad-1, which has a planned depth of 5,500 meters, at the "C" onshore license block of the Emirate of Fujairah. Hamad-1 had been drilled to a depth of 3,160 meters as of August 1.

Naftogaz says it is currently negotiating with Abraj Energy Services (UAE) to reduce the daily rate for lease of the drilling rig.

"Agreement has been reached with the government of Fujairah on the early release of the $42.5-million bank guarantee for the onshore blocks provided to the company. The appropriate procedures have been completed," the press release says.

Naftogaz concluded a concession agreement with Egypt and Egyptian General Oil Corporation on development of the Alam El Shawish block, which covers 994 square kilometers in Egypt's western desert. The first exploration well at the block, Hg-34/3, yielded a flow of oil at a depth of 3,505 meters equal to 80 tonnes (588 barrels) a day.

Naftogaz has high hopes for the field located in the southern portion of the concession territory, where development is scheduled to start in the near future.

The production program running to year-end calls for drilling five exploration wells at the southern section of the Alam El Shawish block.

The press release also notes that Naftogaz signed a production-sharing agreement with the government of the Fujairah and Naftogaz Middle East LLC on January 26, 2005, which covers exploration for hydrocarbons in the emirate and development and production in the event of discovery.

Exploration and production work was planned at two onshore blocks and two offshore blocks in the Gulf of Oman. The initial stage called for drilling six exploration wells.

Another agreement, signed in May 2005 with the Al-Jazeera production company, covers profit-sharing in an investment project expected to yield 47 billion cubic meters of gas and 14.9 million tonnes of gas condensate a year. The agreement is valid for 29 years, including a four-year exploration period.

Naftogaz Ukrainy, which includes Ukraine's largest oil and production companies, is the monopoly for transit and storage of natural gas. It also operates the oil pipeline network.