CANADIAN COMPANY TO START OIL AND GAS PROSPECTING IN ARMENIA

Armenpress

YEREVAN, MAY 2, ARMENPRESS: A Canadian TransEnergy company is set to
start a large-scale oil and natural gas prospecting project in Armenia’s
Armavir region in summer. The project is based on findings of earlier
studies to discover crude oil in Armenia in 1994-1995, initiated by the
Armenian energy ministry within the frameworks of a TACIS program on the
assessment of hydrocarbon potential of the country.
Independent experts then concluded that there were grounded prerequisites
of oil reserves of industrial significance. Andranik Aghabalian from energy
ministry said an advertising campaign was started at various international
exhibitions, as a result the Canadian company was granted the license to
carry prospecting works in Armavir, which is the second of six zones that
may have industrial oil reserves.
Under the agreement with TransEnergy, it will cover all cost of the
project. In case of successful studies the Armenian government and the
company will exploit the filed oils jointly.
TransEnergy and the government are close also to striking a deal on
prospecting in Tavush region.