WILL ARMENIA EXPORT OIL?
Artem Yerkanyan "PanARMENIAN.Net" analytical department
PanARMENIAN.Net
23.06.2006 GMT+04:00
International experts are optimistic about the restarted works in
search for oil and gas occurrences.
In September Transeuroenegery Corporation, Canada, will launch
exploring works to search for hydrocarbon in Armenia. The essential
equipment will be brought in the near future and very soon it will
be possible to say whether Armenia has a chance to enter the cartel
of oil exporting states.
/PanARMENIAN.Net/ Specialists spoke of the necessity of exploring
works still in 1950-ies. In mid 1970-ies the matter grew serious. But
at that time the exploration was rather scientific than commercial
and no serious funds were invested in it. Now the optimism has grown
and Transeuroenegery Corporation has long-term plans. Canadians are
ready to spend over $10.5 million on the first stage of the works
that will take some 5 years. If things go well new investments will
be made. The other day the company leadership concluded an agreement
with a foreign company engaged in prospecting of oil and gas, which
will deliver modern equipment to Armenia. This equipment will allow
prospecting the bowels of the earth at a depth of 2500 km. The works
will start in September while the first results will be known in
February 2007. The Yerevan office administration is more optimistic
about gas than oil. It should be also noted that the gas-well boring is
easier. The exploring works will be launched in three Armenian regions
– Armavir, Krasnoselsk and Shoghaghbyur. The Armavir sector is rated
as the most promising. The only question is how much it will cost.
The first serious attempt to set oil and gas prospecting on a
commercial path was made 10 years ago. At that time the California
Energy Commission came to rather optimistic conclusion on oil
and gas occurrences in the Armavir sector and even calculated the
presumable amount of oil. January 27, 1997 the Armenian government
and the Armenian-American exploration company signed a contract on
prospecting in the Armavir license sector. The works were launched
the same year however they did not last long. In July 2000, after
the death of company owner Alen Poslen, the works were stopped. Since
that time the company has just been processing the data received and
looking for financial partners. In early 2004 Canada-based Idusmin
Energy purchased the rights of the Armenian-American exploring company
and resume works in Armavir. In autumn the company was renamed into
Transeuroenegery Corporation. Before this the Canadians proceeded to
prospecting in the northeast sector near Krasnoselks. In January 2003
the Corporation signed an appropriate memorandum with Geoenergetika
CJSC. At that time Indusmin Energy received the right for conduction
of exploring works on a territory of 3.5 thousand km2.
"I am sure there are oil and gas deposits in Armenia," said Head of
the Corporation Armenian Office Mike Smith. According to him, the
optimist is conditioned by the fact that there are rich occurrences of
hydrocarbon stuff very close to the Armenian border with Turkey. There
are also hydrocarbon occurrences in Georgia and foreign companies have
already invested over $70 million in oil exploring in Georgia. By
the way, Indusmin Energy, which is engaged in prospecting works in
two geological sectors in Imeretia, was among the investors. The
Canadians put up over $35 million.
They bored a well that has given 160-170 tons of oil annually since
1995. In Ninotsminda region, Javakhk, oil is being prospected
for a long time already. It’s unnecessary to speak of Iran and
Azerbaijan. Thus, if all our neighbors have hydrocarbon we should
have it too. The problem is that no proper attention was paid to oil
and gas prospecting. Now, when the matter is seriously treated we
can hope that Armenia will transform from an oil importing country
into an exporting one.