Kyrgoil Corp., Calgary, expects to start up Kyrgyzstan's first refinery this month.
The Canadian firm had a modular 10,000 b/d capacity refinery built by Petrofac International Ltd., Tyler, Tex., and shipped to Jalabad, Kyrgyzstan, for assembly.
Kyrgoil said construction work is complete, and the plant is expected to be officially inaugurated Oct. 15. Oil will reach the plant through an existing gathering and pipeline system.
Kyrgoil and state firm Kyrgyzneft have formed a joint stock company, Kyrgyz Petroleum Co. (KPC), to refine all of the country's oil production.
Production licenses
In addition to the refinery, KPC also has exclusive rights to boost or reactivate production from 628 wells in Kyrgyzneft licenses, many currently shut down for lack of new equipment and spare parts.
Kyrgoil said production from these wells currently averages 1,500 b/d. The venture aims to increase production to 25,000 b/d within 4 years, with all production in excess of 1,500 b/d being shared by KPC partners.
Estimated reserves remaining in KPC licenses total about 120 million bbl of oil: 53.5 million bbl proven in producing fields, 54.5 million bbl proven in undeveloped finds, and 12 million bbl probable.
Under the KPC venture, Kyrgoil has attributable reserves of 48 million bbl of oil.
KPC holds a license to drill new wells at any location covered by Kyrgyzneft licenses, provided they are within 20 km of an existing well.
The venture can also drill in any area not covered by Kyrgyzneft licenses and not licensed to any other operator, provided the well is less than 20 km from an existing well.
Kyrgoil is expected to invest $23 million initially in the refinery and well operations, after which KPC revenues are expected to fund further capital spending.
The company said its first year plans include improved recovery efforts in 100 wells, stimulation of 15 existing wells, completion of 15 wells, and drilling of two exploratory and 10 development wells.
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