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RESOLUTION OF THE PRESIDENT OF TURKMENISTAN

of February 4, 2003 No. 6121

About creation of the Industry commission on liquidation of wells on oil, gas and other minerals and to write-off of costs on their construction and approval of the Regulations on procedure for liquidation of oil, gas and other wells and write-off of costs for their construction

For the purpose of state regulation of questions of protection of subsoil of Turkmenistan against pollution and interbedded overflows, enhancement of procedure when designing, drilling, operation, preservation and liquidation of deep wells on oil, gas and other minerals, developments of the rules meeting international standards, and I decide increases in responsibility for resulting effects of works:

1. Create under the Ministry of the oil and gas industry of mineral resources of Turkmenistan the permanent industry commission on liquidation of wells on oil, gas and other minerals and to write-off of costs for their construction the Industry commission) in structure according to appendix hereinafter is referred to as further.

2. Approve the enclosed Regulations on procedure for liquidation of oil, gas and other wells and write-offs of costs for their construction.

3. Quarterly to represent to the industry commission to the Cabinet of Ministers of Turkmenistan data on the wells liquidated in the accounting period.

4. To impose control over the implementation of this resolution on the Vice-chairman of the Cabinet of Ministers of Turkmenistan Gurbanmuradov E.

 

President of Turkmenistan Saparmurat Turkmenbashi

Appendix

to the resolution of the President of Turkmenistan of February 4, 2003 No. 6121

Structure of the Industry commission on liquidation of wells on oil, gas and other minerals and to write-off of costs for their construction

Tagiyev T. - Minister of the oil and gas industry and mineral resources of Turkmenistan (commission chairman)

Babayev of X. - The chairman of the State company for questions of the Caspian Sea in case of the President of Turkmenistan

B.R.'s Not diditch - the head of department of the analysis and perspective of development of source of raw materials of oil, gas and mineral resources of the Ministry of the oil and gas industry and mineral resources of Turkmenistan

Oganesyan M. B is the head of department of the summary economic analysis and reporting of the Ministry of the oil and gas industry and mineral resources of Turkmenistan

Kakayev Ya. - head of department of the analysis and perspective of development of the gas industry of the Ministry of the oil and gas industry and mineral resources of Turkmenistan

Kumshiyev O. is the chief geologist of Turkmenneft State concern

Halylov M. is the chief geologist of Turkmengaz State concern

Geldinazarov A. - chief geologist of the Turkmengeologiya State corporation

Kurbanov A. - chief geologist of Turkmenburgaz trust of Turkmengaz State concern

Hydyrov M. B. is the director of Institute of oil and gas of Turkmengaz State concern

Ashirmamedov M. A. - director of oil and gas and design institute of Turkmenneft State concern

O. A. hypostases - director of research prospecting institute of the Turkmengeologiya State corporation

 

Approved by the resolution of the President of Turkmenistan of February 4, 2003 No. 6121

Regulations on procedure for liquidation of oil, gas and other wells and write-off of costs for their construction

This Provision determines procedure for liquidation of oil, gas and other wells, and also write-offs of costs for their construction.

I. Procedure for reference to categories of the wells which are subject to liquidation (drilled by machines of oil row)

1. All wells finished with construction or which are in construction in the territory of Turkmenistan (on the land and the sea) for search, investigation or development of oil and gas deposits, iodine-bromine, mineral, geothermal waters, other minerals, and also for underground gas storages, condensate and oil products, liquidation of griffins, open gas-oil fountains and the fires, special purpose and other purposes are divided in case of liquidation and write-off of costs for their construction into six categories.

2. The basic, parametrical, search and exploratory wells pledged for the purpose of studying of geological structure, searches and investigation of fields of liquid and gaseous minerals, mestorozheniye of heat power underground waters and structures for underground storage warehouses belong to the I category:

a) the terminations of construction which executed the appointment and appeared later in adverse geological conditions "dry" or water on oil and gas fields, "dry" in underground gas storages and on fields of heat power waters.

Note. To executed the appointment the wells which opened the project horizon in the set point or reached project depth which section is completely researched in the geologic-geophysical plan according to the project for construction and in which all testing provided by the plan layers (horizons) are qualitatively tested belong;

b) the deepenings which did not open the project horizon, not brought to project depth and stopped by drilling owing to inexpediency for the geological reasons;

c) the this inflows of oil, gas, mineral, geothermal water on fields which inventories on all horizons are carried in accordance with the established procedure to off-balance;

d) the oil or gas which were this in case of approbation of the lower horizons, and in overlying water if return on the productive lower horizon for the purpose of its operation is impossible for technical reasons, and further work (descent of additional columns, drilling of the second trunk, insulating works, operation by means of packer etc.) is recognized concerns, corporations economically inexpedient;

e) the this inflows of oil, gas, hydrothermal waters or other fluids, but the ekpluatation of which in case of development is acknowledged as the companies, concerns and corporations unprofitable, and use of these wells for other purposes (delivery, control etc.) it is not provided by the project (scheme) of development;

e) drilled at the sea from drilling rigs (PBU, PPBU, SPBU, etc.), the industrial inflows of oil and gas which executed the appointment and this in case of impossibility of ensuring operation of wells.

The wells drilled from the figurative, removable sea stationary platforms (SSP) established at small depths for conducting seasonal works and intended for drilling only of exploratory wells and wells drilled from artificially created islands also belong to this category.

3. Treat the II category:

a) the operational wells drilled for the purpose of oil and gas extraction, opening layer in the set point, but which were "dry" or this water, and also the operational appraisal wells which executed the appointment and unsuitable for development;

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