Roxar secures Wetgas meter deal in Turkmenistan
Stavanger, Norway, 25 March 2009. Roxar ASA (Oslo Børs: ROX), a technology solutions provider to the upstream oil and gas industry, today announced a contract worth NOK 17 million for wet gas meters to be installed in the gas fields of Turkmenistan in Central Asia. This strategically important deal reinforces Roxar’s growing presence in the Central Asian Republics.
The Roxar Wetgas meter has a unique capability and accuracy in measuring water in a gas flow. This allows for continuous measurement of water during production and immediate detection of formation water breakthrough in a well. Such information is essential for a safe operation of a gas wells and to prevent a potential loss of the well from hydrate or scale plugs. The meter is also used for reservoir management, optimising the production process and allocation of revenue streams from fields.
Turkmenistan is one of the world’s leading producers of natural gas with proven reserves of 2.67 trillion cubic meters (Source: BP Statistical Review of World Energy 2008). Production challenges in Turkmenistan, which supplies natural gas to Russia, Europe and, in the future China, includes high pressures, varying water depths in offshore fields, fractured carbonates prone to water breakthrough, and the need for long-term reliability.
Said Roxar CEO, Gunnar Hviding:
“As Central Asia’s largest gas producer, Turkmenistan is a crucial supplier of natural gas to Russia, Europe and, in the future, China. Roxar is delighted to be working with operators in a region of such strategic importance to help guarantee this supply and support flow assurance and production optimisation. The news is also a signal of intent from Roxar in its determination to increase its presence in Central Asia and meet the region’s challenges head-on.”
“Whether it be production well testing, improved reservoir management, or hydrate prevention, the accurate measurement of wet gas flow is crucial to managing Turkmenistan’s gas fields. The Roxar Wetgas meter and its proven technology, functionality and accuracy is unrivalled in meeting these challenges.”
In 2008, Turkmenistan produced 70.5 billion cubic meters of gas, of which 47 billion was exported, with Russian gas giant Gazprom being the country’s largest customer (Source: Alexander’s Oil & Gas Connections). The South Yolotan-Osman field in the southeast of Turkmenistan has recently been identified as the fifth largest field in the world, containing between 4 trillion and 14 trillion cubic meters of gas in place according to Gaffney Cline & Associates, an oil advisory firm.
Work on a gas pipeline, to be laid jointly by Turkmenistan, Russia and Kazakhstan in the Caspian Sea area, is due to start in 2009. In addition, China is building a 7,000 kilometer pipeline from Turkmenistan that will have the capacity to bring 30 billion cubic meters a year. Turkmenistan has also agreed to supply 10 billion cubic meters of gas per annum to the European Union via the Caspian Sea.
Roxar creates value for its customers through its Reservoir Interpretation, Reservoir Modeling, Reservoir Simulation, Well and Completion, Production and Process Solutions and Consultancy Services.
About Roxar
Roxar (Oslo Børs: ROX) is a leading international technology solutions provider to the upstream oil and gas industry. The company creates value for its customers through innovative products and services that help achieve maximum performance from oil and gas reservoirs.
With its head offices in Stavanger, Norway, Roxar employs over 800 staff and has 28 offices in 19 countries with a network of wholly owned offices in Europe, the Americas, Africa, CIS, Asia Pacific and the Middle East.
Roxar’s International customer base includes all of the multinationals, major independents and the majority of national oil companies.
For Further Information
Hege Forus, Investor Relations Manager Roxar
Tel: +47 99 24 11 09
Email: hege.forus@roxar.com