DUSHANBE, April 1 2013, Asia-Plus  -- The Government of Tajikistan has reportedly approved the participation of subsidiaries of Total S.A. (Total) and the China National Petroleum Corporation (CNPC) in the Bokhtar Production Sharing Contract.

Tethys Petroleum Limited (Tethys), the oil and gas exploration and production company focused on Central Asia, on March 31 announced its annual results for the period ended on December 31, 2012.

According to press release issue by Tethys, the financials are highlighted by a 66% increase in annual oil and gas revenue and the first year in which the Company has generated a cash profit.

Updated Tajik independent Resource Report reportedly estimates gross unrisked mean recoverable resources to be 27.5 billion boe (the barrel of oil equivalent)

It is expected that a farm-out agreement (FOA) for the Company’s Tajik assets will be completed in Q2 2013, press release said, noting that the Tajik Government has approved the participation of subsidiaries of Total and CNPC in the Bokhtar Production Sharing Contract and remaining points are now being finalized.  All three parties are working hard jointly to achieve closing as soon as possible.

As part of the transaction, the new Joint Operating Company will present a comprehensive work program upon completion of the FOA for the remainder of 2013, press release said.

We will recall that Tethys announced on December 21, 2012 that its subsidiary, Kulob Petroleum Limited, has signed the FOA for the Bokhtar Production Sharing Contract (PSC) in Tajikistan with subsidiaries of Total and the China National Oil and Gas Exploration and Development Corporation (CNODC).

Terms highlights are the following: the interest in the PSC will be held equally by the three partners namely Kulob Petroleum Limited (KPL), Total E&P Tajikistan B.V. (a subsidiary of Total S.A.) and CNODC Coop UA (a subsidiary of CNODC); Tethys owns an indirect 85% controlling interest in KPL; KPL will receive 66.67% of back costs amounting to a payment of approximately USD60 million in cash upon completion.  As funding for this project to date has been provided almost entirely by Tethys, monies received by KPL from this transaction will first be utilized to repay these loans to Tethys. The exact amount to be confirmed by the Tajikistan government; KPL will be partially carried on a USD80 million initial work program such that it will pay 33.33% of its share of costs (therefore the funding obligation will be approximately USD8.9 million of the USD80 million work program); the initial work program is expected to comprise of further seismic data acquisition followed by a deep exploration well.  Full details of the 2013-2014 work program will be announced in Q1 2013; and the PSC will be operated by a Joint Operating Company to be set up and owned by KPL, Total and CNODC, in proportion to their ownership in the PSC.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in Kazakhstan, Tajikistan and Uzbekistan.  “This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits,” press release issued by Tethys said.

Total S.A. is a French multinational oil and gas company and one of the six “Supermajor” oil companies in the world.  Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading.  Total is also a large-scale chemicals manufacturer.  The company has its head office in the Tour Total in the La Défense district in Courbevoie, West of Paris.

China National Petroleum Corporation (CNPC) is a Chinese state-owned oil and gas corporation and the largest integrated energy company in the People''s Republic of China. It has its headquarters in Dongcheng District, Beijing.

CNPC is the parent of public-listed PetroChina, a company created on November 5, 1999 as part of the restructuring of CNPC.  In the restructuring, CNPC injected into PetroChina most of the assets and liabilities of CNPC relating to its exploration and production, refining and marketing, chemicals and natural gas businesses.

CNPC and PetroChina develop overseas assets through a joint venture, CNPC Exploration & Development Company, which is 50% owned by PetroChina.