Richard Melson

August 2006

Caspian Investor

WorldTrade Executive, Inc. Concord, MA

WorldTrade Executive
P.O. Box 761, Concord, MA 01742 USA

Caspian Investor provides unequaled news and analysis of energy sector developments in the countries of Central Asia and the Caspian Sea region. Prepared by a seasoned staff of in-country journalists, only CI brings you the details you need to understand how regional developments will impact your business in this dynamic market.

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Dear Colleague:

Welcome to this month's edition of the


CASPIAN INVESTOR Executive Overview.

Following is your update on the events, decisions and players driving the
Caspian regions energy markets.

You can find full details on these events and more in this months print
edition of
CASPIAN INVESTOR.   And, you can review this months issues and
the next two issues with no cost or obligation by simply replying to this
email and updating your information at the bottom.

Please fee free to forward this
Executive Overview on to colleagues who
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CASPIAN INVESTOR EXECUTIVE OVERVIEW


** FEATURES **

- Kazakh Government Considers Caspian SSea Shelf Strategic Resource: An
Interview with Minister Vladimir Shkolnik

By Inna Gaiduk

Kazakhstan has become one of the most influential states in the Eurasian
space, holding the key place in tackling all major issues of contemporary
world politics in this region. The shelf holds a place of prominence in the
future of the country's oil and gas sector. The results of survey and
prospecting operations conducted in the past few years showed that the main
increases in recoverable reserves and hydrocarbon production should be
expected to come from new fields in the Kazakh sector of the Caspian Sea.
Preliminary estimates put recoverable reserves of Kazakhstan's Caspian Sea
shelf at more than 13 billion tons (100 billion barrels). But the success
of the program to develop the Kazakh sector of the Caspian Sea is
contingent to a considerable extent on the investment climate in the
republic, positive changes in the Kazakh legislation on subsoil use and
taxation issues and on solving the problem of export of the energy
resources.

- Chinese Expansion in Uzbekistan

By Ivan Nazarov

Uzbekistan has begun investing in oil and gas sector projects with
financing from the Chinese government. The projects are to be realized
during 2005-2007. Uzbekistan, where oil production has fallen steadily
since 2000, will use the experience and potential of leading Chinese
companies to intensify liquid hydrocarbon production and geological
exploration as well. In exchange for its investments, Beijing will gain
access to new oil resources in the Caspian a key source of energy imports
for China.

- Kazakhstan Invites Onshore Bids

By Maria Yakovleva

In early June the Ministry of Energy and Mineral Resources of Kazakhstan
(MEMR) announced open bidding for subsoil rights at 31 onshore hydrocarbon
blocks. Most of these blocks are located in the western part of Kazakhstan,
the area richest in hydrocarbons in the republic. Blocks are offered for
either exploration or a combination of exploration and production.

- Impact of Ahmadinejad Victory on Inteernational Oil and Gas Investment in
Iran

** LEADING THE NEWS **

- Ukraine Overcomes Conflict with Turkmmenistan, But Not with Gazprom. . .
- ExxonMobil Ready to Pay $30 Million tto Quite Offshore Nakhichevan. . .
- Indian Companies Expand Presence in CCaspian Region. . .
- TNK-BP Exports through Caspian Pipeliine Consortium. . .
- Tub-Karagan: Unsuccessful Drilling Beeing Kepth Secret. . .

** GOVERNMENT & ECONOMY NEWS **

Politics:

- Azerbaijan: UN appeal threat looms onn Ukrainian-Turkmen natural gas deal.
- Iran: Ahmadinejad says he will favor local oil companies.
- Turkmenistan: Niyazov fires head of TTurkmennebitgaz.

Finance:

- Armenia: ARG increases earnings on riising natural gas consumption.
- SOFAR has $1.6 billion.

Trade:

- Iran: 20 percent increase demanded foor additional LNG to India.
- Iran: Russian oil swaps proposed.
> - Kazakhstan: Energy Minister targets 1130 million tons of crude export in
ten years.
- . . .while Caspian output expected too double.

** COMPANIES & PROJECTS NEWS **

Upstream:

- Evraz Group withdraws from acquisitioon plan.
- Iran: Proposal to give a North Pars bblock to Indian companies for
development.
- Kazakhstan: May exercise priority rigght on PetroKazakhstan.
- ÷while regional court decision seizess PetroKazakhstan Turgai holding.

Drilling:

- Azerbaijan: AIOC launches fifth pilott well in Central Azeri field.
- . . .and begins exports from Batumi.<
- Azerbaijan:  SOCAR to request a second D-222 well from LUKOIL.
- Iran: Jufeyr, part of an offer to OVLL, may be a depleted field.
- Iran: South Pars 17 and 18 contracts signed .
- Iran: CNPC and PTTEP are awarded liceenses.
- Kazakhstan: KMG production to 100 milllion tons by 2010.
- . . .as current production levels inccrease.
- Turkmenistan: Development increasing in the Amu Darya River area.
- Turkmenistan: First Unguz Garagum deeep well completed.

Downstream:

- Iran: Costain and ACS win gas refinerry construction contract
- Turkmenistan: Turkmenneftegaz reportss increased liquefied gas production.
- Turkmenistan: LUKOIL considering propposal to upgrade Seidi.

** TRANSPORT & INFRASTRUCTURE NEWS **

Pipelines:

- Iraq: Agreement reached on Iraqi-Irannian oil pipeline.
- Kazakhstan: May export up to 20 milliion tons a year on BTC, expand
pipelines.
- Kazakhstan: CNPC and KMG to expand Keenkiyak-Atyrau pipeline.
- Kazakhstan: CNPC completes Zhanzahol--Kenkiyak pipeline.
- Kazakhstan: CPC raise tariffs.
- Uzbekistan: Zeromax begins constructiion of Gazli-Sarymai.

Shipping:

- Azerbaijan: Kaspar to transport Chevrron crude to Baku.
- Azerbaijan: Kaspar increases transporrt volume.
- Iran: Daewoo contract latest in NITC fleet upgrades.
- Kazakhstan: TCO to increase shipmentss of crude through Ukraine.

** PRODUCTION/EXPORT DATA **

- Oil and Gas Production and Exports inn Caspian Region - April 2005


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Friday, August 19, 2006