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CANADIAN CORPORATION TRANSEURO ENERGY STARTS PREPARATION WORKS FOR SEARCH OF OIL AND GAS IN ARMENIA

YEREVAN, FEBRUARY 23. ARMINFO. A Canadian corporation Transeuro Energy (the former Indusmin Energy) has started preparation works for search of oil and gas in the so-called second licensed bloc embracing the territory of Armavir region, Armenia, says Head of the Department for Fuel and Energy Recourses, the Armenian Energy Ministry, Candidate of technical sciences Andranik Aghabalyan in his interview to ARMINFO.

He says that due to good weather conditions, the corporation will start field works to determine the place of the first well. Transeuro Energy has concentrated its efforts on the search of natural gas resources taking into account the infrastructures of industry in Armenia. He explains that Armenia is the only country in the territory of the former USSR that lacks oil-processing facilities, at the same time having a well-developed gas transport system. In this connection gas recovery for industrial purposes is more perspective than oil. During the first five years, the corporation pledges to invest in search of gas and oil in Armavir region at least $10.5 mln, Aghamalyan says. He adds that as to the second licensing bloc, Transeuro Energy has become a legal successor of the Armenian-American geological survey company having purchased its rights and obligations; continuation of the started work is in question.

It should be noted that the contract of the Armenian Government and the Armenian-American geological survey company on the second licensed bloc was signed yet on 27 January 1997 and came into effect 6 February 1997. Active field works were carried out within the first three years in Armavir. After the owner of the company Alen Polsen died in July 2000, the works were suspended and the company was just processing the received data and seeking for financial partners. In 2004 Canadian Indusmin Energy renamed into Transeuro Energy in the autumn of 2004 has become its legal successor. Later the company opened its office in Armenia.

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