Shemen Oil and Gas Resources oil exploration company, a big packet of shares of which is owned by Georgian native Avraam Nanikashvili, has resumed works on Yam 3 section, which was suspended a month ago. The Azerbaijani company, which is in charge of drilling, needed assistance of the US experts, reported Israeli portal IzRus.
On May 18, 2013 Shemen Oil & Gas Resources announced resumption of drilling on a shallow section of Yam 3, 15 km west of Ashdod. The company has suspended exploration works about a month ago, because gas pressure in the well was 30% above the estimated one.
According to Globes, Caspian Drilling Company (CDC), which is owned by State Oil Company of Azerbaijan (SOCAR), needed help. Shemen administration has requested the US Wild Well Control, the company managing crisis situations on offshore and onshore oil and gas fields, to provide assistance. Because of the unexpected delay, the drilling costs increased by almost $22 million. Shemen plans to cover the costs at the expense of insurance.
During last year the budget of exploration works on Yam section increased by 50%, reported Globes. The partners of the consortium, which includes CDC (10%) and Shemen (79.2%), have agreed to increase the allocations.
Israeli company plans to invest $111 million, but till now it has invested only $73 million. In order to cover the difference Shemen is going to announce mobilization of capital of its shareholders once again. Avraam Nanikashvili, holder of 12.55% shares, together with his long-time partner Jackie Ben-Zaken, and Bonstar company have committed themselves to transfer about $4 million till the end of this months.
Israel's Financial Levers company has the biggest holder of Shemen shares till now (12.88%) and Nanikashvili is on the second biggest shareholder.
IzRus portal reported that the oil potential of the section was estimated at 270 million barrels, while gas one - 127 billion cub.m.
CDC company has started exploration drilling on the contract area in early December 2012.-0-
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