OREANDA-NEWS. September 24, 2009. ITERA, a Russian gas company, and the Government Agency on Control and Usage of Hydrocarbon Resources under the President of Turkmenistan signed a Production Sharing Agreement in respect of the Caspian Sea block 21, reported the press-centre of ITERA.

ITERA shall commence work of block 21 with Turkmen organizations in 2010, - Igor Makarov, Chairman of ITERA Board of Directors, said. "We shall start in the beginning of the year. It’s our first marine project. Since we have no experience of the kind and so far have been developing inland fields only, we engaged Zarubezhneft (Overseas Oil), a partner with an extensive offshore drilling experience, – Igor Makarov stated at the Agreement execution.

In replying the question of production forecast, he noted: "Geology shows approximately 160 million tons of recoverable oil and 60 billion cu m of associated gas". "Annual production may be about 10 billion cu m of gas and 20 million tons of oil. These are tentative forecast, though", – Igor Makarov added. He pointed out that Zarubezhneft will hold a 51% participation, while ITERA’s share will be 49%. The Project may cost about US 1 billion.