Perth, Aug 13, 2008 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) and its joint venture partners have awarded two contracts for the design and engineering of a gas processing plant and pipeline for the development of the Edirne gas fields in Western Turkey.
Australia's Uhde Shedden was awarded the contract for Front End and Detailed Design. Uhde have previously designed the gas processing plant for the Amity (now Zorlu) gas plant in Turkey's Thrace Basin, some 70 km from the Edirne Concession.
Boral, a Turkish company, was awarded the contract for Pipeline Design and Routing, plus additional consultancy work related to local permits and approvals.
Additionally, the Turkish Energy Market Regulatory Authority (EMRA) advised that the Joint Venture has fulfilled all of the requirements necessary to be granted a wholesale gas licence. This is a major milestone in getting full regulatory approval to produce gas into the national grid.
The Joint Venture will be the first to produce and sell onshore Turkish gas directly into the extensive "Botas" gas distribution network, which enables the JV to sell gas anywhere in Turkey for the best possible price, which will be at a discount to the Botas price.
The Botas gas price was recently raised to YTL519 per thousand cubic metres, which equates to about US$14.70/mcf.
The Joint Venture has made a total of 6 new gas field discoveries in the licence since the original permit was acquired by Otto in 2004. First gas sales from the field are expected mid 2009.
Partners in the Edirne Joint venture are Otto Energy (35%) and joint operators Incremental Petroleum (55%) and Petrako Energy (10%).
Please refer to the attached ASX announcement from Incremental Petroleum for more information.
Contact
Media / investor enquiries:
Jill Thomas
TEL: +61 8 6467 8803
thomas@ottoenergy.com
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