Chevron, Tatneft In Talks Over Bitumen Production

MOSCOW, April 1, 2008 (Dow Jones Newswires)

U.S. oil major Chevron and OAO Tatneft, Russia's sixth-largest oil producer by volume, are in talks on developing heavy-oil projects in Russia's Tatarstan region, the two companies said Tuesday.

In September Tatneft choose Royal Dutch Shell PLC over Chevron by signing a strategic partnership agreement with Royal Dutch Shell on the development of heavy-oil fields in the Tatarstan region.

Heavy oil reserves -- or bitumen, a mixture of sand or clay, water and extremely heavy crude oil -- in Tatarstan are estimated at 7 billion metric tons. Analysts estimate there are up to 450 identified bituminous deposits in the republic. A third of them are in areas where Tatneft already operates. Many of the deposits are shallow, located 80 meters to 200 meters beneath the surface.

MOSCOW, April 1, 2008 (Dow Jones Newswires)