NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

- NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

Wednesday, May 25, 2011
JSC KazMunaiGas Exploration Production

JSC NC KazMunaiGas (NC KMG) and JSC KMG EP (KMG EP) have signed a Memorandum of Understanding, providing KMG EP with access to the detailed geophysical, financial and economic data of a number of oil and gas projects, including those located in the Kazakhstan sector of the Caspian sea. The list of projects includes, in particular, the offshore blocks Zhambyl, Ustyurt, Zhenis, Godina, С-1, С-2 as well as an onshore block Urikhtau. By agreement between the two parties the list of oil and gas projects may be expanded.

On the basis of the provided data KMG EP will conduct a technical, economic and investment evaluation of the above-stated projects to consider the Company's participation in these projects, subject to negotiations with NC KMG and on the same commercial terms as other participants.

Kairgeldy Kabyldin, Chairman of the Management Board of NC KMG noted, "The engagement of the resources and experience of KMG EP in the joint development of the Caspian sea shelf along with the large international oil companies is an important step for the KazMunaiGas group of companies. Enhanced participation of the National Company KMG in the offshore projects corresponds to the strategic interests of the country in the oil and gas sector."

Askar Balzhanov, Chief Executive Officer of KMG EP said, "Signing of the Memorandum is an important step in implementation of our Strategy which envisages participation in the development of the Caspian sea shelf as a way to increase the Company's resource base and hydrocarbons production. KMG EP possesses the necessary technical and financial resources for carrying out offshore oil operations."

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KMG EP Pulls Out of Iraq Field Development Talks

KMG EP Pulls Out of Iraq Field Development Talks

Wednesday, May 11, 2011
Knight Ridder/Tribune Business News
by A.Maratov, Trend News Agency, Baku, Azerbaijan

The National Company KazMunaiGas Exploration Production (KMG EP ) has informed the Oil and Gas Ministry of Iraq and the company Korea Gas Corporation (KOGAS) of its withdrawal from participation in the Akkas Field Development project negotiations in Iraq, the company reported.

In October 2010 KMG EP, together with KOGAS (the "Consortium"), won a tender for development of Iraq's Akkas gas field. The Consortium has held negotiations with the Government of Iraq with the objective of signing a contract to develop the Akkas field. "Unfortunately, the talks have failed to resolve all issues which emerged at a late stage and it has not been possible to develop a consensus document that would fully meet the interests of all parties," the report reads.

KMG EP would like to stress that it still believes Iraq to be an attractive area for investment. The Company appreciates the work done on this project by its partners from the Government of Iraq and KOGAS and would like to thank them for their efforts and regrets that it has not been possible for KMG EP to proceed.

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates -- about 2.2bln barrels.

Copyright (c) 2011, Trend News Agency, Baku, Azerbaijan. Distributed by McClatchy-Tribune Information Services.

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