Kazakhstan ropes in ConocoPhillips, Mubadala
Posted:06 October 2008
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Kazakhstan state-energy company KazMunayGas (KMG) have signed an agreement with US oil major ConocoPhillips and Abu Dhabi-owned investment arm Mubadala Development Company for the exploration and development of Nursultan or “N” Block in the Caspian Sea.
The “N” Block is located 30 km south southwest offshore Aktau, Kazakhstan in the Caspian Sea. The Block covers approximately 8,100 sq km and is considered highly prospective for both oil and gas.
Under the new subsoil use contract, Houston-based Conoco and Mubadala will share 49% of the venture, leaving KMG a majority stake, the national oil company said. The parties will now have until December 31 2008 to negotiate the definitive agreements.
“KazMunayGas looks forward to a speedy conclusion to the negotiation and a successful, long-term relationship with both ConocoPhillips and Mubadala. Cooperation with these companies would allow for the attraction of new technologies relating to the exploration and production of oil and gas on the Caspian shelf,” said Kairgeldy Kabyldin, President, KazMunayGas.
Jim Mulva, chairman and chief executive officer of ConocoPhillips said, “ConocoPhillips looks forward to establishing a major new exploration presence in Kazakhstan, building on our long-standing participation in the oil and gas sector here, and will be honored to participate with KazMunayGas and Mubadala in this world-class exploration project.”
“Mubadala is an active developer in the international energy sector, with a growing portfolio of first class assets in the upstream oil and gas sector, and this MOU marks another significant step forward for us," said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company.
The Block covers approximately 8,100 square kilometers and is considered highly prospective for both oil and gas.
“We are excited by the potential of this block and the opportunity it provides for us to bring our experience to bear, working together with trusted organizations like KazMunayGas and ConocoPhillips.”
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