Kazmunaygas, Conocophillips and Mubadala announce signing of project agreements for exploration11 June 2009
ConocoPhillips [NYSE: COP], JSC National Company KazMunayGas (KMG) and Mubadala Development Company PJSC (Mubadala), through its business unit Mubadala Oil & Gas, today announced that they have signed project agreements allowing the joint exploration and development of the Nursultan Block (”N” Block) located in offshore Kazakhstan. KMG as majority owner will hold a 51 percent interest in the subsoil use contract and the remaining 49 percent will be shared equally between ConocoPhillips and Mubadala. The project will be operated by a Kazakh LLP, which will be jointly owned by the participants in proportion to their equity.
“The rise of our cooperation with ConocoPhillips and Mubadala to a new level indicates foreign investors’ great interest in developing Kazakhstan’s offshore fields in the Caspian and re-affirms the potential of our country’s oil and gas sector. This project will enable us to use new technology and international expertise in developing offshore oil and gas resources of Kazakhstan”, said Kairgeldy Kabyldin, president, KazMunayGas.
“ConocoPhillips is honored to participate in this world-class exploration project in Kazakhstan and we look forward to working with KazMunayGas and Mubadala to develop the oil and gas resources in “N” Block,” said Jim Mulva, chairman and chief executive officer, ConocoPhillips. “This project expands our global portfolio of high-quality projects and enables us to provide a steady flow of energy resources to consumers around the world.”
“We are pleased to partner with KazMunayGas and ConocoPhillips,” said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company. “The establishment of mutually beneficial partnerships remains a fundamental element of Mubadala’s approach to business. Signing this agreement is another important step in realizing our strategy to become an active participant in the international upstream petroleum sector.”
The “N” Block is located 30 kilometers south-southwest offshore Aktau, Kazakhstan in the Caspian Sea. The block covers approximately 8,100 square kilometers and according to government estimates is considered highly prospective for both oil and gas.