KazMunaiGaz EP to explore new oil blocks

KazMunaiGaz EP has agreed with KazMunaiGaz National Oil Company to sign 4 contracts to explore hydrocarbons in Kazakhstan, Novosti Kazakhstan reports. According to the contract, KazMunaigaz EP is to purchase 4 oil blocks – Temir, Teresken, Karaton-Sarkamys and territories adjacent to Uzen and Karamandybys oil fields, the company’s statement reads. Temir and Teresken blocks are located in Aktyubinsk oblast. Karaton-Sarkamys block is located in Atyrau oblast, 100 km away from Kulsary oilfield. The four contacts are estimated at $ 40 million. The purchase will be financed out of the company’s own funds. Geological reserves of the four blocks are estimated at 1.5 billion barrels of oil equivalent. “These contracts are the next step towards increasing the company’s recourse base through purchase of new assets and expansion of geological exploration works. (…) The Company will keep on searching for promising assets to serve interests of shareholders” quoted the statement Askar Balzhanov, the company’s Director General, as saying. The deal is to be finalized in the Q2 2011.