KazMunaiGas buys N Block B.V. stake from ConocoPhillips 31 января 2013, 20:55
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Map of oil and gas project N. Photo courtesy of wikimedia.org
Kazakhstan national oil and gas company KazMunaiGas now owns 100-percent in N Block B.V., Tengrinews.kz reports citing the press-service of KazMunaiGas National Company. “On January 25 KazMunaiGas National Company and ConocoPhillips Petroleum Holdings B.V. completed the deal on procurement of 100 percent in N Block B.V. stock by KazMunaiGas. As a results of this deal KazMunaiGas became the owner of 75.5 percent of subsoil use rights in N project and 75.5 percent in N Operating Company,” the press-service writes. The cost of the deal has not been disclosed. KazMunaiGas used to hold 51% in N Operating Company and now procured another 24.5% stake in the company that develops the N offshore oil block from United State's ConocoPhillips. Abu Dhabi state investment company Mubadala represented by MDK (Oil & Gas N Block Kazakhstan) GmbH holds the remaining 24.5 percent of N Operating Company and its subsoil use rights. This new increase of KazMunaiGas’ stake in the Project N continues the company's gradual progress towards a greater role in the offshore geological exploration projects in Kazakhstan's sector of the Caspian Sea. Project N is implemented in line with the Product Sharing Agreement No.2546 dated December 29, 2007 and transformed into the Contract for Hydrocarbons Exploration and Production on N block dated May 29, 2009. N Operating Company was established for implementation of Project N. The project agreement allowing N Operating Company joint venture exploration and development of N Block was signed in June 2009. The first exploration well was drilled in 2010 on the Rakushechnoe More prospect. The second exploration well was drilled in 2012 on the Nursultan prospect. A notification of potential hydrocarbons discovery was sent to Kazakhstan Oil and Gas Ministry after geological exploration works on Nursultan prospect. The N block is located in the Caspian Sea 30 kilometers south of Aktau. The block's reserves are estimated at 270 million tonnes of oil and commercial production at Nursultan field is expected to start in 2016.