14 March 2013 | 14:20

Talks under way with new partners over Abai oil block

©RIA Novosti

Exit of foreign oil companies from Kazakhstan-based oilfield will be compensated with arrival of new ones, KazTag Agency reports, citing Kurmangazy Iskaziyev, Vice Chairman of the Board [responsible for geological exploration and prospective projects] at KazMunaiGas National O&G Company. “When it comes to the Caspian Abai oil block (…) Kazakhstan’s Caspian Sea sector is of great interest. There are two potential partners, and the negotiations are under way. The partnership conditions will be defined by the government”, Mr. Iskaziyev said. He reminded that the new partners would bear geological exploration-related expenses that would be compensated later on through the extracted oil. “Abai oil black is quite promising. Every partner company pursues its own business interests and tries to achieve certain indicators. Statoil is leaving the project, but new players are to join in”, he said, adding that “at the moment I can’t provide any further details on what companies are expected to join the project (…) As soon as we reach some definite decision, we will make a respective announcement”. Besides, Mr. Iskaziyev said that KazMunaigas might exercise its preemptive right to purchase stakes owned by outgoing foreign companies; however, it would be up to the government to decide. Earlier the country’s media reported that Norway’s Statoil was leaving the project following the 7 years of failing talks to start production. According to Newskaz.ru, back in 2006 KazMuaniGas announced that Statoil was planning to join the project to develop Abai block with estimated reserves of 387 million tons. Jun 30, 2005 the two companies signed the 1st MoU to cooperate at the oil block. March 16, 2011 the companies signed the major principles of cooperation at the block. Abai block is located at the depth of 8-10 meters 65 km away from the Caspian Sea shoreline.

Exit of foreign oil companies from Kazakhstan-based oilfield will be compensated with arrival of new ones, KazTag Agency reports, citing Kurmangazy Iskaziyev, Vice Chairman of the Board [responsible for geological exploration and prospective projects] at KazMunaiGas National O&G Company. “When it comes to the Caspian Abai oil block (…) Kazakhstan’s Caspian Sea sector is of great interest. There are two potential partners, and the negotiations are under way. The partnership conditions will be defined by the government”, Mr. Iskaziyev said. He reminded that the new partners would bear geological exploration-related expenses that would be compensated later on through the extracted oil. “Abai oil black is quite promising. Every partner company pursues its own business interests and tries to achieve certain indicators. Statoil is leaving the project, but new players are to join in”, he said, adding that “at the moment I can’t provide any further details on what companies are expected to join the project (…) As soon as we reach some definite decision, we will make a respective announcement”. Besides, Mr. Iskaziyev said that KazMunaigas might exercise its preemptive right to purchase stakes owned by outgoing foreign companies; however, it would be up to the government to decide. Earlier the country’s media reported that Norway’s Statoil was leaving the project following the 7 years of failing talks to start production. According to Newskaz.ru, back in 2006 KazMuaniGas announced that Statoil was planning to join the project to develop Abai block with estimated reserves of 387 million tons. Jun 30, 2005 the two companies signed the 1st MoU to cooperate at the oil block. March 16, 2011 the companies signed the major principles of cooperation at the block. Abai block is located at the depth of 8-10 meters 65 km away from the Caspian Sea shoreline.

Oil news Kazakhstan Kazakh Caspian Sea