JSC National Company KazMunayGas (KMG), ConocoPhillips (NYSE:COP) and
Mubadala Development Company PJSC (Mubadala) today announced that they
have signed a Memorandum of Understanding (MOU) to negotiate terms for
the exploration and development of the “N”
Block, located in offshore Kazakhstan, under a new subsoil use contract.
The parties will now have until Dec. 31, 2008 to negotiate the
definitive agreements for the assignment by KMG of a 49 percent interest
in the subsoil use contract to be shared equally between ConocoPhillips
and Mubadala. KMG will remain the majority partner in the venture.
"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.
"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,”
said Jim Mulva, chairman and chief executive officer, ConocoPhillips.
“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. “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.”
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
is considered highly prospective for both oil and gas.
The MOU was signed by Kabyldin, Mulva and Al Mubarak and was witnessed
by His Excellency Sayat Mynbayev, Minister of Energy and Natural
Resources of the Republic of Kazakhstan.
Notes to Editors:
JSC National Company “KazMunayGas”
(KMG) is a national oil and gas exploration, production, processing and
transportation operator representing the Government of Kazakhstan’s
interests in the country’s oil and gas
industry.
