(Source: Datamonitor)
French integrated oil and gas company Total has signed a heads of agreement establishing the principles of a partnership with KazMunaiGas for the development of the Khvalynskoye field in the Caspian Sea.
Khvalynskoye is a conventional gas condensate field located in water depths of 25m which will be developed by Lukoil, the operator of the field, with 50% interest. The gas produced from this field will be transported to Russia.
Under the terms of the heads of agreement, Total and GDF Suez will acquire a participation of 25% interest (Total with 17% interest and GDF Suez with 8% interest) from the initial 50% stake held by KazMunaiGas.
Yves-Louis Darricarrere, president of exploration and production at Total, said: "This agreement provides the opportunity for Total to further strengthen its ties with KazMunaiGaz, with whom the group is already a partner on the Kashagan project in Kazakhstan.
"Total will bring to the Khvalynskoye's partners the company's know-how in developing offshore projects in order to successfully develop the field."
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