News 2014
June 2014NCOC
The transition of the Kashagan project from development to production operations provides an opportunity to further integrate and consolidate operator and agent activities to position the venture for future NCSPSA resource development. To capitalize on this opportunity, the NCSPSA shareholders have agreed to work towards a progressive transition from the current operating model to a single consolidated joint-venture company.
The single consolidated joint-venture company will build on the foundations and strengths of NCOC and its development, production, and drilling agents. The new company will operate under a single corporate management system, which integrates existing processes and tools from venture entities. It is expected that the name of the single consolidated joint-venture company will be North Caspian Operating Company (NCOC).
The plan is to start integrating and consolidating the companies this year. Activities associated with establishing the single operating company will not affect the pipeline repair activities, preparations for the production restart, or completion of the remaining Phase 1 scope. The current operating model will continue under the existing management teams until changes are formally announced.
Most of the staff of the single operating company will be located in Atyrau. Personnel who interact with government officials will be based in Astana. No changes to the PSA and /or the NCSPSA ownership structure are envisioned as a result of the planned transition. Stephane de Mahieu, an ExxonMobil secondee, succeeded Pierre Offant in the role of NCOC Managing Director as of May 1, 2014.