News 2024

KMG

KMG Drilling & Services LLP (a subsidiary of KazMugajGaz) and Nabors Drilling International Ltd have established a joint venture company KMG Nabors Drilling Company for the drilling works at the Tengiz oilfield. The relevant documents were signed by the parties on April 21 in Astana, as informed by the correspondent of Interfax- Kazakhstan news agency.

The new Joint Venture will ensure the drilling operations at the Tengiz oilfield within the frameworks of ongoing work program, as well as the future growth project. The new JV explained that the KMG Nabors Drilling Company was created within the framework of the implementing Tengizchevroil, liabilities before the Government of the Republic of Kazakhstan, which are reflected in the relevant bilateral memorandum of understanding. 

"One of the components of the subsection (Memorandum-note by IF-K), which implies an increase in the participation of Kazakhstani partners was also establishment of a drilling joint venture, which now amounted to $ 500 million in monetary terms and it stipulates the operations for the future growth project from 5 to 7 years"-said Nurtas Shmanov, Deputy Chairman of the Board on service projects of the National Company KazMunayGas.

According to him, the JV shares are distributed as follows: 49% owned by KMG Drilling & Services and 51% by Nabors Drilling International Ltd. N.Shmanov added that the JV will work 50% to 50% within 3-4 years, after a certain period of joint operations. Under the agreements, Tengizchevroil will finance the expenditures for acquisition of new drilling rigs for the Joint Venture KMG Nabors Drilling Company. According to N.Shmanov, Tengizchevroil ensures an advance payment for the purchase of additional new units, "which are ordered already today and they will be produced and delivered to Tengiz by 2016”.

"KMG Drilling & Services"will provide its own rig, and two more rigs will be provided by Nabors Drilling International Ltd, and later each company will provide additional new rig,"-he explained. The Head Office of KMG Nabors Drilling Company LLP will be located in Aktau and it will allow to create up to 200 jobs for highly-qualified staff, where 90% of the company's personnel will be the citizens of Kazakhstan.