News 2011
#4 (70) September, 2011JSC KazMunayGas Exploration Production
JSC KazMunayGas Exploration Production (KMG EP) has completed a deal on acquisition from its parent company, the national holding KazMunayGas, a 100% subsoil use right within four contracts for exploration of hydrocarbon raw materials in Kazakhstan. As it is informed in KMG’s press-release, the talk is about Blocks Temir and O`a*resken (Aktyubinsk region), Karaton-Sarkamys (Atyrau region) and the territory adjoining to the fields Uzen and E^a`ramandybas (Mangistau region). The total cost of acquisition was $43.8 million. It includes
the price of four contracts worth $40 million and valuation adjustment due to expenditures incurred by KMG on financing the working program on Block Teresken prior to the deal completion in 2011 – $3.8 million. Financing was carried out on the account of KMG EP’s own means.
Earlier, this deal was approved by the board of directors of KMG EP and the council of directors of the national company. Also, all necessary permits of regulatory bodies were received. As it was informed, KMG EP and KazMunayGas reached an agreement on the purchase and sale of four mentioned blocks in April of this year. Geological resources of all blocks are estimated approximately at 1.5 billion barrels in oil equivalent. The term of the contracts on the area adjoining to the fields Uzen and Karamandybas and blocks Karaton-Sarkamys and O`a*mir is 6 years since 2010 with the right of prolongation up to 2019; and on O`a*resken block – 6 years since 2006 with the right of prolongation till 2015. Closeness of blocks Temir and O`a*resken to the assets of Kazakhoil Aktobe LLP and Kazakhturkmunai, of the territory adjoining to the fields Uzen and Karamandybas – to the zone of operation of Ozenmunaigas and of block Karaton-Sarkamys – to the area of Embamunaigas assumes the use of existing infrastructure of these enterprises and optimisation of capital and operational expenses.