KazMunaiGas acquires 100 per cent shareholding of N Block B.V.

Kazakhstan, Astana, 30 Jan. / Trend D. Mukhtarov /

Kazakhstan's national oil and gas company KazMunaiGas acquired a 100 per cent stake in the N Block B.V., the company's press service reported on Wednesday.

'On January 25, 2013, the national company KazMunaiGas JSC and Conoco Phillips Petroleum Holdings BV closed a deal on a full acquisition of the N Block B.V. Company', the statement said.

As a result of this transaction, KazMunaiGas is the owner of 75.5 per cent of the rights for subsoil use in project N and has a 75.5 per cent stake in the N Operating Company. According to the signed contract for the use of mineral resources under the N project, its participants are KazMunaiGas with a share of 75.5 per cent and MDK (Oil and Gas N Block Kazakhstan) GmbH with 24.5 per cent.

'Increase of participation of KazMunaiGas in the N project demonstrates systematic steps to strengthen the role of the national company in offshore exploration projects in the Kazakh sector of the Caspian Sea', a press release said.

As reported by the national company, the N is implemented in accordance with the Production Sharing Agreement № 2546 dated December 29, 2007, converted on 29 May 2009 into the contract for exploration and production of hydrocarbons in the N section and its supplements. Under the structure of Rakushechnoe-sea, the transition to the stage of evaluation work has been made. The Ministry of Oil and Gas of Kazakhstan has been notified of the potential detection of hydrocarbons as a result of exploration works on Nursultan.

The N Operating Company was established for the implementation of the N project where KazMunaiGas participates with a 5.5 per cent interest and MDK (Oil & Gas N Block Kazakhstan) GmbH with 24.5 per cent.

KazMunaiGas is Kazakhstan's national operator for exploration, production, processing and transportation. All the shares of KazMunaiGas JSC NC are owned by the National Welfare Fund Samruk-Kazyna JSC.

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