Total Offers to Establish New Joint Operating Company

Oil&Gas Materials 15 September 2008 18:20 (UTC +04:00)

Kazakhstan, Astana, 15 September / Trend corr. K.Konirova / Kairgeldi Kabildin, the President of the National KazMunayGaz Open Joint Stock Company (OJSC) met with Arno Breyyak, the senior vice president of Total company for the Continental Europe and Central Asia in Astana, the National Company (NC) said.

"The meeting focused on prospects of future cooperation between companies within the framework of the North Caspian Project (NCP) and the project of the Kazakh Caspian Transportation System (KCTS)," the company said. This system will transport oil from Kazakhstan via the Caspian Sea for its further dispatch through the Baku-Tbilisi-Ceyhan oil pipeline.

The Total official sounded a proposal to form new joint operating company within the framework of realization of the North Caspian Project.

At present the Kazakh Government is examining the issue on operatorship of the project.

Total is a shareholder of the Production Sharing Agreement (PSA) on the northern Caspian, which was inked in 1997. In accordance with the PSA, the contract area comprises four oil fields, including Kashagan, Kalamkas, Aktoti and Kayran. The shareholders in the Northern Caspian project are as follows: Eni, Total, ExxonMobil, Royal Dutch/Shell (each - 18.52%), ConocoPhillips (9.26%), Inpex and NC KazMunayGaz OJSC (each - 8.33%).

NC KazMunayGaz OJSC is a national operator on exploration, production, development and transportation of hydrocarbon and represents the government's interests in oil and gas field of Kazakhstan. A total of 100% of shares of KazMunayGaz belongs to Samruk OJSC, the Kazakh holding on management with state assets.

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