Largest Kazakh Banks May Become Partners to Develop Oil-Bearing Fields in Caspian Shelf

Oil&Gas Materials 23 October 2008 18:50 (UTC +04:00)

Kazakhstan, Astana, 23 October / Trend , corr. K.Konirova /A range of largest Kazakh banks may become partners of local investors, who want to take part in developing of oil-bearing fields on the Caspian shelf, Sauat Minbayev, the Kazakh Energy and Mineral Resources Minister, told Trend .

"Any offshore operations are very capital-intensive and to speak about investments less than $100mln, and expect results in such a business is useless," the ministers said.

Local investors, rather, will become partners with largest Kazakh banks.

"The banks are TuralAlem, Kazkommerzbank and Alliance-banks," Minbayev said.

The Kazakh Government for the first time establishes consortium, which will unite local investors and Kazmunaygaz national company, to develop the Dead Kultuk sea part on the Caspian shelf.

"The establishment of the consortium of local investors and the Government on the Dead Kultuk project is not a spontaneous decision. The works had been launched 2 years and six months or three years before signing of the contract on the Dean Kultuk, when a group of local businessmen applied to the President with a request to permit them to take part in developing of the Caspian shelf," Minbayev said.

The Government was ordered to work out the issue. However, the process was delayed and needed to agree nuances with tax inspections, environment protection service and lawyers.

There are still small number of local investors in offshore, but the royalty use is on the sale and purchase regime.

"We have empty Tub Karagane and Attache wells. We need to drill other wells. Nevertheless, local investors are ready to risk," the minister said.

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