TengizServis, M-I SWACO Sign Constituent Contract to Set up KAZ M-I Joint Venture

Oil&Gas Materials 19 November 2008 15:23 (UTC +04:00)

Kazakhstan, Astana, November 19/ Trend , corr K. Konirova/ The ceremony of signing constituent contract of the joint Kazakh-American venture KAZ M-I took place in Astana on November 19.

"Creating this JV is the next important step to expand geography of our international cooperation in oil and gas sphere. This JV will first of allow to meet demand for drilling agents and processing of drilling wastes for various oil and gas operators carrying out operations both on land and sea. We understand the responsibility of working on sea. These responsibilities are meeting high ecological demands and security standards while developing fields," Kairgeldi Kabildin, president of KazMunayGaz, national company of Kazakhstan, said.

The joint venture will mainly focus on production and realization of drilling agents (on water, oil and synthetic basis), processing of drilling wastes, delivery of oil field reagents and pipeline feeding, delivery of instruments for mechanic cleansing of shaft of wells, etc.

Magzum Mirzagaliyev, director general of TengizServis said new JV will begin work from Kashagan.

"But we are not going to stick only to one project. We will begin from Kashagan and then shift to other offshore fields. JV will begin on January 1, 2009. The office of the company is located in Aktau," he said.

The founders of this JV are TengizServis (51%) and MI SWACO (49%).

TengizServias successfully carried out projects in Tukaragan bay such as Base for support Offshore Oil Operations, Filling Station of Vessels, and Ground for Utilization and Soil Disposal of Wastes. One of the key strategic directions of development of TengizServis is diversification of business, in other words, expanding variety of services in Kazakh market. As experience has showed this goal can be efficiently achieved by setting up JV with leading international companies with an large experience all over the world.

For over half a century, M-I SWACO has been dealing with development and introduction of formula of drilling agents and liquids for underground and capital repairs of wells and engineering services in the sphere of drilling oil and gas wells across the world. MI SWACO entered Kazakh market in 1993. So far, it has drilled over 4,000 wells. The office of the company in Kazakhstan has 350 employees, 93% of which account for Kazakh specialists.

KazMunayGaz national company is a national operator for exploration, production, processing and transport of hydrocarbon. The company is 100% owned by Samruk-Kazin National Welfare Fund.

TengizServis, subsidiary of KazMunayGaz, was founded on DECEMBER 26, 2003 to realize state program on the development of the Kazakh section of the Caspian Sea to develop littoral infrastructure while carrying out offshore operations in the Caspian Sea. KazMunayGaz share in TengizServis capital makes up 48.99%.

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