Kazakhstan, Astana, June 12 / Trend K. Konyrova /
ConocoPhillips company (designation of shares at New York stock exchange: COP) and the state joint-stock company Mubadala development company (Mubadala) suggested best terms for developing of N block (Nursultan) onshore of the Caspian Sea, Kazakh minister of energy and mineral resources Sauat Mynbayev told Trend in Astana.
"Several companies, including Shell Company pretended for development of N block. Shell Company submitted detailed proposal. Why were Mubadala and ConocoPhillips chosen? They suggested the best terms. Negotiating team considered all proposals. It was commercial choice," Mynbayev said.
It is early to tell about cost of project and expected investments, minister said. "It is difficult to comment figures at this stage. All will depend on results of geological exploration. But matter deals with hundreds million dollars," Mynbayev said.
All geological exploration operations will be financed owing to Mubadala and ConocoPhillips, he said. National company KazMunayGaz JSC, ConocoPhillips Company and state joint-stock Mubadala Development Company signed a package of agreements on joint activity on exploration and development of Nursultan block (N block) in Astana on June 12.
Control shares on contract on mineral resources use (51 percent) will belong to KazMunayGas and the balance stake of 49 per cent will be owned equally by "ConocoPhillips and Mubadala.
Limited Liability Company founded in Kazakhstan will operate the project, which will be owned by all participants in the project in proportion to their shares of participation.
Nursultan block is situated 30 kilometers in the south of south-west coast of Aktau in the Caspian Sea. Its area hits 8,100 square kilometers. According to estimations of state agencies, this plot has high prospects of oil and gas. KazMunayGaz is Kazakh national operator on exploration, production, processing and transportation of hydrocarbon. It represents interests of Kazakhstan in oil and gas.
National welfare fund Samruk-Kazina owns 100 percent of shares of KazMunayGaz JSC.
Geologic reserves of structure are estimated in the amount of 360 million tons of oil but extracted reserves - 270 million tons. The first exploitation well is planned to drill in 2010. Commercial output is planned to launch in 2016.
ConocoPhillips is the international oil and gas company. It has enterprises and operates in many world countries.
Mubadala development company (Mubadala) is state joint stock company. The company's headquarter is situated in Abu-Dhabi. The company deals with development and realization of many commercial initiatives in different branches of economy both independently and interaction with leaing international companies.
The company's commercial strategy includes realization of long-term investment projects ensuring high indices of financial effectiveness. Mubadala oil and Gas Company is one of branches of Mubadala dealing with purchase, exploration and development of reserves in Middle East countries, North and West Africa, central and South-East Asia.
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