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KazMunaiGas to continue increasing its shares in Kazakh oil and gas projects

Oil&Gas Materials 31 January 2013 16:57
Kazakh National oil and gas company KazMunaiGas will continue increasing its shares in Kazakh oil and gas projects, Director of Due Diligence Department of ‘2K Audit - Business Consulting / Morison International’ Alexander Shtok believes.

Azerbaijan, Baku, Jan. 31 / Trend E. Kosolapova/

Kazakh National oil and gas company KazMunaiGas will continue increasing its shares in Kazakh oil and gas projects, Director of Due Diligence Department of '2K Audit - Business Consulting / Morison International' Alexandr Shtok believes.

"As for the KazMunaiGas's future strategy, the company will evidently continue increasing its shares in the Kazakh oil and gas projects," Shtok told Trend via e-mail on Thursday.

In particular, the expert does not rule out purchasing of ConocoPhillips' share in Kashagan by KazMunaiGas.

On Jan. 30 KazMunaiGas announced that it had completed a deal on acquisition of ConocoPhillips' 24.5 percent share in N project. As a result of this transaction, KazMunaiGas becomes an owner of 75.5 percent in the project.

According to Shtok, ConocoPhillips sold its share in N project to realize its strategy on debt burden reducing. ConocoPhillips sells all its Kazakh assets within this strategy.

"KazMunaiGas, in turn, having the priority right to purchase this share, implements its strategy to strengthen its presence in the main oil and gas assets in Kazakhstan," the expert said.

According to Shtok, increasing KazMunaiGas' share in N project development will not entail great changes in the project development.

"KazMunaiGas previously also had a controlling stake in N project [51 percent], so great changes are unlikely to occur in the project," Shtok said.

'N' block is located in the Caspian Sea, 30 kilometers south-southwest of the city of Aktau. The area is about 8,100 square kilometers. The first exploration well (R-1) was drilled in the Rakushechnoye-Sea structure. The first confirmation of the presence of hydrocarbon resources was obtained. The exploration work is conducted in full compliance with the working program. The participants of the project expect them to continue successfully. According to the state bodies' estimations, the site is highly prospective for oil and gas.

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