Kazakhstan, Astana, Feb. 7 / Trend D. Mukhtarov /
Production is planned to be launched at the Rakushechnoe-sea structure, block 'N' in the Kazakh part of the Caspian Sea in 2018-2019, KazMunaiGas national company said today.
'The operator has drilled two exploration wells on structures Rakushechnoe-sea and South Nursultan', the company said. 'Production is expected to be launched on the Rakushechnoe-sea structure in 2018-2019'.
According to the report, KMG plans to continue exploration operations to explore and evaluate hydrocarbons in the 'N' section.
'Besides the above-mentioned structures, there are several promising areas for further exploration: Alfarabi, Samal, Sary-Arka, East Nursultan and North Nursultan', the report says.
On January 25, 2013, KazMunaiGas JSC national company and Conoco Phillips Petroleum Holdings BV closed a deal on a full acquisition of the N Block B.V. Company.
As a result of this transaction, KazMunaiGas is the owner of 75.5 per cent of the rights for subsoil use in project N and has a 75.5 per cent stake in the N Operating Company.
According to the signed contract for the use of mineral resources under the N project, its participants are KazMunaiGas with a share of 75.5 per cent and MDK (Oil and Gas N Block Kazakhstan) GmbH with 24.5 per cent.
The increase of KazMunaiGas's share in the N project demonstrates systematic action to strengthen the role of the company in offshore exploration projects in the Kazakh sector of the Caspian Sea.
KazMunaiGas is Kazakhstan's national operator for exploration, production, processing and transportation. All the shares of KazMunaiGas are owned by the Sovereign Wealth Fund Samruk-Kazyna.
The N project is implemented in accordance with the Production Sharing Agreement No 2546 dated December 29, 2007, converted on May 29, 2009 into the contract for exploration and production of hydrocarbons in the N section and its supplements. Under the structure of Rakushechnoe-sea, the transition to the stage of evaluation work has been made. The Kazakh Ministry of Oil and Gas has been notified of potential revealing hydrocarbons as a result of exploration work on Nursultan.
The N Operating Company was established for the implementation of the N project whereby KazMunaiGas participates with a 75.5 per cent interest and MDK (Oil & Gas N Block Kazakhstan) GmbH has 24.5 per cent.