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KazMunaiGas Exploration Production announces expenses for write-off of dry wells in North Sea

Oil&Gas Materials 15 May 2013 20:17 (UTC +04:00)
KazMunaiGas JSC has announced its expenses in the amount of $41 million for the write-off of dry wells drilled in the area of White Bear in the North Sea, the company’s press service reported.

Kazakhstan, Astana, May 15 / Trend D.Mukhtarov /

KazMunaiGas Exploration Production has announced its expenses in the amount of $41 million for the write-off of dry wells drilled in the area of White Bear in the North Sea, the company's press service reported.

"KMG has announced its expenses for the write-off of dry wells, drilled on the White Bear prospect area in the North Sea, in the amount of 6.1 billion tenge ($41 million)," according to a press release by KMG EP, which contains data on the condensed consolidated interim financial statement for the three months (by March 31, 2013).

The report also states that the cost of exploration and evaluation in January-March 2013 amounted to 6.6 billion tenge ($44 million), compared with 1.3 billion tenge ($9 million) in the same period of 2012.

KMG EP, BG Group (UK), and Maersk Oil North Sea (Denmark) started drilling the first exploration well in the White Bear block in the spring of 2012. The project partners planned to drill only one exploration well in 2012. The further work program depended on the results of drilling the first well.

The White Bear license area is located on the area of 213 square kilometers with the water depth of approximately 90 meters. No wells were drilled within this license area until now and only a few structures mapped.

KMG EP received a 35-percent stake in the project in August 2010, signing a contract with BG Group for the block's joint exploration. To date, BG Group owns a 45 percent interest in the project, whereas Maersk - 20 percent (since late 2010). Under the current license, the exploration phase will be completed in 2015. The White Bear Block is the first official foreign project of KMG.

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