Kazakhstan, Astana, Aug. 14 / Trend D.Mukhtarov /
Kazakh KazMunaiGas Exploration Production has increased spending on exploration and evaluation by $17 million in the first half of 2013 compared to the same period of last year, according to the company's consolidated interim financial statements.
Exploration expenses amounted to $46million in the first six months of 2013 compared to $29million in the same period of 2012, the report says.
The Company recognized dry well expenses in the amount of $40million in the first quarter of 2013 related to the exploratory well drilled on the White Bear prospect in the North Sea.
The first well drilled by KMG EP in the White Bear area in the North Sea was dry.
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 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.
KMG EP is among the top three oil producers in Kazakhstan. The company's production volume, including shares in companies JV Kazgermunai LLP, CCEL (Karazhanbasmunai JSC) and PetroKazakhstan Inc., amounted to 12.2 million tons (247,000 bpd) in 2012. As of late 2011, proved and probable reserves of KMG EP amounted to 226 million tons (1.7 billion bbl), and about 2.1 billion barrels, including shares in joint ventures.