Hungarian MOL receives positive results from West Kazakhstan exploration

Oil&Gas Materials 4 December 2013 10:38 (UTC +04:00)

Astana, Kazakhstan, Dec. 4

By Daniyar Mukhtarov - Trend:

Whilst carrying out exploratory work at the Fedorovsky block in the West Kazakhstan region, the Hungarian MOL Oil and Gas Company has received positive results, MOL Executive Director Sandor Fashimon told Trend at the third session of the Kazakh-Hungarian Business Council in Astana on Tuesday.

"While carrying out the exploration work at the Fedorovsky block, the availability of oil and gas condensate reserves was confirmed," he said. "A trial test will now be conducted."

"Expected reserves are estimated at 200 million barrels of oil and gas condensate," he said.

He recalled that MOL and KMG are exploring two blocks in the West Kazakhstan region.

"Regarding the North Karpovsky second block, it is too early to talk about anything as the exploratory operations are underway," he added.

"The company is interested in acquiring new assets for investigative operations in Kazakhstan," he said. "The company is negotiating with KazMunaiGas representatives.

KazMunaiGas Exploration Production (KMG EP, is a subsidiary of Kazakh national oil and gas company KazMunaiGas) completed the deal on selling a 49 per cent stake in the KS EP Investments BV company which owns North Karpovsky LLP, to the largest Hungarian oil and gas company MOL Hungarian Oil and Gas Plc in November 2012.

North Karpovsky LLP has the right for subsoil use upon an agreement on the oil, gas and condensate exploration at the North Karpovsky block in the West Kazakhstan region.

The estimated recoverable hydrocarbon reserves of the North Karpovsky block reached 240 million barrels of oil.

It was previously stressed that as a result of the agreement between KMG EP and MOL, a joint venture will be established for further exploratory work at the North Karpovsky block. The deal was approved during at meeting of the KMG EP board of directors on June 26, 2010.

The North Karpovsky block is located 40 kilometres north-west of the City of Uralsk, near the Fedorovsky block and other fields. The total area of the contractual territory is 1670 square kilometres. The results of the previous geological exploration work, as well as seismic and borehole data prove the existence of hydrocarbons in this area.

The deal will provide KMG EP with an opportunity to split geological risks and financial obligations with MOL under this licence.

A significant gas condensate field was opened in 2008 on the Fedorovsky block where MOL is the consortium operator.

KMG EP is among the three leaders in terms of oil production in Kazakhstan. The company's production volume including shares in the Kazgermunai joint venture, CCEL (Karazhanbasmunai) and PetroKazakhstan Inc, in 2011 was 12.3 million tons (250,000 barrels per day). The volume of KMG EP's proven and expected reserves as of late 2011 hit 226 million tons (1.7 billion barrels) and 2.1 billion barrels taking into account the shares in joint ventures.