Astana, Kazakhstan, April 3
By Daniyar Mukhtarov - Trend:
Kazakhstan's KazMunaiGas Exploration and Production JSC (KMG EP) which is a part of KazMunaiGas group of companies, intends to withdraw from the White Bear project, Abat Nurseitov, head of KMG EP, said on April 2 at a press conference in Astana.
"We withdraw from this project, because our hopes and calculations were not justified, the well turned out to be "dry". The company which proposed this block has already left," Nurseitov said.
Currently, KMG EP is working out documents for the upcoming board of directors on withdrawing from the project, according to the company head.
Recall, KMG EP and BG Group signed an agreement on conducting joint exploration in the promising White Bear block in the British sector of the North Sea in August 2010.
KazMunaiGas Exploration and Production got some 35 percent share in BG license for this block. This was the first official project between KMG EP and BG Group under the agreement on cooperation in the sphere of hydrocarbon exploration signed in December 2008.
The financial risks of KMG EP's participation in this project, including the expenditures on drilling and other obligations under the project are estimated at approximately $25-30 million at the stage before the discovery of hydrocarbons.
The promising structure, White Bear is located near the productive blocks of BG, such as Everest and Armada, in the licensed territory, P1722. BG keeps the remaining shares and will continue the operational supervision on behalf of the partners.
Translated by L.Z.
Edited by C.N.