Astana, Kazakhstan, Jan.9
By Daniyar Mukhtarov - Trend:
Drilling of the first appraisal well in the Kazakh part of the Caspian Sea shelf within the 'N' project started in December 2014, Kazakhstan's KazMunaiGas (KMG) national company told Trend.
KMG said that the drilling of the first appraisal well has started at the Rakushechnoye-sea structure at a depth of 1,600 meters.
'N' block is among the promising projects of KMG in the Kazakh sector of the Caspian Sea. To date, a contract for the subsoil use has been signed for the 'N' project.
Moreover, the company said that contracts have been signed on such projects as 'Zhemchuzhina' (Pearl), 'Zhambyl' and 'Satpayev'.
"Geological exploration work is underway within the mentioned projects," KMG said. "Preparatory work was carried out within the 'Satpayev' project to drill exploratory wells; an exploratory well was drilled at Zhetysu structure within 'Zhambyl' project and the oil-and-gas-bearing capacity of the target structures was approved."
'N' bock is located in the Caspian Sea in 30 kilometers South-West from the Aktau city. It covers an area of nearly 8,100 square kilometers. The project's operator will be a limited liability partnership (LLP) that will be owned by all participants of the project in proportion to their shares in the subsoil use agreement.
Earlier, KazMunaiGas JSC national company owned 51 percent of share in the subsoil use agreement and the remaining share (49 percent) was equally owned by ConocoPhillips and Mubadala companies.
KMG completed the deal on purchasing 100 percent of share of the 'N Block B.V.' company from ConocoPhillips for $32.5 million on Jan.25, 2013.
As a result of implementation of this deal, KMG owned 75.5 percent of the right for subsoil use in 'N' project and 75.5-percent share in the 'N Operating Company' LLP.
Under the contract for subsoil use within 'N' project, the project participants are KMG with 75.5-percent share and MDK (Oil and Gas N Block Kazakhstan) GmbH - 24.5 percent.
Increasing of KMG's share in 'N' project shows systematic steps to strengthen the national company's role in offshore geological exploration projects in Kazakh sector of the Caspian Sea.
Edited by SI