Saudi Nimir to spend $ 103.5 million on Kazakhstan's North Buzachi oilfield

June 19, 1997 Saudi Arabian private firm Nimir Petroleum Co Ltd has signed a 25-year "production and development" contract to bring onstream Kazakhstan's North Buzachi oilfield.
Nimir plans to spend $ 103.5 million over five years to exploit the field which has 450 million barrels of recoverable oil and 1.5 billion barrels in place, the source said.
The contract, which came into effect on May 29, sees Nimir spending $ 30 million in the first three years on a pilot development project at the field before deciding to exercise an option to spend a further $ 73.5 million in years four and five.
The Kazakhstan government will not receive any crude from the field as it is not a production sharing agreement contract but Nimir Petroleum Company Buzachi Ltd will pay royalties and other taxes to Almaty.