Kazakhstan wants to sell 25 % of Kurmangazy to Total

Feb 05, 2004 01:00 AM

Kazakhstan wants to sell 25 % of its 50 % share in the Kurmangazy oil field in the Kazakh sector of the Caspian Sea to France's Total, Prime Minister Danial Akhmetov told.
"We want the French Total company to be a strategic partner of Kazakhstan in Kurmangazy. We think the share of Total will reach 25 %. The price will be commercial," he said. "We will not just sell an interest. We will place many conditions and they will not be easy even for such a huge company as Total," he said.

Kazakhstan and Russia agreed on the joint development of the Kurmangazy field in spring 2002. A protocol to the agreement on the Caspian's division of May 13, 2002, sets the share of Kazakhstan's KazMunaiGaz in the Kurmangazy project at 50 % and gives 25 % to Russia's Rosneft.
The protocol assigns a 25 % option to Russia's ZarubezhNeft. A working group of the Kazakh government is holding negotiations with KazMunaiGaz and Rosneft on production sharing terms in the Kurmangazy project.

Kazakhstan estimates extractable oil reserves of Kurmangazy at 0.9-1 bn tons.
Preliminary information indicates that investments may reach nearly $ 10 bn.

Source: Interfax Information Services
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