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"Rosneft" prepares for the geological survey at Kurmangazy field

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13:01 26.03.2003
text: "Kazakhstan Today"
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NC "Rosneft" OJSC is preparing for the geological survey works at Kurmangazy oil & gas structure on the Caspian Sea shelf, KZ-today correspondent has been advised in the press-service of NC "Rosneft" OJSC.

Sergey Bogdanchikov, president of NC "Rosneft" OJSC declared that currently in Astrakhan a re-equipment of a crane ship "Ispolin" into a drilling one was taking place. Besides, "Lukoil" company can provide "Rosneft" with its drilling platform "Astra" for the exploration drilling at Kurmangazy.

According to S.Bogdanchikov, "Rosneft" is a leader in this project, intensifying and initiating many issues of its realisation. As per the business plan, it is planned to drill two exploration wells at Kurmangazy structure this summer. The total oil reserves at a licensed area are estimated as 240 million tons. At the first stage it is planned to produce 100 thousand tons of oil per annum and in 6-7 years - to increase the volume of oil production to 10 million tons per annum. The project is designed for 30 years, the payback period is 7-10 years. Preliminarily, at the stage of exploration works, it is planned to invest $100-120 million. The total cost of the project will make around $1.5 billion.

As it was reported earlier, on August 13, 2002, "Rosneft" and "KazMunaiGas" signed a Memorandum on mutual understanding, fixing the main investors proposals on the parameters of cooperation within the project. In particular, among the starting points for negotiations with the government of Kazakhstan, the field development on a production sharing basis and an establishment of a consortium of "Rosneft" and "KazMunaiGas"are suggested.

The parties signed an "Agreement on the Principles of "Kurmangazy" Project Joint Realisation", which will become a basic document for the conclusion of "Joint Operating Agreement" (JOA). JOA, in its turn, must define all aspects of relations between the companies directly during the project realisation.

In Kazakhstan "Rosneft" also possesses 50% of the share in JV Adai Petroleum Company, carrying out an exploration on Adai block in Atyrau oblast (the remaining 50% are owned by an American "First International Oil Corporation"). Last year three exploration wells were drilled here and currently the fourth one is being drilled.