Oil Gas News
January 99-2000
November 2003
April 01 2005
Table 1
Oil Production Joint Ventures in Kazakhstan

KazMunaiGaz purchase








Name Foreign Partners Reserves (proved + possible) Investment Status
The North Caspian PSA covers almost 1.4 million gross acres.  Eni (Operator - 16.67 percent), ExxonMobil (16.67 percent), BG (16.67 percent), Inpex (8.33 percent), Phillips (8.33 percent), Shell (16.67 percent), and Total (16.67 percent). Upon completion of the sale of BG International's interest in the NCPSA, ExxonMobil's interest will become 20.37 percent.


Aktobe Preussag 
Aktobemunaigaz
Preussag Gmbh (Germany) 50.0%     Exploring near Zharkamys
Anako  Nafta a.s. (Slovakia)     Producing 1,390 bbl/d 8/98
Arman  Oryx (US) 50.0%. Oryx merged with Kerr-McGee     Producing 4,750 bbl/d 8/98; 5 new wells next 2-3 years
CNPC/Uzenmunaigaz  CNPC (China) 50% Est. oil reserves 2.5 billion barrels $1 billion 1st 5 years Developing Uzen & Aktyubinsk fields
Demunai  Caesar Oil (US) 50.0%     Developing fields Aktobe Oblast
Embavedoil 
Onshore
MOL Rt, Vegyepszer (Hungary) combined 49.0%     Producing 220 bbl/d 8/98; Vegyepszer may pull out
Gyural  Urals Trading (Cyprus)     Producing 365 bbl/d 8/98
Hurricane-Kumkol  Hurricane (Canada)      Producing 41,000 bbl/d 8/98
Karakudukmunai  American-Turkish Central Asia Guernsey 50.0% (JV with Chaparral/Turkish investors) Est. oil reserves over 70 million barrels    Producing 220 bbl/d 8/98
KazakhOil-Telf  Telf AG (Switzerland)     Producing 580 bbl/d 8/98
Kazgermunai  Veba Oel (Germany) 25.0%; EEG (Germany) 17.5%; IFC 7.5% Est. oil reserves 100 million barrels $300 million Producing 1,170 bbl/d 8/98
Kazpromstavba  Prumsylove Stavitelstvi (Czech Republic) 31.0%     Developing Kara-Arna field
Kazturkmunai  TPAO (Turkey) 49.0%     Producing 1,100 bbl/d 8/98
Kumkol-Lukoil  Lukoil (Russia) Est. oil reserves over 600 million barrels   Producing 17,010 bbl/d 8/98
Kuatamlonmunai  Amlon (UK) 50.0%     Developing Bektas-Konys field
Matin  FIOC     Producing 3,360 bbl/d 8/98
Steppe Leopard  Snow Leopard Resources (Canada) 45%; Snow Leopard International (5%) Est. oil reserves 100 million barrels   Developing Teplovsko-Tokareyev fields
Svetlandoil        Producing 290 bbl/d 8/98
Tasbulat Oil  Gendor (Cyprus)     Developing Tasbulat field
Tenge  Anglo-Dutch (US) Est. oil reserves 500 million barrels; 1 trillion cubic feet gas   Developing Tenge field
TengizChevroil (TCO)  Chevron (US) 45%; Mobil (US), 25%; LukArko (Russia), 5% ExxonMobil affiliates have a 25 % interest  Est. oil reserves 6-9 billion barrels $20 billion over 40 years Producing 182,000 bbl/d 8/98
Turan  Vega-D Geophysical (Canada) 25%; Technoeko (Canada) 25%     Developing Kzylkiya, Maybulak, Aryskum fields
Zhetbay-Quest  Quest (UK), Mannai (Qatar)      Well rehab at Zhetbay field
KazMunaiGaz purchase
March 31, 2005

According to the Government of Kazakhstan, yesterday the National Oil and Gas Company, KazMunaiGaz, and Agip KCO inked the agreement on the KazMunaiGaz purchase of 50% of BG's share in the North Caspian Project. The agreement was signed by the President of KazMunaiGaz, Uzakbai Karabalin. The Ministry of Energy announced in a written statement on Tuesday that "The funds for this deal will most likely be covered loans."

The entire BG stake (16.67%) was purchased by the Agip KCO consortium for US$ 1.8 billion (before taxes). The consortium had agreed on the sale of half of this stake to Kazakhstan through the state-owned KazMunaiGaz.

About the North Caspian Project:
BG had announced that it is willing to sell its 16.67% share in the Agip KCO consortium which operates a number of oil fields in Kazakhstan's sector of North Caspian shelf, the largest of which is the Kashagan field.

Together with Kazakhstan's government, other members of the consortium have now acquired BG's shares. Other members of the consortium are ENI (operator of the project), Total, ExxonMobil, Shell (each with a 16.67% share), Inpex and ConocoPhillips (with 8.33% each).

Agip KCO was created after corresponding Production Share Agreement was signed in 1997 for a 40-year term.

The consortium is planning to start actual production in 2007-2008.

According to Agip KCO's statements recoverable oil resources of Kashagan fields are at least 7 to 9 billion barrels. General geologic resources contained in the reservoir are estimated at 38 billion barrels.
Sat, 15 Jan 2000 15:18:30 -0500 
From: " Timur Umerov " <Tumerov@worldnet.att.net> To: " Charlie Bartholomew " <kryopak@uswest.net>

"
Aktobemunaigaz": the situation is complicated not " on vicinity " behavior of the Chinese.
" The Kazakhstan truth " on January 12, 2000.

As informs agency of Interfaks - Kazakhstan, the management of republic is seriously concerned with a situation developing in oil-extracting joint-stock company of Aktobemunaigaz, 60 % of which shares belong China National Petroleum Corporation (CNPC - Chinese national petroleum corporation).

As the informed source in government, Ministry of foreign businesses of Kazakhstan has informed to agency, and also the order are given to the ambassador of republic of China Kuanyshu Sultanovu to finish up to the item of information of the appropriate government structures of Peoples REPUBLIC of CHINA on a situation in joint-stock company of Aktobemunaigaz, so that to both parties in common to develop measures on normalization of a situation at the Kazakhstan enterprise.

In Astana consider, has emphasized a source, that the situation in joint-stock company of Aktobemunaigaz, "is not worthy of the level of good-neighborhood, partnership" of the relations which have been usual between two countries.

Kazakhstan and PEOPLES REPUBLIC OF CHINA in 1997 have concluded the agreements on a total sum more than $ 9,5 billion in the field of production and transportation of petroleum. Within the framework of these agreements in 1998 were begun joint development and development largest in Kazakhstan of a petroleum craft of Uzen', and Aktyubinsk oil gas fields deposits. CNPC has 60 % of the shares of oil-extracting joint-stock company of Aktobemunaigaz for $ 325 million. Also has undertaken within 20 years to invest in development of the enterprise $ 4 billion.

Between that in April 1999, 2 thousand Kazakhstan experts were dismissed from joint-stock company of Aktobemunaigaz about removing from structure of the enterprise of management of petroleum works, transport and building management. Now, CNPC has redeemed more than 60 % of the shares of joint-stock company Aktobemunaigaz, the number of the workers at the enterprise made 9,6 thousand people. The Management joint-stock company then has promised oil worker establish them at the again created enterprises, and also up to new worker establish to pay to them the grants at a rate of 30 % from volume of wages. However promised grants until now are not paid.

In the beginning of December, 1999 in city Kandagash, the assembly of the former workers of the liquidated enterprises of joint-stock company of Aktobemunaigaz was held, on which the reference to address the President, government of Kazakhstan with the request to solve the arisen situation was accepted. About at the enterprise the reductions should not be made. 
In turn, the assistant of the general director of joint-stock company of Aktobemunaigaz" of Pej Tszjan'shen' in interview to the correspondent of agency of Interfax - Kazakhstan has reminded, that the contract about sale and purchase of the shares provided term - 12 months, during which at the enterprise the reductions should not be made. This term expired in September, 1998, he emphasized. " A Condition of the contract the investor did not break ", he concluded.

At the same time, agrees by the data, promulgate in middle of December at session of constant commissions of maslihata of the Aktyubinsk area, the investment plan for 1998 by the basic shareholder of joint-stock company of Aktobemunaigaz - CNPC - is executed on 85,4 %, and in 1999 instead of stipulated by the contract $ 117,4 million. The Chinese company invested in manufacture no more than $ 70 million. At the same time for 5 years CNPC has undertaken to invest in development of manufacture of joint-stock company of Aktobemunaigaz $ 485 million., was informed at session.

By commissions of maslihata the decision was accepted, it is recommended to them to a management joint-stock company of Aktobemunaigaz to refrain from reductions to decide questions workers of the device dismissed, and also to begin construction new gas operation Batyvajushchego factory.

As was informed earlier, CNPC in 1999 planned to ship in China 450 thousand tons of crude petroleum from the Aktyubinsk deposits. In 1998 of joint-stock company of Aktobemunaigaz has put in China 360 thousand tons of crude petroleum against first 1,7 thousand tons after the conclusions of the agreements in 1997. In 2000, it is supposed to increase export of petroleum in PEOPLES REPUBLIC OF CHINA up to more than 500 thousand tons.

The petroleum in China is delivered by rail. Now of Kazakhstan and China consider an opportunity of realization of the civil-engineering design of an oil pipeline from Western Kazakhstan in SUAR [Xinjiang Uyghur Autonomous Region] PEOPLES REPUBLIC OF CHINA. The project is estimated in $3-3,5 billion. The extent of the pipeline should make about 3 thousand-km at throughput not less than 20 million Tons per one year.

" The Kazakhstan truth " on January 12, 2000
 

 Table 2
Other Oil Projects in Kazakhstan
Name Foreign Partners Reserves (proved + possible) Investment Status
American International Petroleum Corporation (AIPC) - Exploration License  AIPC (US) 70.0%  Est. oil/gas reserves 3.8 billion barrels oil equivalent   Seismic work done - drilling Altai No. 1 test well
Caspian Pipeline Consortium (CPC) Russia 24%; Kazakhstan 19%; Chevron (US) 15%; LukArco (Russia/United States) 12.5%; Mobil (US) 7.5%; Rosneft-Shell (Russia-U.K./Netherlands) 7.5%; Oman 7%, BG (U.K.) 2%; Agip (Italy) 2%; Kazakhstan Pipeline Ventures (Kazakhstan) 1.75%; and Oryx (United States) 1.75% see update below    $2.3 billion Construction underway; 1st flows mid-2001. Ultimate capacity 1.34 million barrels/day 

Cpc'S Shareholders Include The Russian Government (24%), Kazakhstan (19%) And The Sultanate Of Oman (7%) As Well As Chevron Caspian Pipeline Consortium Company (15%), Lukarcobv (12.5%), Rosneft-Shell Caspian Ventures Limited (7.5%),Mobil Caspian Pipeline Company (7.5%), Agip International Nv(2%), Bg Overseas Holding Limited (2%), Kazakhstan Pipelineventures Llc (1.75%) And Oryx Caspian Pipeline Llc (1.75%).(Kazakhstan Newswire - Kazakhstan, October 24 2003)


Ertismunai 

Onshore (NE Kazakhstan) 

IPI (US) 50.0%; Kuat Holding (Kazakh) 50.0% Leah Industries has letter intent to buy IPI share Est. oil reserves 4.0 billion barrels     
Karachaganak PSA Agip (Italy) 32.5%; BG (UK) 32.5%; Texaco (US) 20.0%; Lukoil (Russia) 15% Est. oil reserves 2 billion barrels; est. gas reserves 28 trillion cubic feet $6 billion over 40 years Developing Karachaganak gas field
Karazhanbasmunai Nations Energy     Producing 10,300 bbl/d 8/98
OKIOC (Offshore Kazakhstan International Operating Company) PSA Signed November 1997  Agip (14.28%), BG (14.28%), BP/Statoil (14.28%), Mobil (14.28%), Royal Dutch/Shell (14.28%), Total (14.28%), Inpex (7.14%), Phillips (7.14%) Est. oil reserves 40 billion barrels   Drilling spring 1999; Production could begin 2004-2005
Mertvyi Kultuk PSA/ Ostrovnaya

 

Exxon (US) 50%; Oryx (US) 50%; Oryx merged with Kerr-McGee Est. oil reserves 150 million barrels   First exploratory well by a western company in the Kazakh portion of the Caspian sea. Ostrovnaya prospect spudded due to lack of infrastructure
Munai NPTs       Producing 440 bbl/d 8/98
Temir PSA Shell (UK/Netherlands) 60%; Veba Oil (Germany) 40% Est. oil reserves 300 million barrels $25 million Veba bought out Elf's share in 1995
Tulparmunai  Mobil (US) 25%; Shell (UK/Netherlands) 25%; Japan Petroleum (Japan) 12.5%; Sumitomoto (Japan) 12.5%     Exploration blocks 2 & 3 Aktobe oblast
Exploration/Field Concession Partex 50%; Union Texas (US) 37.5%; Oman Oil (Oman) 12.5%     Developing block in Mangistau Oblast
Exploration/Field Concession Amoco (US); TPAO (Turkey)     Developing block in Aktobe Oblast
Exploration/Field Concession Chinese Petroleum Corportion (Taiwan) Est. oil reserves 90 million barrels    
Exploration/Field Concession ONGC (India)     Concession Pavlodar Oblast
Exploration/Field Concession Repsol (Spain) 60%; Enterprise (UK) 40%     Concession Aktobe Oblast
Exploration/Field Concession JIT (Japan/Indonesia)     Exploration Aral region
Exploration/Field Concession Oman Oil, ARCO, Exxon      
Exploration/Field Concession JNOC (Japan) 50%   $3.9 billion over 30 years  
Exploration/Field Concession   Texaco (US) 65.0%, Nimir (Saudi Arabia) 35.0% Est. oil reserves 1.0-1.5 billion barrels   Development North Buzachi 
Field Rehablitation Seneca Resources (US)     Rehab 7 fields Atyrau oblast