Acquisition of ConocoPhillips share in 'N Block B.V.' 'commercially attractive' deal for KMG
Kazakhstan's national oil and gas company KazMunaiGas (KMG) acquired shares of the 'N Block B.V.' Company for a sum much lower than the historical costs of ConocoPhilips, KazMunaiGas said in a statement commenting on the conditions of the deal.
"Acquisition of a 100-percent share of 'N Block B.V.' is a successful and commercially attractive deal for KMG," the company said.
As was reported earlier, Kazakh Oil and Gas Minister Sauat Mynbayev told journalists at a briefing in Astana last Monday that KazMunaiGas bought a share of American ConocoPhillips for $32.5 million.
"The cost of the deal was significantly lower than the historical costs that ConocoPhillips incurred within the project and the estimated market value of the asset," the report says.
On Jan 25, KazMunaiGas Exploration Production completed a deal acquiring a 24.5 per cent share of ConocoPhilips in project 'N'.
As a result, KMG became the owner of 75.5 per cent of the rights of subsoil use in the project.
Increasing the KMG share in the project demonstrates systematic steps to strengthen the role of the national company in offshore geological exploration projects in the Kazakh sector of the Caspian Sea.
KazMunaiGas is the Kazakh national operator for hydrocarbon exploration, production, processing and transportation. The state owns all the company's shares.
The 'N' block is located in the Caspian Sea, 30 kilometres south-southwest of the city of Aktau. The area is about 8100 square kilometres. The first exploration well (R-1) was drilled there at the Rakushechnoye-Sea structure after which the first confirmation of the presence of hydrocarbon resources was obtained.