October 5, 2008

Kazmunaygaz to Give 49% Stake in Project to Develop Caspian Shelf’s Block N Foreign Partners

ASTANA. Oct 5 (Interfax) - Kazakhstan's KazMunayGaz, the United States' ConocoPhillips and the United Arab Emirates' Mubadala Development Company PJSC signed a memorandum of understanding in order to agree on terms of exploring and developing the block N located in the Kazakh portion of the Caspian shelf within the framework of a new subsurface management contract in the presence of Kazakh Prime Minister Karim Masimov in Astana on Sunday, the Kazakh governmental press service reported.

"The parties should now conclude a final deal on the transfer of a 49% stake in the subsurface management contract from KazMunayGaz to ConocoPhillips and Mubadala, which will be equally divided between the companies, by December 31, 2008. KazMunayGaz will hold a blocking stake in the project," a joint statement by the tree companies reads.

The block N is located 30 kilometers southwards from the southwestern shelf of the town of Aktau in the Caspian Sea, the statement reads. "The block is situated on 8,184 square meters and is very promising from the point of view of both oil and gas," the statement reads.

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