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KazMunayGas, ConocoPhillips and Mubadala Announce Signing of Memorandum of Understanding for “N” Block, Offshore Kazakhstan

October 6, 2008

JSC National Company KazMunayGas (KMG), ConocoPhillips (NYSE:COP) and Mubadala Development Company PJSC (Mubadala) today announced that they have signed a Memorandum of Understanding (MOU) to negotiate terms for the exploration and development of the “N” Block, located in offshore Kazakhstan, under a new subsoil use contract. The parties will now have until Dec. 31, 2008 to negotiate the definitive agreements for the assignment by KMG of a 49 percent interest in the subsoil use contract to be shared equally between ConocoPhillips and Mubadala. KMG will remain the majority partner in the venture.

“KazMunayGas looks forward to a speedy conclusion to the negotiation and a successful, long-term relationship with both ConocoPhillips and Mubadala. Cooperation with these companies would allow for the attraction of new technologies relating to the exploration and production of oil and gas on the Caspian shelf,” said Kairgeldy Kabyldin, President, KazMunayGas.

“ConocoPhillips looks forward to establishing a major new exploration presence in Kazakhstan, building on our long-standing participation in the oil and gas sector here, and will be honored to participate with KazMunayGas and Mubadala in this world-class exploration project,” said Jim Mulva, chairman and chief executive officer, ConocoPhillips.

“Mubadala is an active developer in the international energy sector, with a growing portfolio of first-class assets in the upstream oil and gas sector, and this MOU marks another significant step forward for us,” said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company. “We are excited by the potential of this block and the opportunity it provides for us to bring our experience to bear, working together with trusted organizations like KazMunayGas and ConocoPhillips.”

The “N” Block is located 30 kilometers south-southwest offshore Aktau, Kazakhstan in the Caspian Sea. The Block covers approximately 8,100 square kilometers and is considered highly prospective for both oil and gas.

The MOU was signed by Kabyldin, Mulva and Al Mubarak and was witnessed by His Excellency Sayat Mynbayev, Minister of Energy and Natural Resources of the Republic of Kazakhstan.

Notes to Editors:

JSC National Company “KazMunayGas” (KMG) is a national oil and gas exploration, production, processing and transportation operator representing the Government of Kazakhstan’s interests in the country’s oil and gas industry. KazMunayGas is wholly owned by JSC Kazakhstan Holding for Management of State Assets “Samruk.” Additional information about KazMunayGas can be found at www.kmg.kz.

ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, Texas, the company had approximately 33,100 employees and $190 billion of assets as of June 30, 2008. For more information, go to www.conocophillips.com

Mubadala Development Company (Mubadala) is a public joint stock company headquartered in Abu Dhabi, capital of the United Arab Emirates. Its focus is on developing and managing an extensive and economically diverse portfolio of commercial initiatives. It does this either independently or in partnership with leading international organizations. Mubadala’s commercial strategy is fundamentally built on long term capital intensive investments that deliver strong financial returns.

The company manages a multi-billion dollar portfolio of local, regional, and international investments, projects and initiatives. Through its investment and development projects, Mubadala is both a catalyst for, and a reflection of, the drive for economic diversification of the Emirate of Abu Dhabi. Its impact is evident domestically and internationally in sectors such as energy, aerospace, real estate, healthcare, technology, infrastructure and services.

Mubadala’s sole shareholder is the Government of the Emirate of Abu Dhabi. For more information about Mubadala, its partnerships and activities please visit www.mubadala.ae.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that contain projections about our revenues, income, earnings and other financial items, our plans and objectives for the future, future economic performance, or other projections or estimates about our assumptions relating to these types of statements. These statements usually relate to future events and anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as “anticipate,”"estimate,”"believe,”"continue,”"could,”"intend,”"may,”"plan,”"potential,”"predict,”"should,”"will,”"expect,”"objective,”"projection,”"forecast,”"goal,”"guidance,”"outlook,”"effort,”"target” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements are based on management’s expectations, estimates and projections about ConocoPhillips and the petroleum industry in general on the date this statement was released. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect ConocoPhillips’ business are generally as set forth in ConocoPhillips’ filings with the Securities and Exchange Commission (SEC). Unless legally required, ConocoPhillips undertakes no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.




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