October 7, 2008
KMG, ConocoPhillips and Mubadala Sign Agreement for Development of Kazakh Block
Kazakh state-owned KazMunayGas, ConocoPhillips and the Mubadala Development Company have signed a memorandum of understanding to negotiate terms for the exploration and development of the N Block, offshore Kazakhstan, under a new subsoil use contract.
The parties will now have until December 31, 2008 to negotiate the definitive agreements for the assignment by KazMunayGas (KMG) of a 49% interest in the subsoil use contract to be shared equally between ConocoPhillips and the Mubadala Development Company. KMG will remain the majority partner in the venture.The N Block is located 30km south-southwest offshore Aktau, Kazakhstan in the Caspian Sea. The block covers approximately 8,100sqkm and is considered highly prospective for both oil and gas.
Jim Mulva, chairman and CEO of ConocoPhillips, said: "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 exploration project."