ID :
34233
Sat, 12/06/2008 - 16:39
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http://m.oananews.org//node/34233
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Mubadala signs deal in Kazakhstan
Almaty - Dec 6, 208 (WAM) - Conoco-Phillips and the UAE's Mubadala Development will pay Kazakhstan a US$100 million signing bonus as part of a deal to buy a stake in a Kazakh offshore oil block, according to a report by Reuters.
Conoco and Mubadala agreed in October to buy 24.5 per cent each in a Caspian block known as "N" from Kazakh state energy firm KazMunaiGas, but have not given details of the deal.
"According to the agreement, our foreign partners will pay a signing bonus of US$100 million," KazMunaiGas chief executive Kairgeldy Kabyldin said after the three companies signed another provisional agreement in Almaty.
He declined to say how much the two would pay in total.
The final deal will be signed early next year after the contract is changed from a production sharing agreement to a concession, Kabyldin said. The change means companies will be subject to higher taxes and all future tax law changes.
The "N" block, previously known as Nursultan, is estimated to hold 270 million tonnes of oil in recoverable reserves, Kabyldin said. "We plan to launch commercial production in 2016 if all current hydrocarbon reserve estimates are confirmed," he said.
Kabyldin said foreign partners would finance all exploration costs and pay a discovery bonus if drilling is successful.
Conoco and Mubadala agreed in October to buy 24.5 per cent each in a Caspian block known as "N" from Kazakh state energy firm KazMunaiGas, but have not given details of the deal.
"According to the agreement, our foreign partners will pay a signing bonus of US$100 million," KazMunaiGas chief executive Kairgeldy Kabyldin said after the three companies signed another provisional agreement in Almaty.
He declined to say how much the two would pay in total.
The final deal will be signed early next year after the contract is changed from a production sharing agreement to a concession, Kabyldin said. The change means companies will be subject to higher taxes and all future tax law changes.
The "N" block, previously known as Nursultan, is estimated to hold 270 million tonnes of oil in recoverable reserves, Kabyldin said. "We plan to launch commercial production in 2016 if all current hydrocarbon reserve estimates are confirmed," he said.
Kabyldin said foreign partners would finance all exploration costs and pay a discovery bonus if drilling is successful.
