/IRBIS, Oct.5, 00/ - REUTERS informs that today Karachaganak integrated organization in Kazakhstan signed $500 mln contract on drilling and major overhaul of Karachaganak oil, condensate and gas site with the alliance of Parker Drilling and Saipem (affiliated division of the Italian Eni).

The president of the national oil company Kazakhoil, Nurlan Balgimbaev said that this contract meant the drilling of new and repair of old wells, and infrastructure services.

Besides, Karachaganak integrated organization is said to have signed $900 mln on building a processing plant and exporting pipeline with Greece-Italian alliance CCC Saipem.

Total investments are said to reach $1.4 mln.

Karachaganak integrated organization's director John Marrow says based on the drilling and major overhaul contract 6 drilling equipment should be delivered. He added that these contracts would allow Karachaganak project to increase its production to more than 9 mln tons a year.

Balgimbaev says that this year Karachaganak integrated organization will extract 4.5 mln tons of hydrocarbons, whereas last year this figure was at 2.5 mln tons.

Based on the contract on major works the deposit site will be capable of reaching CPC (Caspian Pipeline Consortium) which is 650 km away form the site.

The contract is signed for three years, is said.

Mr. Marrow says that the reserves of the deposit site are estimated at 2.4 bln barrels of liquid hydrocarbons and 16 trln cubic feet.

The participants of the Karachaganak project are Agip, British Gas (32.5% each), Texaco (20%) and LUKoil (15%).

The national oil and gas company Kazakhoil acts as an authorization body in the project.