National Company KazMunayGaz (Kazakhstan) signs Heads of Agreement on Abay block with Statoil

/KASE, March 31, 11/ - National Company KazMunayGaz (Astana), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press-release of march 30, 2011: quote JSC NC "KazMunayGas" and Statoil have signed the Heads of Agreement (HOA) on the Abay block located in the Kazakhstani sector of the Caspian Sea on 16 March this year. Under the HoA, the parties plan to conduct work on agreeing the terms of cooperation in implementing the Abay project. In addition, the parties have agreed Statoil's participation in the construction of a jack-up drilling rig that will be used to develop the block on the Caspian shelf in the future. - We are interested in cooperation with Statoil, in attracting and using their experience and technologies in operating international offshore oil and gas projects. HoA signing confirms the intentions of the Parties about the strategic partnership of our two companies on the joint activities in the Caspian Sea, - said Kairgeldy Kabyldin, Chairman of the Board of JSC NC "KazMunayGas". - Joint cooperation in the Abay block is an important strategic step for Statoil as we continue our international growth. This agreement marks an important milestone - Statoil's re-entry into Kazakhstan - and I am very pleased that we have secured a strong partnership with National Company "KazMunayGas", - says Tim Dodson, Executive Vice President for Exploration in Statoil. Shortly JSC NC "KazMunayGas" is planning to start direct negotiations with the Ministry of Oil and Gas of Kazakhstan on getting the subsoil user rights on the Abay block. In the implementation of the project, the parties will assume obligations on training the local personnel and financing social projects. For reference: The Republic of Kazakhstan and the Kingdom of Norway signed the Joint Declaration on Further Development of Friendly Ties and Cooperation and the Joint Statement on Oil and Gas Dialogue and Cooperation on 25 May 2004. JSC NC "KazMunayGas" and Statoil signed the first Memorandum of Understanding on Possible Cooperation on the "Abai" Area on 30 June 2005. JSC NC "KazMunayGas" and Statoil signed a Memorandum of Understanding within the framework of the 4th International Investment Summit in Almaty on 3 June 2010. The "Abai" area is located in the northern part of the Kazakhstani sector of the Caspian Sea, 65 km from the shore, at a depth of 8-10 m. National Company KazMunayGaz is a Kazakh national operator on exploration, production, refining and transportation of hydrocarbons. 100% stake in NC KazMunayGaz belongs to the Sovereign Wealth Fund Samruk-Kazyna. Statoil is an international energy company represented in 40 countries of the world. Its is one of major exporters of crude oil, biggest operator of deep-water oilfields with the depth of more than 100 meters, global leader in catching ant storage of CO2, second largest gas exporter in Europe as well as the biggest seller of oil products in Scandinavia. Statoil established its office in Astana in 2004. PR Department National Company KazMunayGaz 19, Kabanbai batyr ave., Astana 010000, Republic of Kazakhstan tel. +7 (7172) 976340, fax: +7 (7172) 976329 pr@kmg.kz; www.kmg.kz Branch of Statoil North Caspian in the Republic of Kazakhstan Samal micro-district, 12th and 13th floors, Astana 010000, Republic of Kazakhstan tel.: +7 (7172) 58 00 86, +7 (7172) 58 00 87 abai@statoil.com, www.statoil.com unquote [2011-03-31]