Review of developments around Amangeldy gas field in Kazakhstan

/IRBIS, Apr 17, 01/ - The GSRW informs that a new Department for Amangeldy Field Development has been set up by KazTransGas, to cooperate with the company's Jambyl Branch in the course of operations at the Amangeldy gas field. At a presentation which took place at the Amangeldy field, Jambyl oblast, on 13th April, Daniyar Berlibayev, Vice President of KazTransGas, said that since holding an investment presentation on 11th April in Astana, KazTransGas has received more than 100 proposals from various companies and banks wishing to participate in the project. After receiving a number of applications to participate in the Amangeldy project from various companies and banks, the management of KazTransGas has held a series of preliminary talks with some companies, including Citibank, RNG Barents and JP Morgan. However, the negotiations will not become conclusive until the end of 2001, when Phase I of the field development will have been finalized and more specific data on the gas deposits will have been obtained. According to Daniyar Berlibayev, Vice President of KazTransGas, it is envisaged that in order to make the project more attractive, the strategic investor will be granted a stake in it. KazTransGas is considering raising investment on capital markets. Return on the investment would be 15% given a gas price of $35 per 1,000 cubic meters. The company has already started developing the Amangeldy group of gas fields. During the first two years of the project, about $142 mln will be invested in the Amangeldy field itself, which will make it possible to commence development in 2003. The field could supply more than 600 million cubic meters of gas per year to the south of the country. The tender board of KazTransGas will select a contractor to carry out comprehensive geological prospecting in the Amangeldy gas field by the end of April, Tanbai Naushiyev, Vice President of the company, said at the presentation which took place on 13th April in the Jambyl oblast. According to him, ten companies, three of which are foreign, are bidding for the contract. The terms of the tender provide for the selection of two winners simultaneously. Besides the Amangeldy field itself, the chosen contractors will be required to carry out prospecting in other fields of the Amangeldy group located within KazTransGas territory - Anabai, Airakty and Kumyrly.