“KazMunayGas” and “Shell” announce that KMG joins NCPOC as a partner on equal terms with Shell

Июля 25, 2010

JSC National Company “KazMunayGas” (“KMG”) signed an agreement with Shell Kazakhstan Development B.V. (“Shell”) to join NC Production Operations Company B.V. (NCPOC).

In accordance with the agreement KMG will join NCPOC which is responsible for executing production operations within the framework of the North Caspian project as a partner on equal terms with Shell. This transaction is carried out by KMG Kashagan B.V. (100%-owned subsidiary of KMG).
As a result of signing this agreement, KMG and Shell have become official partners in managing production operations which allows the partners to join their efforts for timely implementation of the project.
Under the terms of the North Caspian project Operating model, NCPOC as an agent company is authorized to manage production operations on behalf of NCOC, the Operator of the North Caspian Production Sharing Agreement. NCPOC was established in 2008 as a 100%-owned subsidiary of Shell. At the time of the establishment it was envisaged that KMG would join NCPOC as a partner on equal terms with Shell later. Presently NCPOC is actively involved in the implementation of the project.
KMG’s participation in NCPOC demonstrates the national company taking consistent steps to increase its role in the project and the involvement of the Kazakh side in strategic development of the project.

JSC National company «KazMunayGas» - Kazakhstani national operator for exploration, production, refining and transportation of hydrocarbon, representing the interests of the state in the oil gas industry of Kazakhstan. 100 percent of shares of JSC NC ”KazMunayGas” belongs to the JSC ”National Welfare Fund “Samruk-Kazyna”.
The North Caspian Project is carried out under the Production Sharing Agreement in respect of North Caspian Sea executed on 18th of November 1997 and includes the oilfields Kashagan, Kairan, Aktoty, Kalamkas. Kashagan oilfield is one of the world’s biggest discovery of the last 40 years.
NCOC – North Caspian Operating Company B.V., is the Joint Operating Company of the North Caspian Project. The Shareholders of NCOC are Agip Caspian Sea B.V. (16,81%), KMG Kashagan B.V. (16,81%), Conocophillips North Caspian Ltd. (8,40%), ExxonMobil Kazakhstan Inc. (16,81%), Inpex North Caspian Sea Ltd. (7,56%), Shell Kazakhstan Development B.V. (16,81%) and Total E&P Kazakhstan (16,81%).