By OGJ editors
HOUSTON, Nov. 6 -- State-owned Korea National Oil Corp. is to acquire half of LG International Corp.'s (LGI) 50% stake in Egizkara oil field in Kazakstan near the Caspian Sea.
The field has 200 million bbl of probable oil reserves.
LGI, the field operator, plans to begin exploration in the field next year. It anticipates the start of production as early as 2008.
This exploration deal is the third oil investment in Kazakhstan for LGI. The other two projects are the onshore ADA Block, with reserves of 170 million bbl of oil, and the adjacent Block 8, with 250 million bbl of oil reserves.
Earlier this year KNOC and LGI formed a consortium, under which each owns a 22.5% stake in the ADA Block project, for which a detailed development and investment plan is to be announced in 2007. LGI has discovered about 20 million bbl of the reserves since exploration began in August.
On Block 8, LGI, in partnership with SK Corp., also has plans to begin exploration next year.
