Uchenna Izundu
International Editor
LONDON, Dec. 9 -- Kazakh state-owned JSC KazMunayGas, KazMunaiGas EP (KMG EP), and BG Group PLC have agreed to study upstream opportunities in Kazakhstan and other countries under a cooperation agreement signed Dec. 5 in Almaty.
The firms will form a joint venture to focus on specific regions and suggest prospective acreage to pursue.
BG operates the large Karachaganak gas-condensate field in Kazakhstan with other companies but has postponed the third expansion phase due to higher operating costs. Phase 3 was expected to cost $8 billion and to come on stream in 2012.
The postponement could block the government's ambition to be one the world's top energy producers by 2015.
Contact Uchenna Izundu at [email protected].
